Which Is Better: An Electric Car or a Hybrid?

Your sedan has been good to you, but the unusual hum of the engine has you worried.

Whenever you catch a glimpse of the sleek silhouette of an electric or hybrid vehicle, your mind goes places — you may see yourself behind the wheel cruising hum-free, recall your neighbor raving about their new fuel-efficient buy, or dream of a world where you don’t have to constantly deal with sky-high gas prices.

The U.S. share of electric and hybrid car sales reached a record in the third quarter of 2024, coming in at 21%.

The buzz is real. You’re ready to make moves. And you’re on the right track, putting cost of ownership top of mind. But, when it comes to electric vehicle (EV) vs. hybrid, which do you choose to replace your once trusty gas car? With the automotive world shifting gears, it’s normal to wonder and to maybe even feel stuck.

We’ll break down the facts and figures for both to help you find a ride that fits your lifestyle and budget.

What’s the Difference Between Electric Cars and Hybrids?

You know that a standard car, with an internal combustion engine, powers itself with gasoline. With an EV, you’re looking at a future with less gas or none at all. 

“Electric” or “EV” are often used as catch-all terms for any cars that run on electric power, but there are some key differences between electric cars and hybrid vehicles. Let’s look at the different types:

• The classic or regular hybrid: Think of these as your everyday gas cars, but with a twist. They have an electric motor and battery in addition to a gas engine, and they switch between the two or use both at the same time.

• The plug-in hybrid (PHEV): Imagine the classic hybrid but with a bigger battery and a plug for charging. You can drive a decent chunk of your daily commute on electric power. However, if you’re taking a road trip across states, the gas engine kicks in. 

• The all-electric vehicle: This car only has a battery and an electric motor. Plug it in to a power source, and you’re on your way.  

Choosing Your Ideal Car

All three car types offer unique advantages. Let’s learn more about each one.

Side-by-Side Comparison of Electric and Hybrid Car Features

Questions to Get You Started With Your Car Search

Just getting started with your car search? Here are some questions to steer you in the right direction.

Environmental Impact

Q: Is your main concern zero emissions?

A: Choose an all-electric vehicle.

Performance

Q: Are instant acceleration and a sporty driving experience important to you?

A: Choose an all-electric vehicle.

Uncertainty

Q: Are you thinking of going electric, but not ready to fully commit to an all-electric car? 

A: Choose a plug-in hybrid.

Range Flexibility

Q: Do you want a car that combines electric range and a gas engine so you can go the distance? 

A: Choose a plug-in or classic hybrid.

Upfront Cost

Q: Are you on a tight budget and looking for the most affordable option?

A: Choose a classic hybrid.

Charging 

Q: Would you rather not worry about an external charger?

A: Choose a classic hybrid.

Cost of an Electric Car vs. a Hybrid

Let’s talk numbers.

You know you want the car but you’re wondering, “How much is this going to set me back?”

The answer, like with most major purchases, is it depends on your needs, wants, and budget.

Generally, you’ll find that electric vehicles tend to have a higher sticker price than hybrids. As of January 2025, the range for an EV spans $30,000 to $100,000, with an average price of $55,614. Basic hybrids, on the other hand, range from $15,000 to $55,000.

Planning for the Purchase

The good news is that you don’t have to shoulder the cost alone. There are federal and state incentives for prospective EV and hybrid owners. But these incentives can change from one administration to another and with purchase cost, among other factors. So, it’s essential to do your research to see if and how you can benefit.

Next, we’ll look closer at these incentives as well as steps you can take to prepare for your big purchase.

Federal Incentives

Since 2009, the federal government has offered a tax credit for new clean vehicles. As of early March 2025, this incentive is still in place. You could get up to $7,500 if you purchase a plug-in hybrid or all-electric vehicle. Taking advantage of this tax credit now can lower your tax burden for the year.

Here’s how it works: 

The credit is split in two parts — $3,750 for meeting battery component requirements and $3,750 for meeting critical mineral requirements. This means to receive the full $7,500, the car has to meet both sets of requirements. This is the government’s way of encouraging eco-friendly driving and responsible sourcing. 

