With an all-electric or plug-in hybrid car, you qualify for tax credit. However, you need to buy the car as new and drive it within the U.S., according to the U.S. News and World Report. Some states, such as Washington, give you tax credits for used electric and hybrid cars.

Although the cars come at a higher price initially, you should take the local, state, and federal tax credits and incentives into consideration. Federal tax credits will offer you as much as $7,500. And with tax season right around the corner, you can make a down payment on your next hybrid vehicle using your tax refund. As the financial year comes to an end, dealerships present great offers for hybrid vehicles purchased with tax refunds.

Your tax refund can convince lenders that you are really in need of a hybrid car, and they might offer you an auto loan. Before you buy a hybrid car, however, you need to research to understand their reliability and confirm that the car qualifies for tax credit.

Below are some of the most reliable hybrid vehicles for your tax refund consideration.

Hyundai Sonata Hybrid

For many years now, the U.S. News and World Report has placed the Sonata Hybrid among the best hybrid and electric vehicles. It is highly reliable, comes with a long list of standard features, and offers sufficient cargo space for a sedan. In 2017, U.S. News ranked the car at position seven for hybrid cars, but it has since scaled the ranks to be the top car.

The car seats five passengers and can generate 193 or 202 horses, depending on the engine option. In the city, its fuel economy is as high as 39 mpg, and on the highway, it offers up to 45 mpg. With numbers like these, you can stretch that refund money.

Go green with your tax refund in these hybrid vehicles
Toyota Camry Hybrid

In 2017, U.S. News rated the Toyota Camry Hybrid as the top hybrid car in the world. The car got a high rating thanks to its reliability, smooth ride, user-friendly infotainment system, and spacious cabin. To rank the car as the top, U.S. News analyzed 42 data points, including the car’s safety, performance, and cost.

When shopping for a used Camry Hybrid, models from 2017 or earlier have a peppy engine but with a little less power. The 2018 model was redesigned to offer more power, sleeker styling, and more safety features.  

Toyota Avalon Hybrid

The Toyota Avalon Hybrid debuted in 2013 and instantly became one of the top hybrid cars. In 2019, U.S. News ranked the car as the second best car in the hybrid and electric cars category.

The Avalon Hybrid is roomy and rich in features. It offers a quiet cabin that seats five passengers and plenty of advanced technology features. Used models of the car offer city fuel economy of up to 40 mpg and highway fuel economy of up to 39 mpg. The 200-horsepower engine feels peppy and delivers a smooth ride.

Go green with your tax refund in these hybrid vehiclesHonda Accord Hybrid

The Honda Accord Hybrid has been among the top hybrid cars many years in a row. In 2018, the hybrid sedan ranked position three among the U.S. News and World Report rankings that year. It sports a good predictability rating, a roomy cabin, and a long list of safety features.

The car received a complete redesign for the 2018 model. If you pick a 2018 or 2019 model for your used Accord Hybrid, you will enjoy more advanced features. It has excellent fuel economy and ranks great in EPA crash test results. Inside, the car has user-friendly infotainment features and a host of driver-assistance features.

Hyundai Ioniq

The Hyundai Ioniq has only been in production since 2017, but the car has great reliability and fuel economy ratings. It is among the top hybrid cars for a number of reasons, including the roomy cabin, agile handling, large cargo space, and user-friendly infotainment system. It also has a long list of safety and driver assistance features.

The five-seater car offers up to 57 mpg city and up to 59 mpg highway fuel economy. Its engine delivers up to 139 horsepower and pairs with a front-wheel drivetrain. The electric motor can propel the car for 124 miles on full charge, with newer models giving an even longer ranger.

Go green with your tax refund in these hybrid vehicles
Kia Optima Hybrid

The Optima Hybrid is a sleek sedan with an easy-to-use infotainment system. It is among the top hybrids thanks to its ample cabin space, comfortable seating, high reliability ratings, and smooth ride. The car seats five passengers, and used models offer 39/46 mpg city/highway fuel economy. Depending on the engine configuration, it can offer between 192 and 202 horsepower.

In 2017, the Kia Optima Hybrid received a full redesign to give it a completely new look and more advanced features. If you go for a used model from 2017 or later, you will enjoy as many features as the new models offer. Some of these features include Apple CarPlay, Bluetooth capability, a 7-inch touchscreen LCD display, satellite radio, a rearview camera, and leather upholstery in top trims.

Toyota Prius

The Toyota Prius has been among the top hybrid cars since its first production year in 2007. In 2017, the car ranked position four in the U.S. News and World Report rankings. Some of the most impressive qualities of the car include excellent cargo room, comfortable ride, and above-average reliability rating.

Even older models of the car receive great safety ratings with features such as the Smart City Brake Support system from Toyota, a rearview camera, forward collision warning, pedestrian detection, adaptive cruise control, and lane keep assist, among others. Combined, the gas and electric engines offer 121 horsepower, making the car great for local driving.

Go green with your tax refund in these hybrid vehiclesLexus ES 300h

This is a hybrid car with an efficient powertrain to offer high fuel-efficiency numbers. The car has a luxurious cabin with an impressive finish. In the rear seat, the car has sufficient legroom, and even tall passengers will find it comfortable.

It is a car for those looking for a used mid-range car with a long list of luxury features. Even used models from 2017 or earlier have a modern and stylish cabin. It also has simple, everyday controls such as audio/tech and climate control settings.

Honda Insight

You’d be forgiven to think this is a regular car and not a hybrid because it drives like a regular car. The car received a redesign in 2019 to bring all-new features and make it sleeker. Used Insight models come with high fuel economy figures, quick acceleration, and a roomy interior. This car has a conventional sedan style that makes it unique as a hybrid option. You will, however, come across used models that are hatchbacks – these are models before 2019.

Research Before Buying

Almost every automaker has a hybrid model today. It’s important to research and compare in order to find the most reliable option and get the biggest return on your investment. You also need to check for models that qualify for tax credits. In some states, used models will qualify for tax credits, and this is your chance to grab a hybrid car with your tax refund check.

Once you find the car you love, use your tax refund to make a down payment and stand a better chance of getting auto loans.