economics of buy a plug in hybrid electric vehicle

That’s an additional savings of $4,250 over a five-year ownership period. Getting back to the Chrysler Pacifica, the EPA says it will cost the average owner $1,850 per year to drive the standard V6 model 15,000 miles, while it’s estimated at $1,000 for the PHEV. By comparison, the EPA says the average 2021 vehicle costs $1,500 to go the same distance using regular-grade fuel, and $1,950 with premium. According to the EPA, the cost of driving a PHEV 15,000 combined city and highway miles per year at current national average gas and electricity prices runs between $600-$1,650 using regular-grade fuel, and between $1,300 and $2,150 for plug-ins that require premium. Again using the Chrysler Pacifica as an example, this month buyers are eligible for up to $5,750 cash back (versus $3,500 for the standard model) or zero percent financing.īeyond that, a plug-in hybrid’s cost effectiveness largely depends on its energy efficiency. Factoring in the Hybrid’s $7,500 federal tax credit effectively drops the PHEV’s price to $32,795, which amounts to $2,700 in up-front savings.Īlso, you’ll find some PHEVs being offered with incentives from their respective automakers to spur sales. For example, a gas-only Chrysler Pacifica Limited minivan is retail priced at $35,495, while the Plug-in Hybrid Touring model-which can run for 32 miles on battery power with a full charge-stickers at $40,295. The one-time tax credit alone (provided you can claim the full amount when you file your tax return) can often make up for a PHEV’s added cost.

For example, Massachusetts and Oregon give PHEV buyers a $1,500 incentive, while it’s a $1,000 in Pennsylvania and Maine.

A few states further sweeten the deal with rebates or tax credits of their own, but they’re usually less than they are for full-electric models.

Economics of buy a plug in hybrid electric vehicle