Summary
– Hybrid vehicle market is heating up while electric vehicle market is cooling down
– Hybrids are cheaper upfront compared to fully electric cars
– Maintenance costs are typically cheaper for electric vehicles than gas and hybrid cars
– Insurance costs may be higher for EVs initially, but expected to come down as more data is gathered
– Consider how much you drive when deciding between electric and hybrid vehicles, with EVs being more suitable for shorter commutes
Article
The hybrid vehicle market is currently growing, while the electric vehicle market is experiencing a decrease in interest, according to recent reports. A Gallup poll found that although EV ownership is on the rise, there has been a bigger decrease in the percentage of people expressing interest in buying one. When considering the value of an electric versus hybrid vehicle, there are several factors to consider.
In terms of upfront costs, hybrids are generally cheaper than fully electric cars. The average sticker price for an EV in Q1 was around $55,000, compared to an average cost of around $42,500 for a hybrid. However, when it comes to maintenance costs, electric vehicles are typically cheaper due to having fewer moving parts and lacking features such as an exhaust system or multigear transmission.
Insurance costs can also impact the overall value of electric versus hybrid vehicles. While it may be more expensive to fix an EV after an accident or repairs, insurers anticipate that these costs will decrease as more data on EVs and their repairs becomes available. Additionally, driving costs should be considered when deciding between an electric or hybrid vehicle. If you drive less than 100 to 150 miles per day and have access to charging at home or work, an EV may be a better option. However, for long-range driving or if EV chargers are not readily available on your commute, a plug-in hybrid or mild hybrid could be more practical.
On average, most Americans drive fewer than 40 miles a day, making an entry-level EV with a range of 200 miles sufficient for daily use. While electric vehicles have lower maintenance costs, hybrids may be more cost-effective for those who frequently drive long distances. It is important to consider your driving habits and access to charging stations when deciding between an electric or hybrid vehicle. Ultimately, the better value for you will depend on your individual needs and priorities.
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