The credit crunch and hybrid sales

Can the Prius continue its hot streak into Fall?

The Toyota Prius was hot in July, really hot, but how will the Prius and other hybrid cars sell if consumer credit continues to be crunched? Will the credit crunch affect hybrids more than conventional vehicles?

Part of the success of the Prius has been high energy costs. Still, the Prius isn't an economy car, and while many economy cars might not achieve the fuel efficiency of the Prius, they cost a good bit less. As home prices fall, economy cars might start looking like a better solution for some hybrid buyers trying to deal with energy costs

Of course, weak car sales could lead to incentives - including hybrid incentives, especially as dealers try to unload their 2007 models to make room for 2008 models. Consequently, it might be a good time to buy a hybrid - if you have any equity left.