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Electric vs Plug-in Hybrid – which technology is right for you?

6 min to readElectric vehicles
From charging habits to towing, we’ve had a look at the pros and cons of the most popular electrified vehicle options to see where they fit best.
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The UK is phasing out new combustion-engine cars and vans by 2035, and that transition is happening in stages. Drivers have a growing choice of plug-in hybrid and electric vehicles, alongside traditional petrol and diesel options, and both technologies have specific advantages. Here are some important considerations if you’re making that decision.

1. How often do you travel long distances?

High-mileage drivers needn’t miss out on going electric. Plenty of new cars can travel more than 200 miles on a full charge, usually with the ability to recover 80% of that in around half an hour at the fastest chargepoints. According to Zap-Map, there are 12,500 of these ‘rapid chargers’ in the UK [1], and most are conveniently located close to major routes. The downside is they’re among the most expensive places to charge.

Plug-in hybrids have pros and cons. They have a much shorter electric range (typically between 40-60 miles) but can also refuel like a petrol or diesel car if you’re going further. Although you’ll still get some electric assistance in hybrid mode, it’s the least efficient way to use them. Independent testing by Emissions Analytics showed average economy of 37.2mpg for a sample of plug-in hybrids once their electric range had been depleted [2].

In Summary: It’s marginally easier to cover long distances in a plug-in hybrid than it is in electric car, but it can also be much more expensive. High-mileage drivers will find their average fuel efficiency isn’t much better than a petrol or diesel vehicle, and (if they can charge at home) they’ll be doing less of that journey on cheap electricity than they would in an EV.

2. Are you a company car driver?

The company car tax system is designed to incentivise cars with low CO2 emissions at the tailpipe – especially if they’re 50g/km or less, which includes most plug-in hybrid and all electric vehicles. In the 2022/23 tax year, almost half (47%) of company car drivers had a vehicle with CO2 emissions between 0g/km and 50g/km [AA].

Drivers pay Benefit-in-Kind based on their income tax rate (usually 20% or 40%) [3] and a percentage of the car’s list price, weighted by its CO2 emissions and (for plug-in hybrids) electric range. That percentage is usually at least 24% for a petrol or diesel car, compared to 2% for electric and between 8% and 14% for most new plug-in hybrids.

It’s an incentive large enough to outweigh the still-higher list price, as the following like-for-like examples show:

Electric vs Plug-in Hybrid Screenshot

In Summary: Company car drivers (including those on salary sacrifice schemes) can make a sizeable tax saving by opting for a plug-in hybrid. However, the biggest incentives are reserved for battery-electric vehicles.

3. Where will you charge?

The cheapest and most convenient place to charge a plug-in hybrid or electric car is at home. However, there’s a growing network of on-street chargepoints being rolled out for drivers who don’t have their own driveway [4], and some companies provide charging facilities for employees too. Home, work and on-street charging is all backed by grant funding to help encourage drivers to switch.

Longer electric vehicle ranges and faster charging speeds means it’s increasingly easy to make do without your own chargepoint. In England cars travel an average 18 miles per day [5] and it’s common for large shops and city centres to offer charging facilities, augmented by faster units for short top-ups. Excluding holidays, a 200-mile range could last all week.

Although they have a combustion engine, easy access to charging is perhaps even more important for plug-in hybrids as they’re at their most efficient when driven mostly in on battery power. Charged every day, a plug-in hybrid could be more efficient than its published figures – if the charging cable is rarely used, it could be less fuel efficient than a diesel or petrol car.

In Summary: If you can’t charge at home or work, a plug-in hybrid could be a costlier option than a battery-electric vehicle. Public chargepoints are usually more expensive than plugging in where you park, and you’re likely to be using the combustion engine more often.

4. How often do you drive into London?

London Congestion Charge exemption criteria have become progressively tougher since the scheme was introduced in 2003. The Greener Vehicle Discount is only available for cars which emit 0g/km CO2 at the tailpipe, which means plug-in hybrid drivers have to pay the £15 daily charge.

However, this only offers a short-term advantage for electric cars. The discount will be removed altogether on 25 December 2025, which means all cars will be charged to enter the zone [6].

