Should car buyers choose hybrid or EV?

• Numerous motorists are opting between a hybrid or an electric vehicle for their next car purchase, with cost being a significant consideration.
• Electric vehicle sales remain sluggish, so auto companies are now promoting "consumer choice" instead of aggressively rolling out electric models.
• In addition to cost, driving habits, ownership duration, future expenses, and location should be considered when deciding whether an EV is a better investment.

While there are numerous hybrid and electric vehicle options available on car dealerships, recent news suggests that the market is shifting towards hybrid vehicles. For instance, Ford has recently announced that it is postponing the release of an electric pickup and is instead focusing more on its North American hybrid lineup in the short term.

The euphoria surrounding EVs has waned, as car companies such as Ford, General Motors, Mercedes-Benz, Volkswagen, Jaguar Land Rover, and Aston Martin are scaling back or delaying their electric vehicle plans. Additionally, GM's EV sales remained insignificant in the most recent quarter.

Determining the best value for your money when purchasing a car can be a complex task. Factors such as the initial cost, driving habits, intended ownership duration, potential long-term expenses, and location all play a role in this decision.

To assist car buyers in making the correct choice, here are some tips even when the answer isn't clear-cut, as headlines proclaim hybrid vehicles.

Figure out how much you drive

It is wise to consider your intended use of the vehicle prior to comparing costs.

Are you driving short or long distances to work, and if you drive long distances frequently, do you consider the availability of fast-charging stations along your route? If fast-charging stations are scarce, as they are in many areas of the country, you might be better served with a hybrid where you just pull into a gas station and keep driving, said Sandeep Rao, lead researcher for Leverage Shares, which offers investment funds including several focused on the stocks of EV and traditional automakers.

Despite the federal government's initiative to establish a comprehensive charging network across the U.S., it has not yet been widely implemented. Instead, the focus has been on specific regions such as California, the New York tri-state area, Florida, and Texas. However, the majority of Americans reside in areas between these regions, which limits their access to electric vehicles (EVs). According to Rao, this lack of charging infrastructure is the primary reason most Americans do not own EVs.

In addition to considering the car's potential service needs and nearby maintenance options, he advised taking into account how long you plan to own the vehicle and whether your home set-up is suitable for charging an EV quickly and conveniently. He also inquired about the upfront costs of upgrading your system to enable faster charging, if necessary.

Do the math on upfront cost, EV vs. hybrid

If it's still a toss-up between an EV and a hybrid, consider the upfront costs.

According to Find My Electric, the average price of the top-ten best selling electric vehicles in the U.S. is approximately $53,758, with an average of $48,430 for the low-end version and $64,936 for the high-end version of each model. The prices for these 10 EVs range from $26,599 for the Chevrolet Bolt EV to $99,000 for the most expensive version of the Rivian R1S, according to their data.

While the average starting price for a hybrid car is $33,214, according to iSeeCars.com, the Department of Energy provides a tool to compare up to four vehicles at once. Additionally, you can compare different models based on fuel efficiency.

Search for available auto rebates and incentives

If you're considering an EV but are deterred by the initial cost, explore potential rebates. The federal government offers subsidies of up to $7,500, but qualifying for them is becoming increasingly difficult as more manufacturers are being excluded, according to Rao.

Veloz, a nonprofit organization, maintains the Electric for All website where buyers can search for incentives such as vehicle tax credits and rebates, charging rebates, local utility incentive programs, and other special driving perks for going electric.

You may be able to purchase an EV with a similar price range to a hybrid or internal combustion vehicle, according to Steve Christensen, executive director of the Responsible Battery Coalition, a nonprofit organization dedicated to the responsible management of batteries.

Consider a plug-in hybrid

Rao suggested that another option for those transitioning from gas and diesel-driven cars to battery-powered vehicles is a plug-in hybrid electric vehicle.

According to Progressive Casualty Insurance Company, the main differences between full hybrid and plug-in hybrid cars are the size, cost, and purpose of their electric batteries. Additionally, a plug-in hybrid's electric battery can be recharged at home or a public charging station, while a full hybrid car uses its gas-powered engine to recharge.

The Department of Energy offers a calculator that estimates personalized fuel use and costs for plug-in hybrid owners based on their driving habits, fuel prices, and charging schedule.

Focus on overall cost of ownership, not just upfront costs

Although the initial expenses for an EV may be higher, you could save money in the long run.

A recent study by the University of Michigan found that EVs with a range of around 200 miles can break even with traditional hybrids in five years or less, without any incentives. This was stated by Maxwell Woody, a PhD candidate at the University of Michigan and the lead author of the study.

Electric vehicles with larger batteries, such as midsize SUVs, pickup trucks, and those with a range of up to 400 miles, do not break even with hybrids, even with incentives, according to a study. However, Woody noted that the data is based on a longer history of battery prices, which have decreased dramatically in recent years and are expected to continue falling, so electric vehicles will perform better in the near future.

The cost of doing math on a plug-in hybrid car can vary widely depending on how much you charge versus refueling with gas. If you operate it all-electricity for city driving, your costs could be close to an EV. If you take it on long trips, the costs for refueling could be more similar to a gas vehicle.

Be mindful of maintenance costs when evaluating the total cost of owning an electric vehicle (EV), advised Albert Gore, executive director of ZETA, a group promoting full EV adoption. He referenced a study by Argonne National Lab indicating that scheduled maintenance expenses per mile are substantially lower for an EV compared to a traditional hybrid or plug-in hybrid.

Woody advised comparing apples-to-apples when considering a Nissan Leaf, which is fully electric, with a Honda Civic hybrid, which is also a hybrid.