How to Finance Your Hybrid Car in 4 Steps

How to Finance Your Hybrid Car in 4 Steps
  • Opening Intro -

    Financing a hybrid car is no different from financing any other model, though the cost of a hybrid is usually a few thousand dollars higher than a conventional gas-powered vehicle.


Hybrid models use gas and battery electric power systems, the latter adding to the cost of these cars.

1. Consider your choices. The hybrid car market has expanded beyond the Honda Insight and the Toyota Prius, the first gas-electric models sold in the United States. The Prius and Insight are among the very few models sold exclusively as hybrids while other models offer gas or hybrid variants. The Ford Fusion, Hyundai Sonata, Toyota Camry and Chevrolet Silverado are among the models with hybrid options, costing several thousands dollars more while offering improved fuel efficiency and lower emissions.

2. Compare prices between dealers once you settle on a particular hybrid model. Some hybrid models offer rebates or discounted financing, something to keep in mind when considering your final price and when weighing your auto loan options. One of the most important considerations is the dealer invoice price, what the dealer pays for your car before options are added or manufacturer to dealer incentives are included. Your dealer most likely will not share that information with you, but that information can be found online through sites such as Kelley Blue Book, Edmunds and Consumer Reports according to

3. Contact your bank or credit union to obtain auto loan financing information from them. Ask for a loan quote based on the make/model hybrid car you are considering, obtaining rates for a variety of loan terms. Shorter-term loans usually mean a lower interest rate; your bank may offer an additional discount if you agree to have your loan payments deducted automatically from your checking account. A larger down payment can also yield a lower financing rate. Take the bank financing if the rate is competitive with what your dealer offers.

4. Make a deal. Armed with the information you need to know about your hybrid car, you are now prepared to negotiate with the dealer on the price you will pay for your car. Once you have agreed on price including taxes, fees and registration and have factored in rebates, make your down payment. The balance is what you will be financing, an arrangement you already made with your bank or credit union.

Special Tip

The commercial sites providing pricing information about new cars charge for that information. Compare plans before making your purchase. Federal tax credits for hybrid car purchases ended on December 31, 2010. Your state may offer credits and incentives which should not be factored into the price you negotiate for your car.

Adv. — Explore your auto loan and other financing choices by visiting


end of post idea


Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.

facebook linkedin pinterest

Amazon Affiliate Disclosure: is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to The commission earnings are used to defray our cost of operation.

View our FTC Disclosure for other affiliate information.

Categories: Consumer Financing

About Author

Matthew C. Keegan

Matt Keegan is a freelance writer and editor as well as publisher of "Matt's Musings", his personal blog. Matt covers campus, consumer, business and financial topics on various websites and blogs, and has been published in the "Houston Chronicle", "Sam's Club Magazine" and "Wisconsin Golfer".