Electric Vehicle vs Hybrid vs Plug in Hybrid Choosing the Right Eco Friendly Car

How to Decide If a Hybrid, Plug-In Hybrid, or Fully Electric Car Is Right for You

The pandemic has slowed auto production, but notcarmakers plansfor new electrified vehicles. In fact, a few dozen all-new, pure electric models are set to debut by the end of 2024. The rollout ofnew EVs, plug-in hybrids, and traditional hybridsis good news if youre looking for an alternative-fuel vehicle. These models provide energy-efficient transportation whilelowering or eliminating tailpipe emissions, diminishing noise, and reducing operating costs.

But living with an electrified vehicleespecially a pure EVis different from owning a typical gasoline model. So its important to understand how they work, and to match their strengths with your driving needs and preferences.

For instance, should you stick with a traditional gasoline-electric hybrid that never needs to be plugged in? Theyre fuel-efficient, and most are reliable, but they arent emissions-free. Or is a plug-in hybrid more for you? They split the difference between a hybrid and an EV, with a rechargeable battery that provides 20 to 40 miles of electric range before transitioning to regular hybrid operation. Or are you ready to take the leap to an EV? That eliminates the gas engine, but you need a convenient way to recharge.

Below, we explain how the technologies work, plus offer CRs real-world insights into the pros and cons for each type. We also highlight a few models recommended by CR from each category that are smart choices. (See ourEV and hybrid buying guide and ratings.)

Bear in mind that several of the models are relatively newand CR usually advises waiting a year or longer for automakers to work out the bugs. Holding off will also mean more models and EV charging stations, and possibly lower sticker prices. On the other hand, current tax credits, up to $7,500, may phase out while you wait.

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Key takeaways

• Hybrid cars use both gas and electricity, plug-in hybrids have a large rechargeable battery and EVs are electric only.

• Hybrids and plug-in hybrids are generally a better choice if you dont want to plan trip routes in detail.

• EVs are a better choice if you have a lot of charging stations in your area, want to completely get rid of gas costs or have an eye on reducing your carbon footprint as much as youre able.

If you are in the market for a new vehicle, you might be thinking about an entirely new approach to driving that involves fewer or no trips to the gas station. As more car manufacturers unveil new electric-powered models, drivers are pondering making the switch. Data from a 2024 GBK Collective study showed half of American households are considering making their next car a hybrid or electric vehicle.

If you are in that crowd, there is a bigger question youll need to answer. Should you leave some room for gas or go all-in on electric? Compare the upsides and downsides of electric vs hybrid cars before you head to the dealer.

The differences between hybrid and EV

Hybrid cars, plug-in hybrid electric vehicles (PHEVs) and electric vehicles (EVs) are all designed to help you curb or cut fuel costs. However, there are key differences between them to be aware of.

• Hybrid models can use gasoline or electricity as a power source. Theyre equipped with both an electric motor and a gasoline engine that work together to operate the vehicle. They do not qualify for the federal EV tax credit.

• Plug-in hybrid models are similar to hybrid vehicles but have a large rechargeable battery. If you operate the vehicle while the battery is charged up, your gasoline is preserved. Once the batterys charge is low, the gasoline engine kicks in so the car can drive on as a regular hybrid.

• EVs are solely battery-operated and only have an electric motor. You wont find a gas tank or engine inside this vehicle.

When looking at EV or hybrid cars, remember that hybrids tend to cost less upfront than fully electric vehicles. However, EVs and PHEVs might qualify for up to $7,500 in federal tax incentives.

EV or hybrid: How to choose

There is no right or wrong answer when choosing between hybrid vs. electric cars. Instead, you must consider many factors, including where you live, what you currently spend on gas, how committed you are to reducing your carbon footprint and more.

If you dont want to plan out the miles on your route, you feel as though you have range anxiety or may not have many charge stations around, a plug-in hybrid is a better choice for you, says Ronald Montoya, senior consumer advice editor at Edmunds.

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Apps such as PlugShare can help you find local charging stations.

Start with the U.S. Department of Energys plug-in hybrid calculator if youre considering a specific hybrid model. You can share some information on your driving habits and your home power setup. Youll get an estimate of your annual fuel and electricity costs and number of trips to the gas station.

