If you’re shopping for a new car in 2024, you might be interested in comparing the benefits of electric vehicles (EVs) vs. hybrid cars. Electric vehicles have been hyped and criticized recently, with some people feeling that EVs are overpriced or too hard to charge. Other people might have heard of EV tax credits, but feel skeptical that they can actually qualify. Some people might have range anxiety about EV batteries, and prefer to buy a hybrid car they can refuel at any gas station.
Let’s cut through the fog of misunderstanding. It’s true that hybrid cars can be cheaper than EVs, and they run on simple old-fashioned gasoline. But owning an EV over a hybrid can give you a few special perks that not everyone might realize.
Here are a few reasons to buy an EV instead of a hybrid car.
1. You can cut your carbon emissions by 78%
The world is getting hotter. Weather patterns are becoming more extreme, from wildfires to hurricanes to deadly heat waves. If you want to fight climate change, owning an EV over a hybrid can help strike the biggest blow against carbon emissions.
According to U.S. Department of Energy data, owning an all-electric vehicle (EV) will reduce the carbon emissions of your driving by 78% compared to a regular gas-powered car. Owning a hybrid is also a good move for the climate, as it reduces your carbon emissions by 45% compared to a standard car. But owning an EV is an even bigger, stronger statement about how willing you are to do your part to fight climate change.
2. EV tax credits (new or used) are easy to get
Hybrid cars don’t qualify for EV tax credits. But if you buy a fully electric vehicle (EV), or a plug-in hybrid vehicle (PHEV), you really can get EV tax credits of up to $7,500 for a new car, or up to $4,000 for a used car.
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It’s true that there are some restrictions and bureaucratic hoops to jump through. To get the full $7,500 new EV tax credit, your car needs to have been assembled in North America, and the EV battery parts need to be sourced from certain countries. Not every well-known EV make and model qualifies for the full $7,500 of new EV tax credits.
But when you consider that EV prices have come down in the past few months, and you add that extra discount from the EV tax credits, there might be some good bargains out there — especially for used EVs. EV tax credits are also easy to process. You can talk with the car dealership to see if your vehicle qualifies, and you can receive the tax credit as an immediate discount when you buy the car. Some other terms apply; your household income must be below a certain level to qualify for EV tax credits.
Learn more about EV tax credits at FuelEconomy.gov.
3. You can refuel your EV at home
If you have a garage or easily accessible plug at your home, you can charge your EV overnight. For many average drivers who don’t have long commutes or who don’t need to drive long distances, just charging your EV at home from a standard household outlet could be enough power to keep your car fueled.
I own a plug-in hybrid electric vehicle (PHEV) that, like an EV, can charge from a standard household outlet inside my garage. The thrill of fueling my car…with my HOUSE… has not yet worn off. I love the convenience and cost savings that comes from recharging my car at home. I rarely have to buy gas for my PHEV. But with a fully electric vehicle, you are liberated from the gas pump forever!
And another benefit of EVs is that they don’t require oil changes. You don’t have to pay for those, or certain other annual maintenance costs that you’d get from a gas-powered car. EVs can save you an average of $1,074 per year on gas, and $600 per year on maintenance.
Year after year as the planet gets hotter, the idea of no longer burning gas or using oil feels more and more attractive to me. It’s true that EVs are not “free” to fuel — you still have to pay for added electricity costs when charging EVs from home, and many public charging stations require payment. But by not buying gas, you can make a big difference in no longer contributing to the climate crisis with your everyday driving
Bottom line
Buying an EV instead of a hybrid car is not the right financial move for everyone. The price of EVs is often higher than the price of hybrids, and EV auto insurance is not likely to be cheaper than hybrid car insurance. Shop around for cheap car insurance before you get your heart set on a new vehicle — whether it’s electric or hybrid.
But if you have room in your budget to pay for car insurance, and you don’t mind paying a bit more for a car that never burns gas, owning an EV over a hybrid can be a good move. Being an EV owner can give you peace of mind that you’re helping reduce carbon emissions more quickly.
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