Other key considerations: 

• The EV you’re planning to buy must be for your own use.

• It should have a battery capacity of at least seven kilowatt hours (kWh). 

• It should have a gross vehicle weight rating of less than 14,000 pounds.

• It should come from a qualified manufacturer, with final assembly taking place in North America. 

Of course, there are income limits and vehicle price caps, too. 

The government also offers a tax credit of up to $4,000 for used EVs, so if you’re planning to go the pre-owned route, you may be in luck. Just make sure the car costs no more than $25,000. 

To get up-to-date information on all things clean vehicle tax credit, visit the IRS, Department of Transportation, or Department of Energy websites. And remember, you won’t see a cent in savings until after you file your taxes.

State Incentives

These incentives vary, with some states and cities offering rebates for the purchase and installation of home chargers.

Saving For an Electric Car or Hybrid

While electric vehicle incentives and rebates offer valuable discounts, they’re subject to change and may not always be around. Coming up with a smart savings strategy is a crucial step to getting your dream car.

The 20/4/10 rule is one place to start. The idea is to put a down payment that’s at least 20% of the vehicle’s purchase price, finance it for no more than four years, and keep your total transportation expenses (including car payment, insurance, maintenance, and gas) at 10% or less of your gross monthly income.

Let’s say you’re eyeing a $40,000 EV. Aim for an $8,000 down payment to help reduce your monthly payments and interest. It’s like getting a head start in a race.

Consider setting up a sinking fund for your purchase and automate your contributions, no matter how small. They’ll add up overtime. You could open a high-yield savings account with an online bank or credit union — that way you’ll be making money on your money.

Finally, don’t forget the used car market. Buying used (or certified pre-owned) can save you thousands because EVs depreciate, too. In fact, used EVs became cheaper than their traditional gasoline counterparts for the first time in February 2024.

Kick off your planning by weighing the pros and cons of buying new or used and consider the hidden costs of ownership, which we’ll address shortly.

Ratings

There are other factors to think about beyond the new vs. used debate — and resources like Consumer Reports, Kelley Blue Book, and Edmunds can be a big help. All of them run independent tests and develop ratings across areas such as safety, efficiency, and cost savings.

Maybe you’re looking at a hybrid from a legacy automaker like BMW and one from a novel brand like VinFast. Apart from price, reliability is make or break for you. A thorough search across all three sites can tell you all you need to know before you hit the dealership.

Look for gold stars and high overall ratings to determine if the price is worth it.

Hidden Costs of EV Ownership

While there are perks to owning an electric car or hybrid, there are some expenses that you might not think of right away. Let’s break down the true cost of owning an electric vehicle:  

Electric Charging Systems

First on that list is home charging. While having an at-home charger makes EV ownership a lot more convenient, there’s a price to pay. 

Let’s start by looking at different charging levels for plug-in hybrids and all-electric cars.

Level 1 charging: Using a standard 120-volt outlet, level 1 chargers can get your battery to 80% in 40 to 50 hours. It’s the slowest charging level, but it’s a great option for topping off overnight. 

Level 2 charging: With a 240-volt outlet, a level 2 charger brings your car’s battery to 80% in four to 10 hours. Level 2 chargers can be found around town, like at offices or shopping mall lots.

Then, there are direct current (DC) fast chargers. If you’ve ever seen or heard of Tesla’s Supercharger, then you may know a little bit about DC chargers. Give it an hour, and a DC charger will get your battery to 80%. They’re mostly stationed in public places.

How much you spend on a home charger will depend on which one you find most useful and how much time you’re willing to wait for your car to charge. Levels 1 and 2 are the options most people consider.

• Most manufacturers include this charger with your purchase, but if they don’t or you want a spare, you can easily shop for a level 1 EV charger. There are several options within the $100 to $300 range.

