Hybrid Cars: Your Complete Buying Guide
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How do hybrid cars work?
What are the different types of hybrids?
Full hybrid electric vehicles (FHEVs)

- Pros: Doesn’t have to be plugged in to charge the battery, so no need for access to a charging source.
- Cons: Has a limited electric-only range, so not ideal for long trips on electric power alone. Does not qualify for federal EV tax credit.
- Best for: Drivers without reliable access to home or public charging.
- Price: Some models start in the high $20,000s to low $30,000s.
- Fuel efficiency: Average 59 MPGe for cars and 53 MPGe for SUVs (city/highway combined).
- Some hybrid models: Toyota RAV4, Highlander, Prius and Camry. Honda CR-V and Accord. Ford Escape and Fusion.
Mild hybrid electric vehicles (MHEVs)

- Pros: Usually cheaper than other types of hybrids.
- Cons: Can’t run on electricity alone, so fuel savings and environmental benefits are limited. Does not qualify for federal EV tax credit.
- Best for: Drivers who want a self-charging hybrid with a lower price tag, even if the fuel savings and environmental benefits are more modest.
- Price: A few models start in the high $20,000s.
- Fuel efficiency: MHEVs can be up to 20% more fuel efficient when compared to the same non-hybrid models.
- Mild hybrid models: Volvo, Audi, BMW, Kia, Mazda and Hyundai, among others — offer vehicles with mild hybrid systems.
Plug-in hybrid electric vehicles (PHEVs)

- Pros: Have a more extended range on electricity alone than other hybrid types, saving on fuel costs. Can switch to gasoline for long trips, eliminating range anxiety. Some models qualify for federal tax incentives.
- Cons: Requires access to charging infrastructure to optimize electricity use. Usually cost more than HEVs or ICE vehicles.
- Best for: Drivers who mainly commute short distances on a daily basis (40 miles or less) but need a gasoline option for longer trips. Also drivers who have access to public or at-home charging on a regular basis.
- Price: Some models start in the low $30,000s.
- Fuel efficiency: Average 89 MPGe for cars and 75 MPGe for SUVs (city/highway combined).
- Some plug-in hybrid models: Toyota Prime Prius, Mazda CX-90, Hyundai Tucson, Chrysler Pacifica, Jeep Wrangler 4xe, Ford Escape and Mitsubishi Outlander.
Do hybrid cars have to be charged?
- Using a standard outlet is considered Level 1 charging, which will take longer and is convenient for overnight charging.
- A faster way of charging is installing a Level 2 charger at home, which can cost several thousand dollars.
- PHEVs can also use public chargers at workplaces, businesses or charging networks like Electrify America, ChargePoint or EVgo. However, many public chargers are Level 3, also called DC fast chargers, and most PHEVs aren’t compatible with these rapid chargers.
The benefits of owning a hybrid vehicle
Hybrids vs. ICE vehicles
- Better fuel efficiency. Because hybrids rely on their electric motor to assist the gas engine, or in some cases to run the car on electricity with no gas, fuel expenses for hybrids are less than for ICE vehicles.
- Less pollution. When in all-electric mode, hybrids don’t produce greenhouse gases. So, overall, their tailpipe emissions are lower than for an ICE vehicle.
- Lower operating costs. Hybrids can be less expensive in ways beyond lower fuel costs. For example, regenerative braking reduces the wear and tear on brakes, so brakes may not need to be replaced as often.
- Potential incentives. Some plug-in hybrids qualify for federal tax incentives when purchased or leased. Such incentives aren’t available for traditional ICE vehicles.
- Higher upfront cost. Because their dual powertrain system is more complex, hybrids usually cost several thousand dollars more than their ICE counterparts.
- Costly repairs. The complexity of hybrid powertrains, when compared to ICE vehicles, can result in higher repair costs. The cost of replacing a hybrid battery can be up to $8,000, but they last an average of 10 years or more, and auto manufacturer hybrid battery warranties are often at least eight years or 100,000 miles.
- Less space. Having both a battery and electric motor on board can reduce passenger and cargo space in some models.
- Driving experience. You might be able to feel hybrid powertrains switch between electric and gas, although this is becoming less of a problem with newer models.
Hybrids vs. BEVs
- Longer range. Because they receive power from a gas engine in addition to an electric motor, hybrids have a longer range than BEVs. If the battery is depleted, a hybrid uses the gas engine to keep going.
- Lower upfront cost. Hybrids usually cost less than all-electric vehicles.
- Faster refueling. If time is a factor, hybrids can refuel faster at a gas station than waiting for a BEV to charge.
- Higher fuel costs. Actual costs vary depending on the price of gas and electricity where you live. However, the U.S. Department of Energy says hybrid drivers can save up to $1,500 a year in fuel costs, compared to BEV drivers at $2,200. That’s a difference of up to $700 annually, which can add up over time.
- More maintenance. With a hybrid, you will still invest time and money in engine-related upkeep, such as oil and fluid changes. This type of maintenance isn’t required for BEVs.
- Higher emissions. Because hybrids do burn gasoline, they have tailpipe emissions. BEVs have none.
Buying and financing a hybrid vehicle
- See if the vehicle you want qualifies for the federal EV tax credit. The tax credit is up to $7,500 for a new car and up to $4,000 for a used one. You can choose to transfer the credit to an eligible dealer in order to realize an immediate discount at the point of sale.
- If you’ll be financing the car, shop for the best auto loan interest rate you can qualify for. Some lenders offer electric car loans or green loans that have rate discounts, and most include hybrid vehicles. Also, get a preapproved auto loan, and if you're buying from a car dealer see if they can beat your preapproved rate.
- Look into other auto deals and incentives from car manufacturers.
- Check into any possible local and state incentives, as well as rebates from your electric company.
- Don’t overspend. Online buying sites such as Kelley Blue Book and Edmunds can tell you a fair price for the vehicle. Also, an auto loan calculator can help determine how much you can spend, at what interest rate and for what loan term, to reach a monthly payment within your budget.
How to choose the right hybrid for you
- Driving habits. The greatest benefit of hybrids comes with city and low-speed driving, when the electric motor and regenerative braking can engage more to reduce fuel consumption. So if you mainly drive short commutes daily, and don’t need a long electric range, an FHEV may be your best option. If you regularly take long highway trips and need more range, consider a PHEV.
- Budget and available incentives. Hybrids start in the $20,000s to $30,000s and go well over $100,000 for luxury models. MHEVs and FHEVs start at the lower end but don’t qualify for federal incentives. PHEVs cost more but may qualify for federal incentives.
- Need for charging access. Even with a shorter electric-only range, FHEVs are the better option for drivers who don’t have time for charging or regular access to home or public chargers.
What’s that acronym?
- BEV: battery electric vehicle. BEVs are all electric, with a rechargeable battery and no secondary source of power. They’re usually just called EVs.
- HEV: hybrid electric vehicle. HEVs have a conventional gas engine and one or more electric motors. They do not plug in for charging.
- ICE: internal combustion engine. Vehicles with traditional gas engines are ICE vehicles.
- FHEV: full hybrid electric vehicle.
- MHEV: mild hybrid electric vehicle. MHEVs have a small electric motor to assist a gas engine. They can’t plug in for charging and aren’t capable of all-electric driving.
- PHEV: plug-in hybrid electric vehicle. PHEVs have a gas engine and battery, and they can plug into an electric power source for charging.