Hybrid or Electric Car: Which Is Right for You in 2025?
In today's rapidly evolving automotive landscape, the choice between hybrid and electric vehicles represents more than just a purchasing decision - it's a lifestyle choice with significant environmental and financial implications. With the UK's electric vehicle market expanding dramatically and new models like the Polestar 4, BMW i4, and budget-friendly options such as the Dacia Spring entering the market, understanding the differences between hybrid and fully electric cars has never been more important.
Let's explore the key distinctions, advantages, and considerations for both electric car and hybrid technologies to help you determine which option aligns best with your driving needs and preferences in 2025.
What is an electric car?
A battery electric vehicle (BEV) is powered entirely by electricity stored in its battery pack. With no exhaust pipe and zero tailpipe emissions, electric cars operate solely on electric power without any internal combustion engine. The battery powers one or more electric motors, delivering instant torque and a smooth, quiet driving experience.
Popular electric car models in the UK include the BMW i4, Polestar 4, and the more affordable Dacia Spring. These vehicles represent the cutting edge of automotive technology and form the core offering of electric car salary sacrifice schemes across the UK.
Pros and cons of EVs
Advantages
Zero tailpipe emissions
Lower Running costs (approximately 2-4p per mile for electricity vs 15-20p for petrol)
Reduced maintenance needs with fewer moving parts
Instant torque and responsive acceleration
Whisper-quiet operation
Potential for home charging
Exemption from London Congestion Charge and most Clean Air Zones
Lower company car tax through salary sacrifice electric car schemes (fixed at 3% until 2026)
Disadvantages
Higher initial purchase price (though this gap is narrowing)
Range limitations (though rapidly improving with models like the BMW i4 offering 350+ miles)
Charging infrastructure still developing (though expanding rapidly)
Longer "refuelling" time compared to petrol/diesel
Battery degradation concerns (though most manufacturers offer 8+ year warranties)
What is a hybrid?
This image is sourced from The Telegraph
Hybrid vehicles combine a conventional internal combustion engine with an electric propulsion system. This dual power source aims to capture the benefits of both technologies, offering improved fuel efficiency and reduced emissions compared to traditional petrol or diesel vehicles.
Types of Hybrids
Mild Hybrids (MHEVs): These cannot run on electric power alone. The electric motor simply assists the petrol/diesel engine and enables features like regenerative braking and stop-start systems.
Full Hybrids (HEVs): Can run on electric power alone for short distances (typically 1-2 miles) at low speeds. The battery charges through regenerative braking, not by plugging in.
Plug-in Hybrids (PHEVs): Feature larger batteries that can be charged from an external power source. PHEVs can typically travel 20-50 miles on electric power before the combustion engine takes over.
Pros and cons of hybrids
Advantages:
Greater range than conventional vehicles
No range anxiety with fuel backup
No need for charging infrastructure (except PHEVs)
Lower emissions than conventional petrol/diesel cars
Smooth transition technology for those hesitant about fully electric
PHEVs qualify for some government incentives
Disadvantages:
More complex mechanical systems requiring maintenance
Still produce emissions (especially if PHEVs aren't regularly charged)
Higher running costs than pure electric vehicles
Higher company car tax than electric vehicles
Less impressive electric-only range (for PHEVs)
More expensive than equivalent conventional models
EVs vs Hybrids compared
| Feature | Electric Cars (BEVs) | Hybrid Vehicles (HEVs/PHEVs) |
|---|---|---|
| Purchase Price | £25,000-£60,000+ (Dacia Spring from £14,995) | £20,000-£50,000+ |
| Running Costs | 2-4p per mile | 8-12p per mile |
| Annual Maintenance | £150-£300 | £300-£600 |
| Average Range | 200-350+ miles per charge | 400-700 miles (combined) |
| Refueling/Recharging Time | 17 mins (rapid charge) to 8+ hours | 5 mins (petrol) + charging for PHEVs |
| CO2 Emissions | 0g/km (tailpipe) | 25-90g/km |
| BIK Tax Rate (2025) | 3% | 8-20% (depending on emissions) |
| London Congestion Charge | Exempt | Varies by emissions level |
| Infrastructure Requirements | Charging network access | Standard fuel stations |
| Battery Warranty | Typically 8 years/100,000 miles | 5-8 years/60,000-100,000 miles |
| Residual Value (3 years) | 45-55% | 40-50% |
Performance Metrics
Electric vehicles like the BMW i4 and Polestar 4 deliver exceptional performance with instant torque available from standstill. The Polestar 4, for instance, accelerates from 0-60mph in just 3.8 seconds in its dual-motor configuration, outperforming many petrol sports cars.
