Global conflicts have fuel prices fluctuating across Australia and more drivers are starting to look at electric alternatives. If you’ve decided to make the switch, a plug in hybrid (PHEV) could be a soft landing. It reduces your fuel costs without going fully electric.
But will you actually save money or is the technology more hype than help? In short, you will save but only if a PHEV suits the way you drive.
PHEVs have a larger battery than a traditional hybrid that can be charged externally. You’ll be able to make short daily commutes using electricity alone and may only need petrol for longer weekend trips.
That’s where the biggest savings come from, but let’s run through a few more. To apply for an electric vehicle loan, click ‘Apply Now’.
The Difference Between Hybrids and Plug-In Hybrids
A standard hybrid charges itself while driving. A PHEV can also do that, but you’ll also be able to charge its larger battery externally, whether at home or with public chargers.
That means that a normal hybrid is still going to rely on petrol, while a PHEV may never use it at all. That could be an important selling point if you’re factoring rising petrol prices into your browsing.
Charging Costs vs Fuel Costs
Electricity obviously isn’t free, but charging does tend to be a fair bit cheaper than filling up at the servo. And if you’re clever about it charging during off peak hours or using solar energy you can maximise your savings. Many PHEV owners find the cost per kilometre far lower than traditional petrol vehicles.
As silly as it may sound, just make sure you actually charge it. Forgetting to charge regularly and relying on the petrol engine just means you’re driving a heavier traditional car. Fuel economy will be worse and your bills might even go up. That also means that if you don’t have access to home charging, a PHEV might not be the car for you.
Are PHEVs Worth It for Long Distance Drivers?
They certainly are.
A PHEV gives you a flexibility that fully electric vehicle cannot offer. You don’t need to rely on or plan your trip around charging infrastructure because once the battery runs low, the engine will take over. Some of the buyers we’ve helped chose a PHEV because of that flexibility. They wanted the lower daily fuel costs but still needed to travel longer regional distances.
It’s worth noting that those savings might not be as significant as they are for urban drivers. Electric systems perform best in city driving where battery efficiency is at its maximum.
The True Cost Goes Beyond Fuel and Charging
PHEV owners financial benefits in other parts of ownership:
Lower servicing costs
Tax advantages and other incentives (depending on the model and your state of residence)
Green car loans with better rates and structures (depending on your lenders)
That said, PHEVs do tend to come at a higher price point than hybrids and traditional petrol vehicles. Our crew are always available to find flexible finance options to help you bridge the gap. Whether you’re after a family SUV or replacing a work vehicle, we’ll match you with the right lender and structure.
So, Will You Save Money with a Plug-In Hybrid?
Yes, it’s more than likely.
If your regular commutes are short and you’re able to charge regularly at home, you’ll dramatically reduce fuel usage and put money back in your pocket. At the same time, you’ll still keep the flexibility of the petrol engine if you need to make a longer journey.
For the right drive, the long term savings can be substantial.
Why WA Buyers Choose Loans Unlimited for Electric Vehicles
Upgrading to a PHEV is a long term lifestyle and financial decision, so having the right finance team behind you makes a real difference.
At Loans Unlimited, our crew are focused on making hybrid and EV finance simple, fast and tailored to you. We work with a panel of 40+ lenders to find competitive options suited to any buyer’s circumstances.
Contact our crew to learn more or click ‘Apply Now’, complete a 4 minute form and get pre approved in 1 hour.
Apply for an EV or Hybrid Car Loan Online
With fuel prices rising, switching to a plug-in hybrid could help you stack up invaluable savings. The Loans Unlimited crew is here to bridge the gap between deposit and purchase price by finding fair and affordable finance.
Click ‘Apply Now’ to start the pre approval process and view interest rates on electric vehicle loans.
