Electric vehicle adoption is rapidly increasing in Australia and more buyers are finding themselves comparing hybrid and EV models side by side. They’re both far more efficient and cost effective than traditional petrols cars but with different working mechanisms, the savings stack up in different areas.
This article compares the savings differences between EVs and hybrids. As you read, consider how these three questions apply to your circumstance:
Will I actually save money with an EV?
Is a hybrid a safer middle ground?
What will cost less over the next five years?
Click ‘Apply Now’ to start our online pre-approval application for EV and hybrid loans.
What’s the Difference?
Before we compare the costs, let’s run through how each vehicle actually works.
A hybrid vehicle has both a petrol engine and an electric motor, with the latter improving the efficiency of the former. Most hybrids charge themselves while driving and don’t require external charging.
Electric vehicles (EVs) run entirely on battery power. They need to be charged either at home or using public chargers.
Both reduce running costs, but in different ways.
The Purchase Price
This is the first difference buyers notice.
You can find EVs at competitive price points, but hybrids do tend to be cheaper. They’re also much more common on the used market and those listings will, of course come at a lower price.
A lower entry point makes hybrid car loan feel much more manageable for some buyers. However, the EV market is becoming more competitive and the price gap is starting to narrow.
Fuel and Charging Costs
Hybrids start at a lower price points, but this is where EVs start racking up the savings.
EVs take no petrol and many owners find the charging costs to be significantly lower than regular fuel expenses. That’s especially true if you mainly charge at home.
Nonetheless, hybrids still deliver noticeable fuel savings. If you’re restricted by apartment charging, long distance travel or regional living, those it’s certainly better than nothing.
Servicing and Maintenance
Maintenance costs are similar to fuel and charging: both offer savings but EVs pull ahead. Without any sort of traditional combustion engine, an EV has fewer moving parts and does not require:
Oil changes
Spark plug replacements
Exhaust repairs
Engine servicing
Hybrids retain a petrol engine and that servicing remains a part of ownership. Over time, an EV will certainly offer greater long term maintenance savings, though a hybrid is still a significant step up from a standard petrol car.
Charging and Convenience
Charging is often thought of in terms of savings, but there’s also an important convenience aspect that you need to consider.
EV ownership works best when charging fits into your routine and lifestyle. That means you will have a home garage, off street parking and/or a shortish daily commute.
But if charging access is difficult, the convenience and flexibility of a hybrid might balance the extra financial gains of a full EV.
Which One Makes More Sense?
There’s no catch all answer to that question. Whether a hybrid or EV is best for you will depend on your lifestyle, budget and driving needs.
Consider a hybrid if you:
Want lower fuel costs without relying (or being able to rely) on charging
Drive long regional distances regularly
Want a lower upfront purchase price
Prefer a familiar driving experience
On the other hand, an EV may make more sense if you:
Have easy access to charging
Want maximum fuel savings
Drive mainly in metro areas
Are thinking long term about running costs and incentives
The smartest choice isn’t the one that saves you the most. It’s the one that comfortably fits into your day to day life AND puts money back in your pocket.
How Our Crew Help WA Buyers Find Loans for Hybrid Cars and EVs
At Loans Unlimited, we’ve seen a huge rise in the demand for electric and hybrid vehicles. Australians are becoming more environmentally and financially conscious and we’re determined to support those goals.
We’ve worked hard to secure market leading interest rate on electric vehicle and hybrid loans with each of our 40+ lenders. Whether you’re comparing EVS and hybrids, looking for pre-approval or exploring low doc options, our crew will help you understand what fits your goals best.
Click ‘Apply Now’ to start pre-approval for electric and hybrid vehicle finance.
Apply for a Full or Hybrid EV Load Online
The key to choosing between a hybrid and an EV is finding the setup that works financially and practically for you.
Click ‘Apply Now’ and get pre-approved for an electric vehicle or hybrid car loan.