• Level 2 chargers usually cost more. If you value a little more speed, prepare to invest between $500 to $700. Depending on where you live, you’ll also have to pay licensing and/or permit fees prior to installing your charger, so factor that and installation charges into your budget. Labor for level 2 installation is priced as low as $200 to upwards of $1,500.

Battery Replacements

Just like a standard car battery, EV batteries will start to fail after a while.

Hybrid batteries are designed to last for eight years or around 100,000 miles, while some all-electric batteries have a lifespan of up to 20 years. 

Cold weather can contribute to reduced battery performance. When you hear unusual noises, notice a sudden drop in performance, or see a warning light on your dashboard, it’s probably time to get a new battery.

For all-electrics, you could be looking at a bill of $6,500 to $20,000, depending on the model, battery size, and more. The battery replacement cost for a plug-in hybrid car is around $2,000 to $8,000.

But don’t panic. If your car is still under warranty, battery replacement is likely included. Most manufacturers build in an eight-year warranty on batteries. Be sure to ask when shopping.

And while it sounds like a major expense, remember, there are plenty of pricey repairs associated with any car that has over 100,000 miles.

Finally, keep in mind that supply chain disruptions can make batteries and other EV parts hard to find, potentially leading to expensive post-accident repairs and reduced resale value. These disruptions happen because battery components are available in just a few countries, plus climate and political conditions can limit free flow.

Extending Battery Life

There are some simple actions you can take to extend the life of your car’s battery:

• Don’t miss routine servicing. 

• Practice moderate charging habits. This means making sure that you regularly charge your battery to at least 80% and avoid letting it drain to 0%. If you have to store your car for an extended period, keeping the battery at 50% is a good practice. Your car’s manual might include more guidelines. If you’re charging your car at home, overnight is typically the best time to do so.

• Avoid extreme temperatures if you can. Schedule departure times during the winter so your car can heat itself before you get behind the wheel, and limit fast charging during this season.

• Practice gentle driving habits, like minimizing high-speed driving.

• Keep your EV’s software up to date.

Depreciation

One factor that’s easy to overlook when considering an electric or hybrid car is depreciation. EV technology is in a constant state of flux. When new models with longer ranges, faster charging, and more advanced features hit the market, the value of older models tank. It’s like how a new smartphone makes your older version feel outdated.

So, what’s the solution? Always factor depreciation into your long-term cost planning. And remember, while electric and hybrid cars depreciate pretty quickly, the long-term savings on gas and maintenance can help offset some of that loss.

Long-Term Financial Impact

Now that you’ve made it past the sticker price and potential hidden costs, let’s dive into the long-term financial impact of choosing an electric vehicle or hybrid. This is where you start to see the savings add up, month after month and year after year.

Fuel Savings

A 2024 study from the National Resources Defense Council (NRDC) and Atlas Public Policy found that EVs cost less than comparable gas cars over a seven-year ownership period, regardless of vehicle type (i.e., sedan, SUV, and truck). What’s even more interesting is that EV owners spend up to 65% less on fuel than gas car owners.

Let’s consider a scenario of our own: If you drive an average of 13,500 miles a year and gas prices average $3.10 per gallon (and your gas car gets 26 mpg, the 2024 average gas mileage for light-duty vehicles in the United States), switching to an all-electric car could mean you will shell out $1,612 less per year for gas. Here’s how we came up with that number:

• Number of gallons: 13,500 miles ÷ 26 miles/gallon = 519.23 gallons. We rounded that up to 520 gallons, for efficiency’s sake.

• Cost of gas fuel: 520 gallons × $3.10/gallon = $1,612

But remember, to figure out your overall fuel savings, you need to consider how much you’d pay to charge that EV at home. The average EV battery gets 2-4 miles per kWh. We’ll go with the median/average of that, which is 3 miles per kWh. And the average cost of residential electricity in the U.S. per is currently 16.26 cents per kWh. So, the same 13,500 miles per year from the gas vehicle example would cost about $732. Here’s our math for this case:

• Number of kWh: 13,500 miles ÷ 3 miles/kWh = 4500 kWh. 