If you are OK with planning your routes in terms of mileage and have a charger at home or work, Montoya says, youre the ideal candidate for an all-electric vehicle. Visit the Electrify America mapto see charging stations near you.

Hybrid pros and cons

As you analyze the numbers from the plug-in hybrid calculator, heres a rundown of hybrid vehicles major pros and cons.

Pros

• You wont worry about running out of power. Because hybrid vehicles can use gas, you will be covered by more than 145,000 gas stations in the country.

• Youll generally spend less money each month. Hybrid vehicles tend to have starting prices than all-electric vehicles. For example, the 2024 hybrid Kia Nero starts at $26,940, while the EV version starts at $39,600 and includes more luxury features even on the basic trim.

Cons

• Youre still going to spend at the pump. Hybrid vehicles dont have a long range for operating on electricity, making gasoline the primary power source for longer road trips. For example, the Environmental Protection Agency sets the Toyota RAV4 Hybrids electric-only range at 42 miles.

• Unlike PHEVs, hybrid vehicles do not qualify for the federal EV tax credit.

• Youre still going to emit plenty of carbon from burning gas. If youre serious about lowering your carbon footprint, you should know that a hybrid cars gas usage will continue to play a role in polluting the planet.

Check your costs: Bankrate auto loan calculator

Full electric car benefits and drawbacks

Even ideal candidates must weigh the benefits and drawbacks of purchasing a new electric vehicle.

Pros

• You can skip out on paying high gas prices. As of Feb. 9, 2024, the average cost of a gallon of regular gas is $3.17, according to AAA. Meanwhile, the price of home charging an electric vehicle is equal to $1.41 per gallon.

• If purchased new, qualifying fully electric vehicles qualify for up to a $7,500 federal tax credit. There is also an EV charger tax credit.

• Youll make a positive impact on the planet. As businesses and governments try to figure out how to tackle climate change, individuals can do something about it, too. If your goal is to completely get off fossil fuels, youll want an EV, Montoya says.

• Electric car prices are dropping. As of December 2023, Kelley Blue Book listed the average new EV price at $50,798 and gas vehicles at $48,759, so EVs are more closely matching gas cars in price.

Cons

• You might need to search for a place to charge your car. Youll find that both coasts of the U.S. have the most charge stations, Montoya says. Its when you get into the north-central states like Montana, North Dakota and Wyoming where they become more sparse. But charging stations are multiplying rapidly.

• Charging can be time-consuming. While fast public charging stations are becoming more common, basic charging stations take a long time to deliver the juice to go far. For example, 120V charging stations only grant two to five miles of driving for every hour of charging.

• Electric cars tend to come with higher prices than equivalent gas models. These higher prices could make financing an EV more difficult if you have bad credit.

• Your insurance bill may be more, too. A study from financial technology company Self showed that insurance costs for EVs average more than $1,400 higher than gas cars.

• Range anxiety can be a very real problem. If you dont like plotting trip routes or have an unpredictable driving schedule, you could find yourself far from a charger when your car battery runs low.

Learn more: Gas vs. electric vehicles: Which is cheaper to own?

The bottom line

Auto loan rates are projected to decrease for good-credit borrowers throughout 2024. If you want to jump on these lowering rates, assess EV or hybrid vehicles to decide which is best for you.

Its equally important to shop around for lenders and compare loan options today to see if you can lock in a competitive deal on financing for your new car. Also, check out Tenet, a car loan company that funds EVs and hybrids.

Hybrid vs plug-in hybrid vs electric cars: which electrified vehicle is right for you

There are big advantages for company car drivers, too. Recent changes to company car tax mean that running a PHEV could save you thousands. From6 April 2020, plug-in hybrids with CO2 emissions of less than 50g/km and an official WLTP electric range of 30-39 miles are subject to a Benefit in Kind (BiK) tax rating of just 10 per cent. An equivalent petrol or diesel car could be at least 30 per cent higher; the longer the EV range, the greater the saving, too.

Youll need to be careful, however; regular long journeys dont suit the nature of a plug-in hybrid, because youll inevitably have to rely heavily on the cars petrol or diesel engine and when you do that, youre just lugging around a big, heavy battery pack without any tangible benefit.

