Actually, the gov't is offering tax breaks to people who purchase hybrids. A lot of state gov'ts are as well. There are also a lot of dealers who are offering higher prices on trade-ins to buy a hybrid. In most cases, this covers more than the amount the hybrid exceeds the price of a gas car.
Not only that, but I know you can't test drive a Prius in some places because they can't keep them in stock. People test them when the dealerships get an ordered model and call people to come and drive it before it gets delivered.
So it's catchign on.
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