• Cost of electricity fuel: 4500 kWh × $.001626/kWh = $731.70. We rounded that up to $732.

So, the difference between the average gas vehicle and average electric vehicle driven the average number of miles per year, using average fuel costs for charging at home could be approximately $1612 - $732 = $880. Over five years, that would be $4,400 in savings.

But remember, different gas and EV vehicles have different fuel mileages. Additionally, not everyone is paying the average price for gas or electricity, in particular those who do at least some charging at paid higher-speed charging stations. So, the $4,400 per year in savings is a great goal, but it won't be realized by every EV driver. 

A more realistic range of fuel savings comes from Consumer Reports. Data gathered in 2023 indicates that hybrid and EV owners can save  between $2,102 to $3,823 in fuel over five years, with EVs giving numbers on the higher end of the range.

Of course, exact savings will vary depending on your driving habits, electricity rates, and the specific model, but the trend is clear — fuel savings is one of the biggest advantages of going electric or hybrid and can be leveraged if you charge at home during off-peak hours.

Maintenance Savings

It’s not just about fuel. Electric cars typically have lower maintenance costs. There are no oil changes, spark plug replacements, or exhaust system repairs to worry about. While hybrids have a gas engine, they benefit from regenerative braking, which reduces wear on the brake pads.

Here’s another scenario: You’ve had your gas-powered sedan for 10 years and driven a total of 120,000 miles. During that time, you’ve probably spent at least $560 and up to $1,200 on oil changes alone, assuming the average price of the service is anywhere between $35 and $75, and you’ve gotten a change every 7,500 miles. Here’s our math for this:

• Number of oil changes: 120,000 miles ÷ 7,500 miles per oil change = 16 oil changes. 

• Total cost of 16 oil changes, low average to high average: 16 × 35 = $560 to 16 × 75 = $1200

• Total oil change cost range over 10 years: $560 to $1200

Then, there’s at least one or two spark plug replacements that probably cost you a couple hundred dollars. These parts are typically replaced every 30,000 miles.   

As you can see, routine maintenance costs add up quickly. 

You also had to deal with one-off repairs. The loud noise from your exhaust system prompted you to check your muffler — and sure enough, after 40,000 miles, it was damaged.  To get that fixed, you spent around $400, and that was a steal.

Maintenance and repair costs for gas cars vary depending on make, model, mileage, equipment replacement price, driving and maintenance habits, and the complexity of service needed. While there’s no way of providing an exact total, one thing’s for sure — EVs can be cost-effective.

You’ll need a tire rotation, brake check, air filter and battery coolant change, and more as part of EV servicing. As a general rule of thumb, you should schedule routine servicing one to two years apart. Based on cost estimates from GreenCars, you can anticipate saving around $4,600 on maintenance (and repairs) over the lifetime of your EV comparted to a gasoline car.

That means more money for you to put toward insurance, a home charger, cosmetic upgrades, or non-auto priorities.

EV Financing

While financing is a popular option among Americans, EV loans can be a bit tricky. They generally come with higher interest rates compared to gas car loans. Lenders aren’t trying to rain on your eco-friendly parade — they’re just being extra cautious. With gas cars, they have decades of data to assess risks and set interest rates. However, because EVs are relatively new, lenders are still trying to figure it out.

This isn’t cause for alarm, as there are still ways to secure a good deal on an EV loan. Shop around and compare rates between lenders. Pro tip: Credit unions have a reputation for offering competitive rates and personalized solutions.

Should I Lease?

“To lease or not to lease?” is an important question, and there’s no one-size-fits-all answer. 

Leasing can be tempting since it comes with low monthly payments and the opportunity to upgrade to a newer model every few years. But it’s important to compare the advantages and disadvantages before taking the plunge. 

Leasing could be a good option if you want to drive a new car with the latest technology, without committing to ownership. There’s no resale hassle. Plus, some automakers may offer incentives if you decide to lease.

Leasing may not work for you (or your wallet) if you want to keep the car for a while or if it’s unreliable. Leasing can also subject you to early termination fees, wear and tear charges, and mileage limits.

