Lessons Learned From a Long-Term Owner of Hybrids and EVs

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.

Want the lowdown on the real cost of ownership for EVs and hybrid cars? See why electric vehicles and plug-in hybrids can be more affordable than you think. [[{“value”:”

I am a long-time owner of hybrid vehicles and plug-in hybrid electric vehicles. Over the past few years, my family has owned a Ford Fusion Hybrid, a Toyota Prius Plug-in Hybrid, and a Toyota Sienna Hybrid.

I love driving hybrids (especially my plug-in Prius) because they get great gas mileage — and when the plug-in hybrid is in full EV mode, it accelerates like a spaceship! In a world of economic crises and climate change, I feel like burning less gasoline is, in my own small way, helping live more sustainably and protect the environment.

If you’re thinking about buying an electric vehicle (EV) or hybrid vehicle, these cars have a few unique features that contribute to their cost of ownership. Let’s look at a few long-term lessons of owning hybrid cars and EVs.

1. You can save big money on gas with EVs

The Ascent’s research found that Americans spend an average of $2,148 per year on gasoline. Electric vehicles let you cut that number in half. Research from Chase Auto Finance shows that it costs about half as much to power a vehicle with electricity compared to buying fuel for traditional gas-powered cars. This means that an average EV might save you $1,074 per year ($89.50 per month) on gas alone.

If you’re not ready to commit to a fully electric vehicle, a plug-in hybrid like my Toyota Prius Prime can be a great solution. My car plugs into a regular power outlet in my garage and charges overnight. The first 20 to 22 miles that I drive are all on the electric battery, burning zero gas. Then when I run out of battery power, the gasoline-powered hybrid engine takes over.

My Prius Prime tracks its lifetime gas mileage, and last I checked, it was still receiving 199 miles per gallon. That’s because I drive it on battery power so often; a typical trip around town will burn almost no gasoline. I have to remind myself to burn gas! I have to actively try to empty my gas tank with this car, because it’s so easy to just not use gas.

But if you get 199 miles per gallon and you drive 10,000 miles per year, that means you only have to buy about 50 gallons of gas per year. As of Feb. 9, 2024, the national average gas price (according to AAA) was $3.166 per gallon. So that means, with a plug-in hybrid like mine, you might only spend $158 on gas per year.

2. Electric vehicle car insurance can be more expensive

Auto insurance prices have been surging in the past few years, and electric vehicles unfortunately will not necessarily save you money in this area. EVs are often more expensive to insure because they tend to sell for higher prices than gas powered cars and they have complex parts and expensive batteries that are costly to repair or replace.

However, not every EV is expensive to own. According to January 2024 research from Zutobi’s Cost Effective Cars report, the Nissan Leaf is the cheapest EV to run in the U.S. The total cost of insurance and fuel (kilowatt hours of electricity) per year for a Nissan Leaf is only $3,626. This is about 30% less than the cost of owning a typical gas-powered car, if you combine the average amount that Americans spend on gas ($2,148 per year) plus the average annual car insurance premium ($3,017).

Yes, some EVs are higher-priced and require more expensive insurance. But some EVs are compact, easy to charge in your garage, and less costly to insure. Getting a smaller, energy-efficient, fuel-sipping EV could save you significant money on the total cost of car ownership.

3. EV car parts aren’t always pricey

It’s true that if you’re in an accident, the repair costs for your EV can be significant. Not every body shop or mechanic is qualified to fix EVs, and the EV batteries can be expensive to replace. But some EV costs, like ongoing maintenance, are lower than they are for typical gas-powered vehicles.

For example, Zutobi’s Cost Effective Cars report found that the Tesla Model S had the lowest-cost car parts for essential repairs. Tesla Model S brakes, air filters, and car battery can be replaced for an average of only $170.40 (this is for the smaller, car-starter battery; not the more expensive EV battery).

Bottom line

I love my plug-in hybrid car, and while I’m hoping to not be in the market for a new car anytime soon, I’m pretty sure that my next car purchase will be a fully electric vehicle. But in case you’re not ready to make that leap yet (maybe you have range anxiety, can’t charge an EV at home, or don’t see enough functioning EV charger stations in your neighborhood), you might want to bridge the gap with a hybrid vehicle or plug-in hybrid.

Plug-in hybrid vehicles can also qualify for EV tax credits — up to $7,500 for a qualifying new vehicle, or up to $4,000 for pre-owned. I wish I could’ve gotten that $4,000 tax credit when I bought my (used) Prius Prime! Don’t assume that EVs and hybrid cars are “too expensive,” too hard to insure, or too fussy to fix. There are affordable EV and hybrid vehicles that can help you save money on gas and maintenance, with competitive pricing on car insurance, while enjoying a smoother ride and a more sustainable lifestyle.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

See the 10 stocks

*Stock Advisor returns as of February 20, 2024

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends JPMorgan Chase and Tesla. The Motley Fool has a disclosure policy.

“}]] Read More