Plug-in hybrid vs fully electric car: price and tax differences
With the growing interest in electric vehicles, it is important to understand the differences between different electric drive systems. Two popular options are the plug-in hybrid and the fully electric car. In this article, we will discuss the price and tax aspects of both options so that you can make an informed choice when buying an electric vehicle.

Price differences between plug-in hybrid and fully electric cars:

One of the first considerations when comparing plug-in hybrid and fully electric cars is price. In general, plug-in hybrids tend to be more expensive than comparable models with a conventional internal combustion engine because of the extra cost of the electric drive system and battery. Fully electric cars, on the other hand, can be more expensive than plug-in hybrids in some cases, mainly because of the larger batteries required to provide full electric range.
However, it is important to note that prices of electric vehicles are falling as technology evolves and production moves up. Moreover, there are subsidies, tax breaks and other financial incentives available that can support the purchase of both plug-in hybrids and all-electric cars and influence the price equation.

Tax differences between plug-in hybrid and all-electric cars:

Tax incentives can play an important role when choosing between a plug-in hybrid and an all-electric car. In many countries and regions, electric vehicles are incentivised through tax breaks, such as lower or even no road tax, lower purchase tax (BPM) and tax breaks for commercial vehicles. However, the specific tax benefit can differ between plug-in hybrid and fully electric cars.
Plug-in hybrids often benefit from tax breaks because they have both a combustion engine and an electric drive system. This can result in lower tax rates and more favourable tax treatment. However, fully electric cars often have the greatest tax benefits, as they are completely emission-free and therefore qualify for the most favourable incentives.
Besides the direct tax benefits, it is important to consider the lower operating costs of electric vehicles. Electricity is generally cheaper than fuel, so charging an electric vehicle can be significantly cheaper than filling up with fuel for a conventional car. This can provide significant savings in the long run and reduce the total cost of ownership of an electric vehicle.
When comparing plug-in hybrid and fully electric cars, it is important to consider both price and tax benefits. Plug-in hybrids can be more expensive to buy because of the extra cost of the hybrid system, while fully electric cars sometimes have higher price tags because of the larger batteries needed for full electric range.

In terms of tax benefits, both options can benefit from incentives, but all-electric cars often have the most favourable treatment due to their emission-free nature. However, it is important to research the specific tax schemes and benefits in your country or region, as these can vary.
In addition, it is also essential to consider operational costs, as electric vehicles generally have lower maintenance and fuel costs than conventional cars.
All in all, both plug-in hybrid and fully electric cars offer a more environmentally friendly and sustainable option for mobility. The final choice depends on your personal needs, driving patterns, budget and the availability of charging infrastructure. It is advisable to take a test drive and do extensive research before making a final decision.