Tips for First-Time Hybrid and EV Buyers

Maybe you’re still feeling overwhelmed by the decision you’ve yet to make. Follow these pro tips to narrow down your options.

1. Take a test drive

Don’t just take a quick spin around the block — try out your daily commute and test out the regenerative braking technology. Take as many test drives as you need. 

2. Become a charging connoisseur

Map out your local charging stations. Are there any close to your office, home, and regular hangout spots? Are they the right type for your car? Learn EV charging terms like kWh and DC fast charging. You’ll also want to get familiar EV charging apps to better understand pricing. If you decide you want an at-home charger, start saving. 

3. Ask lots of questions

Does your best friend have a PHEV? Maybe, your neighbor recently made the switch to an EV. Don’t be afraid to ask them questions. Dealerships are there to help, too. Ask about charging times, battery warranties, maintenance schedules, and anything else that comes up in your research. The more you know, the more confident you’ll feel about your purchase.

4. Say yes to the tech, but don’t forget the basics

EVs and hybrids are known for their cool tech features, but don’t overlook the fundamentals. Check the tire quality, brakes, and safety ratings. 

5. Consider your lifestyle, not the hype

That new EV has all the bells and whistles, but does it fit your lifestyle? Maybe you need a lot of cargo space. Choose a car that meets your needs, not the one that’s trending online.

FAQs about Electric and Hybrid Cars

These common EV questions can also help you choose wisely.

How much does it actually cost to charge all-electric cars and plug-in hybrids?

The cost depends on a few factors. The first is where you charge. Charging at home is the cheapest option, especially if you do so during off-peak hours. Pricing at public charging stations can vary widely, from free to $30 for a fast charge. The next factor is the charging level, followed by battery size. A larger battery will cost more to charge from empty to full. Then, there’s electricity rates, which vary by location and time of day. Just like you’d scout out the gas station with the cheapest prices, be strategic about charging your car.

Are EVs and hybrids expensive to insure?

While it varies, insurance for EVs can be pricier than that of gas-powered vehicles due to the more complex build and parts. Generally, hybrids cost less to insure than fully electric cars, but they still cost more than a standard gas car. That’s why it’s important to shop around for providers with the same diligence as when buying a car.

Do hybrids last longer than electric cars?

It’s not really a question of which lasts longer, but rather which parts stand the test of time. Hybrids have both a gas engine and electric motor, so they have the potential for more wear and tear. Since EVs don’t have a gas engine, they have an edge in terms of overall longevity, but their battery packs degrade overtime. 

The lifespan of both vehicles depends on your driving habits, maintenance, and the quality of components used to build the car.

Are hybrids more reliable than EVs?

This is a bit of complex question because reliability depends on many factors such as battery health, maintenance, driving habits, and whether the car is made of durable components. However, recent data from Consumer Reports shows that on average, hybrid vehicles have fewer reported problems than all-electric cars thanks to their well-established gas engines. If you’re leaning toward an EV, not to worry — the reliability gap is growing smaller as automakers upgrade EV technology.

Which all-electric car or hybrid car has the longest range?

We’ve got comparisons among the 3 types of electric vehicles in our table here, and the exact answer depends on the model and year of the vehicle. But in general, newer vehicles typically take the crown for the longest range (300 or so miles on a full charge) among all-electrics, as they rely solely on EV battery capacity — and automakers are still making improvements to battery packs. PHEVs offer a balance of electric-only range and gasoline backup, and can also go for hundreds of miles. Classic hybrids combine an electric motor’s efficiency with the tried-and-true gas engine, allowing for long-distance driving comparable to that in a gas vehicle.

The Takeaway

There you have it — your roadmap to navigating the world of electric cars and hybrids. We’ve explored the pros and cons of each option, from the price tag to long-term savings. Now, you’re ready to decide. Whether you’re married to the idea of a plug-in hybrid with lower fuel costs or the latest all-electric model from your favorite automaker, make use of a trusted car-buying service.