As gasoline prices hover around $3 a gallon, you may start wondering about how much you could save with a new high-mileage gas-electric hybrid vehicle. Indeed, the right hybrid will save you hundreds of dollars a year at the gas pump. But whether you will really save money overall after paying a higher price for that hybrid is a calculation you need to work through carefully—taking into account all your costs.

If you're considering a hybrid car purchase, here are some points to consider to help make sure you consider the right model:

1. Make sure you're getting a big mileage boost
   Be sure to look carefully at the mileage difference between the hybrid model and the regular model, and make sure you're getting a big improvement. For the latest on hybrids and other green cars, visit www.edmunds.com and click on Tips and Advice.
   
2. Look at the tax credit
   Getting a federal tax credit (which is worth more than a deduction because it comes right off your tax bill, not your income) surely can make a difference to hybrid economics. Congress set these tax credits to first shrink and then vanish as a car company approached and then reached sales of 60,000 hybrids. To see a list of credits for all models, visit the IRS Web site at www.irs.gov.
   
3. Consider when you might sell your hybrid
   If you tend to get a new car every two to three years, resale value will be especially important to you. Thus a higher resale value for a Toyota Prius compared with its closest gas-only family counterpart, the Toyota Corolla, will mean money in your pocket. And you will realize that value whether you sell the car yourself or trade it in on a new one.
   
4. Look for hybrids in some unusual places
   More and more car manufacturers are now offering hybrid systems in their mainstream cars. General Motors is making this change even to big SUVs like Chevrolet Tahoe and Cadillac Escalade.

Only you can decide if paying more for a hybrid makes economic sense for you. When you've made the decision, call Direct Federal for more information on your auto loan options at 781.455.6500.