Hybrids typically offer good acceleration due to the combined power of electric and combustion engines, but their performance varies significantly between models. PHEVs often provide an EV mode for city driving and switch to hybrid operation for higher speeds or when the battery depletes.
Total Cost of Ownership
While electric vehicles generally have higher upfront costs, their total cost of ownership over 5 years is increasingly competitive:
EV annual energy costs: Approximately £450-£800 for 10,000 miles (depending on home/public charging mix)
Hybrid annual fuel costs: Approximately £1,000-£1,500 for 10,000 miles (depending on driving patterns)
Maintenance savings: EVs typically save £300-£400 annually on maintenance due to fewer moving parts
For company car drivers, the 3% Benefit-in-Kind rate for electric vehicles through electric car salary sacrifice schemes offers substantial savings compared to hybrid alternatives (which range from 8-20% depending on emissions).
Environmental Impact
Electric vehicles produce zero tailpipe emissions, making them the clear environmental choice. When considering lifetime carbon footprint:
EVs: Produce approximately 65% less lifetime CO2 than petrol vehicles (based on UK electricity mix)
Hybrids: Produce approximately 25-30% less lifetime CO2 than conventional vehicles
PHEVs: Environmental benefits depend heavily on charging behavior—frequently uncharged PHEVs may perform worse than efficient conventional vehicles
Range and Refueling/Recharging
Range anxiety remains a concern for some prospective EV owners, but significant improvements have been made:
BMW i4: Up to 365 miles (WLTP)
Polestar 4: Up to 370 miles (WLTP)
Dacia Spring: Up to 140 miles (WLTP)
The UK charging network now boasts over 50,000 public charging points, with rapid chargers capable of adding 100+ miles of range in 20-30 minutes. For daily commuting, home charging overnight covers most needs.
Hybrids eliminate range anxiety entirely, with PHEVs offering the best of both worlds - electric driving for daily commutes and petrol for longer journeys without charging stops.
Technology and Features
Electric vehicles typically lead in technology adoption, with over-the-air updates, advanced driver assistance systems, and higher levels of connectivity becoming increasingly common on higher-end, and middle-of-the-market EVs. High tech electric vehicles include the BYD Seal, Hyundai Ioniq 5, and Polestar 4 - although many models are available.
In addition to that, EVs features more regenerative braking options - including one-pedal driving - whereby the car will break to a stop when the driver comes off the accelerator. This allows the car to be driven using the accelerator only in some scenarios, reducing fatigue.
Hybrids often incorporate similar technologies but may lag behind pure EVs in software capabilities and interface design.
Is An Electric Car Right For You?
Which drivers would benefit from EVs the most
Electric cars through company electric car schemes work best for commuters with regular driving patterns - although increasing EV range capabilities allow a wide variety of people to benefit from EVs.
Access to home charging is advantageous, but salary sacrifice charging is also available - making charging in public 20-50% cheaper.
Drivers looking for a second car should seriously consider an EV - as even a smaller EV could end up meeting their range demands, whilst being cheaper to run.
Tech enthusiasts would enjoy driving electric thanks to all the innovations currently happening within the EV space - more so if those drivers are environmentally conscious, and want to reduce their personal carbon footprint.
Lastly, drivers who have access to company salary sacrifice schemes should consider switching to an EV. Electric cars currently benefit from a low 3% BIK rate (increasing gradually to 9% by 2028). This makes EVs much more cost efficient when leasing - compared to petrol or diesel (or even hybrid) alternatives.
Daily driving habits that work best with electric
The average UK driver travels under 20 miles per day, well within the range of even the most affordable EVs like the Dacia Spring. Electric vehicles excel on regular commuting routes, in urban or suburban areas. With predictable daily mileage, and the risk of stop-and-go traffic on the morning commute - EVs benefit from expending very little energy when not moving, as well as their ability to regenerate some range through braking.
With predictable daily mileage - drivers' biggest consideration should be the average, regular long trip they may take - eg - driving to see family once a month, or making an occasional intercity trip.