In Summary: Changes to the Congestion Charge will mean it’s much more expensive for non-residents to take a plug-in hybrid into London compared to an electric vehicle. This could also set a standard for other urban areas to follow over the coming years.

5. Do you need to tow?

A heavy trailer will reduce the range and efficiency of every car, regardless of what’s under the bonnet, but electric vehicles have some unique challenges. Independent testing has showed that pulling a caravan can halve the range of an electric car [7] and charging spaces often aren’t designed with trailers in mind.

Plug-in hybrids bypass some of those compromises. They can be topped up at a normal fuel station and usually have a higher maximum towing capacity than a similarly sized battery-electric car. Some, but not all, of them can tow as much as an equivalent petrol or diesel vehicle. For example:

Electric vs Plug-in Hybrid Screenshot No2

To find out more about towing with an electric car, click here

In Summary: Lots of new electric cars can tow trailers, and instant pulling power means they’re well suited to it. However, it means sacrificing range and adding frequent charging stops during a long journey. If you’re towing regularly, a plug-in hybrid might make more sense – and there’s still merit in considering a diesel, too.

Could an electric or hybrid vehicle work for you?

To find out more about which vehicle type might suit your needs, visit our Driver EV Tool, available here.

REFERENCES:

[1] Zap-Map. (2022). How many charge points are there in the UK. [online] Available at: https://www.zap-map.com/statistics/#region [Accessed 18 Jul. 2024].

[2] Emissions Analytics. (2019). Plug-In Hybrids Without Behavioural Compliance Risk Failure. [online] Available at: https://www.emissionsanalytics.com/news/2020/1/8/plug-in-hybrids-without-behavioural-compliance-risk-failure [Accessed 18 Jul. 2024].

[3] HM Revenue & Customs. (2024). Benefits in Kind Statistics: June 2024. [online] Available at: https://www.gov.uk/government/statistics/benefits-in-kind-statistics-june-2024/benefit-in-kind-statistics-commentary-june-2024#company-cars-by-cosub2sub-emissions-and-fuel-type [Accessed 18 Jul. 2024].

[4] HM Revenue & Customs. (2021). Company car benefit – the appropriate percentage (480: Appendix 2). [online] Available at: https://www.gov.uk/guidance/company-car-benefit-the-appropriate-percentage-480-appendix-2 [Accessed 18 Jul. 2024].

[5] Office for Zero Emission Vehicles. (2021). Government powers up electric vehicle revolution with £20 million chargepoints boost. [online] GOV.UK. Available at: https://www.gov.uk/government/news/government-powers-up-electric-vehicle-revolution-with-20-million-chargepoints-boost [Accessed 18 Jul. 2024].

[6] Department for Transport. (2023). NTS0901: Annual mileage of cars by ownership, fuel type and trip purpose: England, 2002 onwards. [online] Available at: https://assets.publishing.service.gov.uk/media/64e8c590691aa3000da56e3c/nts0901.ods [Accessed 18 Jul. 2024].

[7] Transport for London. (n.d.). Discounts and exemptions. [online] Available at: https://tfl.gov.uk/modes/driving/congestion-charge/discounts-and-exemptions [Accessed 18 Jul. 2024].

[8] Norsk Elbilforening. (2019). The very first test of three electric cars with caravans. [online] Available at: https://elbil.no/the-very-first-test-of-three-electric-cars-with-caravans/ [Accessed 18 Jul. 2024].

[9] Mercedes-Benz. (n.d.). GLE SUV and Coupe e-Brochure. [online] Available at: https://tools.mercedes-benz.co.uk/current/passenger-cars/e-brochures/GLE-SUV-AND-COUPE-0223.pdf [Accessed 18 Jul. 2024].

[10] Mercedes-Benz. (n.d.). EQE SUV e-Brochure. [online] Available at: https://tools.mercedes-benz.co.uk/current/passenger-cars/e-brochures/eqe-suv.pdf [Accessed 18 Jul. 2024].

Important information:

This blog was originally published on leaseplan.com website. The views expressed may no longer be current and any reference to specific vehicles or products is for reference only. This information is not a personal recommendation for any particular vehicle, product or service - if you are unsure about the suitability of a product, you should consult with an expert.

Published at 8 August 2024
8 August 2024
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