Do this too frequently andyour fuel economy will suffer, which negates the bonusof the lower BiK tax.

Electric

The governments goal is to encourage the take-up of pure-electric vehicles, so its here youll find the greatest incentives. If an electric car fits your lifestyle, there are potentially huge savings to be made.

While both PHEV and EV models are eligible for the Electric Vehicle Homecharge Scheme giving you up to 350 off the cost of a home wallbox charger only pure-electric vehicles qualify for the governments plug-in car grant. There are a few exceptions, but if your new car costs less than 50k, you should be eligible for up to 3,000 off the price.

On top of this, electric cars are currently exempt from Benefit in Kind (BiK) company car tax. This rises to one per cent in 2021, and two per cent in 2022, but even then youll be paying a fraction of what you would for a like-for-like petrol, diesel or plug-in hybrid car. EV drivers pay no road tax, either.

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If you're interested in buying a new car with a focus on the latest fuel-efficient technology, then you're probably trying to choose between a hybrid, plug-in hybrid or an electric vehicle. They all have their pros and cons and suit people differently, so which one is for you?

Hybrid

Full hybrids are vehicles that can travel a considerable distance using both electric and petrol motors. A hybrid vehicle will almost always be able to charge its own batteries using the petrol engine. In some cases, this is all the petrol engine is there for to recharge the batteries, which power the electric motors. In other types of hybrid vehicles, the petrol motor drives the wheels directly, but an additional battery/motor combination adds some electric drive.

In reality, many of us driving around the cities find ourselves in stop start scenarios. If youre driving a hybrid, its during these times where youre able to utilise this energy by storing it in the hybrid battery. Hybrid vehicles gain battery charge during the initial stage of braking or through deceleration which is then stored for use in its battery for use during cruising and low load driving. When the engine is not needed, it simply shuts down.

The Toyota Prius is by far the most common hybrid in New Zealand and its easy to see why. Its cheap to run with fuel consumption under 5-litres per 100km, spacious interior, solid reliability and low maintenance costs.

Plug in Electric Vehicle (PHEV)

Plug-in hybrid cars are exactly what their name suggests they're hybrid cars that can be plugged in. Essentially, these models use two different powertrains, both of which can drive the wheels. There's an electric motor that enables drivers to travel a certain distance based on the capacity of the batteries and there's a normal petrol engine that kicks in once the electric battery is depleted. The range of a PHEV is generally 30-50km perfect if you dont want to consume fuel on short journeys, even better if your daily commute to work and back falls within range.

Plug-in drivers get the best of both worlds, electric-vehicle efficiency around town and traditional car range for longer trips. Some of the more common PHEV vehicles on New Zealand roads include the Mitsubishi Outlander, Hyundai Ioniq, Kia Niro and Toyota Prius.

Electric Vehicle (EV)

Electric vehicles offer several advantages over plug-in hybrids. The main attraction is that EVs benefit the environment more than PHEVs, since they don't use any fuel at all. That's a big deal for consumers looking to minimise their carbon footprint as much as possible.

Additionally, EVs help drivers save more money on running costs, since they don't use any fuel. They also offer a longer electric-only range than PHEVs. That means drivers who want to cruise for as long as possible without using a drop of fuel will be better served with an EV than a plug-in.

Of course, there are some drawbacks to EVs, the largest being range. As these vehicles rely solely on their energy that is stored in their batteries, drivers must be mindful to monitor their range at all times. Generally, vehicles being released today offer ranges around 200-300km while some of the older EVs are around the 100km mark.

Drivers with a long commute, or those who routinely travel more than 150-200km without overnight stops, would be wise to consider a plug-in hybrid instead of an EV.

Some of the more common EV vehicles on New Zealand roads include the popular Nissan Leaf and Hyundai Ioniq and Tesla Model S.

With so many vehicle manufacturers committing to an electric future, its important to keep up to date with the changing technologies. Keep an eye on the AA Car of the Year awards with the inclusion of the Best in Class EV/Plug-in Hybrid category for the first time where well announce the PHEV/EV which is deemed the best in the new car market.