The end of the year is coming fast for buyers of hybrid cars, as tax incentives run out when the new year arrives, according to the Wall Street Journal (subscription required)

The tax credit for the Honda Civic hybrid ends at the end of the year, just like it did about a year ago for Toyota Motor Corp.'s Prius, a strong-selling hybrid that gets about 46 miles per gallon. The federal government is phasing out the same incentives for Honda Motor Co.'s Civic hybrid, which gets 42 miles a gallon.

According to the Journal, hybrid tax incentives start to go away when a car maker sells its 60,000th alternative-fuel vehicle, a level Toyota reached in mid-2006 and Honda hit in the third quarter of 2007. The amount of the tax credit is first reduced by 50% before disappearing altogether over several months. Honda's $525 tax credit will be phased out by Dec. 31, according to the Internal Revenue Service. The Civic credit had been as high as $2,100 before the phase-out began in January 2008.

When they were first introduced, the only hybrid cars on the market were Toyotas and Hondas -- small, practical cars that were admittedly a little funny-looking. These vehicles were much more about economy than style. Luxury automakers were slow to jump on the hybrid bandwagon, as their target customers have not generally been too concerned with the cost of fuel.

Times have changed, though, and rising fuel costs are affecting even the wealthiest sectors of the population. Environmental concerns are growing, too, and hybrid cars are in very high demand. In June 2009, Mercedes will begin selling its first hybrid -- a large car that balances fuel economy with sexiness.

At 30 miles per gallon, the new model will approximately double the mileage of the non-hybrid luxury S-class sedan, but it's still no 60mpg Prius. Mercedes execs argue that this large car is more practical for their customers, with plenty of space to pack for vacations. There's no official price tag just yet, but Mercedes Marketing Director Klaus Maier estimates a premium of less than €10,000, or $14,000. That would put the total price in the neighborhood of $100,000 - $160,000, depending on options.

Every time I play the fantasy of coming into great wealth, my first thought is private air travel. Just imagine waltzing past the hoi-poli on the way to my own jet, outfitted (in my imagination) in James Bond style, plenty of ancient scotch in crystal decanters and nubile attendants....oops. Enough of my fantasy life.

I am pleased to learn, though, that when the time comes to pick out my private plane I can stick with the manufacturer that has gained my loyalty through the dependability of its products, Honda. The new twin-engine Hondajet holds up to 8 passengers and is very fuel efficient, thanks to use of space-age materials. The price tag, a paltry $3.65 million, hasn't scared off my fellow fat cats. The planes are in production, with the first deliveries expected in 2010.

If you're in the market for such a sweet ride, visit your local Piper dealer, who will sell and service the Hondajet. I hope they have one left when my ship comes in. In red, preferably.

Thanks to Inventorspot

The motorcycle industry's soft 2007 performance and the high cost of gas might work to your favor if you're interested in taking up motorcycling. According to the L.A. Times, sales of two-wheelers were off as much as 8-10% last year, with the sharpest declines in off-road machines and cruisers from Harley-Davidson.

While bikes built overseas, such as the BMW and Ducati, will suffer from the declining dollar, home-grown products by Harley and Honda (built in Ohio) could become a better relative value. As dealers begin to accumulate stock for the spring season (which begins in earnest the first warm day in the spring for much of the country) they may be offering some excellent deals on older stock. If you have good credit, you might also be able to get good financing. Harley especially has suffered from credit it extended to those on the borderline of the ability to pay.

If you are interested, this is also the perfect time to sign up for motorcycle training. Most states offer low-cost riding schools through the Motorcycle Safety Foundation that will take you from raw novice to a rider prepared to pass the test for a license. Harley has its own program, Rider's Edge, offered in many locations across the country. Both are extremely female-friendly, too. In fact, many instructors have told me that women make better students -- less ego. Many insurance companies offer discounts to graduates of training schools.

Why sacrifice summer travel due to the cost of gas, when you can enjoy the open road and travel cheap? With inventories up and sales down, the climate is right for a bargain on your first or next bike.