Are you ready for a hybrid vehicle?

Here come the hybrids.

Sports utility vehicles and pickup trucks that combine gasoline engines with battery-powered electric motors are on the way, joining the passenger cars that are already available.

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Ford plans to launch its Ford Escape hybrid in December. Hybrid SUVs from Saturn and Lexus are due to arrive in 2005, followed by a hybrid SUV from Chevrolet in 2006.

General Motors will launch two models of hybrid pickups in 2004 and a Chevrolet Malibu hybrid sedan in 2007.

Families that prefer an ultra fuel-efficient and eco-friendly set of wheels will have a lot more choices in just a few years.

Right now, folks who want to embrace the new hybrid technology and do their part for the environment have three auto choices: a Toyota Prius sedan, a Honda Civic hybrid or a two-seater Honda Insight.

Hybrid vehicles are good for the earth because they suck up less gas and spit out less pollution. But before you dash out and buy one, be sure to consider the cost.

Being an environmental trailblazer isn't cheap. The hybrid cars available today cost anywhere from $1,500 to $4,000 more than comparable conventional cars.

Despite ultra-impressive gas mileage, you'll have a tough time making up the price difference at the pump. And that doesn't include any additional maintenance costs and the possibility that you may have trouble reselling the vehicle.

On the other hand, you do get a substantial tax break by purchasing a hybrid car.

Fuel-cost comparison
Let's start by comparing the gasoline costs of driving a $20,000 Civic Hybrid with a $16,500 Civic LX. The Civic Hybrid with a manual transmission gets an impressive gas mileage of 46 miles per gallon in the city and 51 mpg on the highway. The Civic LX gets 33 mpg in the city and 39 mpg on the highway.

We'll use city mileage figures for both cars because that's the mileage estimate most drivers are likely to achieve. Let's say gas is $1.50 per gallon and you drive 15,000 miles every year.

Will you be able to rack up $3,500 in fuel-cost savings with your Civic Hybrid? Not unless you plan on keeping the car forever.

Driving a Civic Hybrid instead of a Civic LX will trim your fuel costs by about $193 a year. After five years you'd save $965 at the pump. After 10 years, you'd save $1,930. After 15 years you'd save $2,895, but you'd still be more than $600 short of your $3,500 goal.

Let's take a closer look at the numbers.

To drive 15,000 miles with a Civic Hybrid, you'll need to pump in about 326 gallons of gas. Pay $1.50 a gallon and your yearly fuel costs will run about $489.

To drive 15,000 miles with a Civic LX, you'll need to pump in more than 454 gallons of gas. At $1.50 a gallon your yearly fuel costs will run about $682, just $193 more than the Civic Hybrid.

Of course, the more gas prices go up, the more money you'll save driving a Civic Hybrid instead of a conventional Civic.

So let's say gas prices shoot up to $2 a gallon. Yearly fuel expenses with a Civic LX will run about $908 compared with $652 for a Civic Hybrid. That's a savings of $256 a year. After five years of high fuel prices you'd save $1,280. But you're still a long way from recouping the extra $3,500 you paid for your environmentally friendly set of wheels. Helping the earth can be hard on your wallet.

Tax break
A one-time federal tax deduction of $2,000 may help soften the blow. Any car shopper who purchases a new hybrid through 2003 is eligible for the full tax deduction. A smaller deduction will be available through 2006.

"It's a laudable attempt by the federal government to get you to buy a fuel-efficient vehicle," says Bob Trinz, an editor of RIA's Federal Taxes Weekly Alert.

Keep in mind that this is a tax deduction, not a tax credit. Consumers who purchase all-electric vehicles can get a tax credit, but the IRS warns that the credit does not apply to hybrids since they do not depend chiefly on electricity. However, even a deduction can save you a nice chunk of change.

Just how much the deduction will save you on your federal taxes depends on your tax bracket. A hybrid owner in the 38.6 percent tax bracket would knock $772 off his or her tax bill. Someone in the 35 percent tax bracket would save $700. A hybrid owner in the 27 percent tax bracket would save $540.

