As the number and type of hybrid cars grow, consumer interest in these vehicles increases as well. What initially appealed to a select group of environmentalists is now being bought and considered by more mainstream buyers.But let's face it: The sticker price of a hybrid vehicle is significantly higher than its gasoline-powered counterpart. Does the improved fuel economy offset the extra cost? What happens if the hybrid drivetrain breaks?

We looked at a variety of issues and talked with hybrid owners and manufacturers to learn the real costs of owning one of these high-tech cars.

Price Premium vs. Incentives

Not counting the Lexus models, hybrid cars cost roughly $1,700 to $11,200 more than comparably equipped gasoline vehicles. However, buyers can offset that premium with a federal tax credit, part of the Energy Policy Act of 2005. The tax credit provides a dollar-for-dollar reduction in the tax bill and go as high as $3,000, depending on the model.

The hitch? Once a manufacturer sells 60,000 vehicles, the credit gradually decreases over a period of 15 months until it is phased out entirely. While the act keeps the tax credit in effect until 2010, Toyota has already reached its cap, and credit for Toyota and Lexus vehicles has been phased out. As of January 1, 2009, credits will no longer be available for Honda. (More details on hybrid tax credits are explained here.)

Making the deal even sweeter, several states offer tax deductions and incentives for hybrid purchases. The rebates vary from state to state, but when combined with the available federal tax credits, they can add up to substantial savings.

Some states also allow a hybrid owner to drive in the carpool lane, while others give discounts or free parking. A list of available federal incentives is available at Edmunds.com hybrid car tax credits page, as well as state and private hybrid incentives available at Hybrid Center.