Home charging considerations
Home charging transforms the EV ownership experience, and here are some things you need to consider. Installation costs can range from £500-£1,500, with potential grants available. This cost can be reduced by bundling charger installation into an electric vehicle salary sacrifice scheme.
Home charging can also be much cheaper, unless the driver uses salary sacrifice charging. This is due to EV tariffs - that provide preferential pricing to EV drivers, typically allowing for convenient overnight charging at lower electricity rates. In addition, smart chargers can utilise off–peak electricity for further savings.
Benefits of EV ownership
Beyond the environmental impact, electric car ownership offers lower running costs (approximately 60-70% cheaper than petrol), reduced maintenance requirements (no oil changes, fewer wear components), and a smoother, quieter driving experience.
With future potential for vehicle-to-grid technology implementation that would allow EV drivers to sell electricity back to the grid, EV running costs will remain lower than costs of competing fuel types.
With a growing EV salary sacrifice market - drivers can also benefit from driving a new EV for less, without the worry of obsolescence brought on by rapidly improving technology.
This image is sourced from CRU Group
Is A Hybrid Right For You?
Ideal driver profiles for hybrids
Hybrids particularly suit drivers without home charging access, or drivers who regularly undertake long journeys. Drivers in areas with limited charging infrastructure may also prefer a hybrid engine - however it must be noted that forgetting to recharge the hybrid could lead to decreased performance, range, and overall enjoyment of the vehicle.
Driving scenarios where hybrids excel
Hybrids perform best in mixed driving conditions (city and motorway), as well as areas with limited charging infrastructure. The UK is rapidly developing rapid charging facilities along major routes to reduce range anxiety associated with journeys exceeding typical EV ranges - but hybrids do outperform EVs on the overall range figures.
For situations requiring maximum flexibility, hybrids can be a good way to reduce fuel cost and pollution, whilst maximising driver flexibility.
Benefits of hybrid ownership
Hybrid technology offers improved fuel economy and reduced emissions over conventional vehicles. There may be no need to adapt to new charging routines, but drivers of plug-in hybrids should be aware of the effects. Hybrids may be cheaper than EVs, especially on the lower end of the market - however EV salary sacrifice car schemes can often offset this premium through 20-50% savings on the cost of leasing.
Different types of hybrids for different needs
With various hybrid technologies available, options exist for different requirements:
Mild hybrids: Best for drivers wanting improved efficiency without changing habits
Full hybrids: Ideal for urban drivers seeking significant fuel savings
Plug-in hybrids: Perfect for motorists with short daily commutes but occasional long trips
Making the Transition: From Hybrid to Electric
For many drivers, hybrids serve as an excellent transitional technology before moving to fully electric vehicles. The progression often follows this pattern:
Start with a hybrid: Become comfortable with electric propulsion and regenerative braking
Progress to a PHEV: Develop charging habits while maintaining fuel flexibility
Move to a full EV: Once charging infrastructure and range meet your needs
This gradual transition allows drivers to adapt their habits while technology and infrastructure continue to improve. With models like the BMW i4, Polestar 4, and Dacia Spring demonstrating the diverse range of electric options available, the final step to full electrification becomes increasingly appealing.
Government Incentives and Regulations
The UK government continues to support electric vehicle adoption through:
Support for expanding the charging network
Clean Air Zones in major cities favouring zero-emission vehicles
Favourable 3% Benefit-in-Kind rates for electric company cars for the rest of the year.
These policies make electric car schemes particularly attractive for both employers and employees, with salary sacrifice arrangements providing significant tax benefits.
Are you interested in saving 20-50% on any electric car?
Through the electric car scheme, UK employers can lease electric vehicles on behalf of their employees. In return, employees agree to pay for the lease through salary sacrifice deductions from gross pay before tax.
As a company car under the electric car scheme, your vehicle benefits from the current 3% Benefit-in-Kind tax rate (fixed until 2026), resulting in substantial savings compared to personal leasing agreements.
Whether you're considering the performance-oriented BMW i4, the stylish Polestar 4, or the affordable Dacia Spring, the electric car salary sacrifice scheme makes these vehicles more accessible than ever - with a wide range of cars available on our site.
Book a call with our specialists to discover how the Electric Car Scheme can benefit you and your journey toward sustainable transportation!
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