A hybrid and an electric car get lumped together as the sensible choice, but they solve different problems and suit different lives. Here is the plain version.
How a hybrid actually works
A self-charging hybrid pairs a petrol engine with a small battery and motor, and it never plugs in. It charges itself as you drive and brake. You buy fuel as normal, but you use a lot less of it in city driving. The upside is zero change to your routine and a lower price than an equivalent EV. The downside is you are still buying petrol, and the savings shrink on the highway where the engine does most of the work.
How an electric car actually works
An EV has no engine and no petrol. You charge it, mostly at home overnight, occasionally at a public fast charger on a longer trip. It is the cheapest to run and the nicest to drive day to day, quiet and instant. The catch is you need somewhere to charge, and long trips take planning.
What it costs to run
An EV charged at home is the cheapest, often around $2 to $5.50 per 100km, against roughly $5 to $7 for a good hybrid and far more for a petrol car. If you can salary sacrifice, the federal FBT exemption on an eligible electric car under the price threshold can save a salaried buyer thousands a year through a novated lease, which is the single biggest reason to go electric rather than hybrid right now.
Who each one suits
Buy a hybrid if you cannot charge at home, if you regularly do long country drives, or if you want the lowest price and zero change to your habits. Buy an electric car if you can charge at home, most of your driving is local, and especially if you can novated lease it, where the tax break tips the maths hard in the EV's favour.
Cartell Assessment
There is no universally right answer, only the right answer for your driveway. No home charging, lots of highway, tight budget: hybrid. Home charging, mostly local km, access to salary sacrifice: electric, and it is not close once the FBT saving is in the mix. The mistake is buying an EV with nowhere to charge it, or buying a hybrid when an electric novated lease would have cost you less overall.
AU Outlook
The gap keeps closing. EV prices are falling and the cheapest now undercut many hybrids before the tax break is even counted. If you are on the fence and you can charge at home, the case for electric gets stronger every quarter.
