KEN EXUM/The Register-Mail

Hybrid cars like this 2007 Toyota Prius, which used to be on the lot at Bob Lindsay Toyota-Honda on North Henderson Street, are hard to keep in stock.

Illinois rewards hybrid drivers

State offers $1,000 rebates for vehicles, which are in short supply locally

Friday, July 20, 2007

BY STEVE TARTER and Ron Jensen

GateHouse News Service

The bad news is that hybrids are in short supply in central Illinois.

The state treasurer's office is providing $2 million in rebates for 2,000 Illinois drivers who purchase a new hybrid, a vehicle that combines an electric motor with a gas-powered engine, providing improved mileage.

The "green rewards" program is believed to be the first incentive program encouraging hybrid purchases in Illinois.

"The first reason for offering rebates is to help the environment, to curb global warming," said State Treasurer Alexi Giannoulias. "The second is skyrocketing gas prices. Illinois is paying the highest gas prices in the nation, and families are struggling," he said.

"Here's an economic program that can help on both fronts," said Giannoulias, who is offering the rebate through Illinois financial institutions.

To take advantage of the program, buyers must secure a car loan from a participating bank or credit union. Among the institutions participating is the CEFCU credit union. "We think the program provides value to our members," said

Keith Reynolds, vice president of credit consumer lending and business services.

The treasurer's office runs a list of participating financial institutions on its Web site at www.treasurer.il.gov, but Giannoulias encouraged those interested to go to any bank or credit union to ask about the rebate. "The program is open to every accredited financial institution in the state," he said.

But the biggest challenge for the program may not be selecting an institution to process the rebate but in finding a vehicle to buy. Hybrids aren't exactly jamming dealer lots in the Galesburg and Peoria area.

"When we get them, we sell them," said Rick Sandoval, salesman at Lakis Ford Dodge, 2201 W. Main St. in Galesburg. "It's just getting the darn things."

Ford's entry in the hybrid world is the Escape, which Lakis has trouble keeping on the lot. Sandoval said the priority areas for supply are the East and West coasts.

"Then they trickle down to the Midwest," he said.

The rebate program will help, he said. The demand is increasing ahead of the availability around here.

"(People) look for them all the time," he said. "We've got a lot of green people out there."

Jeff Klinck, president of Galesburg Lincoln Mercury Nissan, 120 N. Broad St., Galesburg, said he has sold four hybrids, mostly the Mercury Mariner, but added, "We can't get them in. Supply hasn't caught up with the demand."

He had to tell a prospective buyer from Peoria the bad news earlier this week, he said.

He said the manufacturer has told him the Mariner is already sold out for 2008. And the Nissan Altima is available only in states with laws requiring low emission rates.

"There will be no Nissan Altima sold in Illinois this year," he said.

That's not true of the Prius, for example, Toyota's popular hybrid, which can get 60 miles per gallon. Jeff Everhart, general manager and part owner of Bob Lindsay Honda Toyota, 2080 N. Henderson St., said some were on his lot this morning, but not for long, perhaps.

"We have some that last two hours," he said. "The Toyota Prius is the hottest selling car. As soon as we get them, they're gone."

He supports the state's rebate program as "one more push" for people undecided about making the jump.

"It's a good thing," he said. "Anything to help with our gas situation is a god thing. I'm all for it."

"They usually get sold before they hit the (dealer) floor," said David Desmond Jr., a salesman at Peoria Toyota, 7401 N. Allen Road, referring to Toyota's Prius model, the best-selling hybrid vehicle in the country.

While no Prius models are available at the Peoria Toyota dealership, there is a hybrid Camry in stock, said Desmond.

Over at Bob Lindsay Honda on Pioneer Parkway, sales manager Mike Bowermaster said a limited number of hybrid vehicles are in stock. "We've got three Civic hybrids and one Accord hybrid," he said.

Hybrid vehicles come in all shapes and sizes - and price ranges - these days. For example, a Lexus hybrid is available for about $60,000 at the Peoria dealership.

Lexus sales manager Chris Sichak said an even more elaborate hybrid model was coming. "This summer we're launching the 600HL sedan with a V8 engine and two electric motors. It will provide the power of a V12," he said.

With a sticker price of $102,000, however, a $1,000 rebate may not be a big factor in the sale.