Even a hybrid owner who takes a standard tax deduction will qualify for this deduction.

"You need not itemize to claim this," Trinz says. "It's commonly described as an above-the-line tax deduction."

You claim the $2,000 deduction on line 32 of tax form 1040. Be sure to write the words "clean fuel" as well.

Some states offer tax breaks to hybrid-car buyers, as well. For example, in Oregon you receive a $1,500 credit when you buy any hybrid vehicle. Be sure to ask your state's tax department about hybrid cars. It could save you some serious cash on a state tax bill.

But a lot of car shoppers who would consider buying a hybrid aren't bothered by the extra costs, according to a recent survey by J.D. Power and Associates, a marketing information and research firm based in Agoura Hills, Calif.

Lots of folks say they would go forward with a hybrid purchase if they could recover at the gas pump just half of the additional cost.

For example, they'd be willing to shell out $3,500 more for a Civic Hybrid as long as they could save $1,750 in gas expenses while they owned the car. A Hybrid owner who drives 15,000 miles a year could achieve that goal after five years with the help of the one-time federal tax deduction.

Why do people seem willing to take a financial hit when purchasing a hybrid car?

"They want to do the right thing for the environment. They want to be seen participating in that effort," says Thad Malesh, a director of the alternative power technology practice at JD Power.

Thanks to impressive fuel efficiency and squeaky-clean emissions, hybrid cars are much kinder to the environment than traditional cars.

For example, the Toyota Prius is 90 percent cleaner than the average new 2003 car, according to the California Air Resources Board. This five-passenger sedan is considered a Super Ultra Low-Emission Vehicle (SULEV). And with a gas mileage of 52 mpg in the city and 45 mpg on the highway, you'll be able to drive quite some time before you even have to think about refueling.

Incidentally, the car gets better mileage in the city because it uses the electric motor more with that type of driving.

The 2003 Honda Civic Hybrid falls under the Ultra Low-Emission Vehicle (ULEV) category, which isn't too shabby either. A ULEV is about 50 percent cleaner than the average new 2003 model year car.

And while plenty of 2003 cars fall under this category, they don't match Civic Hybrid's gas mileage of 46 mpg in the city and 51 mpg on the highway. A Civic Hybrid is about 30 percent more fuel efficient than a conventional, gas-powered Civic.

As for the Honda Insight, this little two-seater is the most fuel-efficient car in the country hands down. Its gas mileage is an impressive 61 mpg in the city and 68 mpg on the highway. Its automatic model, which comes with a continuously variable transmission, has been certified as a SULEV vehicle.

What to ask before you buy a hybrid
Still, as good as these cars may be for the environment, consider the long-term impact on your wallet. Here are some financial questions even the most stringent environmentalist should consider before purchasing a hybrid.

Can you and your family afford to spend an extra $1,500 to $4,000 upfront on a new car?

How long do you plan to keep the car? The resale value of a used hybrid is a big question mark. It's possible you could take another financial hit when you sell a hybrid. If you're not prepared to keep a hybrid for the long haul, think twice about purchasing one.

Can you afford the repairs? A key concern for long-term hybrid owners is maintenance costs. If you keep a car beyond warranty, you'll be stuck with the repair bills and they could get expensive.

"At some point the batteries are going to have to be replaced and they're expensive," says Larry Webster, a technical editor at Car and Driver. "The cost could be anywhere from $1,000 to $2,000."

The hybrid parts in a Toyota Prius, including batteries, are covered by an eight-year, 100,000-mile warranty. Honda covers its hybrid systems with an eight-year, 80,000-mile warranty. So in your ninth year as a car owner, you'll be on the hook for any hybrid repairs in addition to the car's ordinary maintenance costs.

Intrigued by hybrid cars but not sure if you can afford one? This hybrid car decision maker from Bankrate.com will help tell you.