EV vs Hybrid in 2025: A Connoisseur's Verdict on the True Cost of Ownership

The debate has reached a fever pitch in Australia. In one corner, the full-battery electric vehicle (BEV), championed as the clean, modern future. In the other, the petrol-hybrid, defended as the pragmatic, sensible choice for the transitional era. Consumers are caught in the middle, bombarded with conflicting information. The question they are asking is simple and direct:

Which one will actually cost me less to own and run in 2025?

To answer this requires a rigorous, unsentimental analysis. It demands we move beyond simplistic "petrol vs electricity" calculations and conduct a forensic examination of the Total Cost of Ownership (TCO). This is the connoisseur's verdict.

The Facts: The Unforgiving Numbers

To create a meaningful comparison, we must analyse two comparable vehicles. Let's take two of Australia's most popular models: a fully electric mid-size SUV and its top-selling hybrid equivalent. We will model ownership over a five-year, 75,000 km period.

• Purchase Price & Depreciation: The EV carries a significant upfront premium, often $15,000-$20,000 more than its hybrid counterpart. This is the single largest factor. Historically, EV depreciation was steep, but as market acceptance grows, this is stabilising. We project the EV will retain approximately 55% of its value over five years, while the hybrid, a mature and trusted technology, will hold a stronger 60%. Advantage: Hybrid.

• Energy & Fuelling: Assuming an electricity rate of $0.30/kWh for home charging and a petrol price of $2.00/litre, the numbers are stark. The EV will cost approximately $810 per year to power (18kWh/100km). The hybrid, at 5.5L/100km, will cost $1,650 per year. Over five years, this is a saving of over $4,000 for the EV owner. Advantage: EV.

• Servicing & Maintenance: This is a clear victory for the electric vehicle. With no oil changes, spark plugs, or complex exhaust systems, EV servicing is demonstrably cheaper. We budget an average of $250/year for the EV versus $450/year for the hybrid, which still requires regular internal combustion engine maintenance. Advantage: EV.

• Insurance & Consumables: Insurance premiums for EVs remain stubbornly higher—often by 15-20%—due to higher repair costs and a shortage of qualified technicians. Tyre wear can also be faster on heavier EVs. This adds a significant, often overlooked, cost. Advantage: Hybrid.

Interim Verdict: After five years, the hybrid is still likely to be the cheaper vehicle to own, purely on the numbers. The EV's lower running costs do not, in this scenario, fully offset its higher purchase price and steeper depreciation.

EV vs Hybrid: The Costs You Don't See on a Spreadsheet

A car is not an appliance. The ownership experience carries non-financial costs and benefits that a discerning buyer must consider.

• The Convenience Equation: The EV owner enjoys the profound luxury of never visiting a petrol station for daily driving. Waking up to a "full tank" is a significant quality-of-life improvement. The hybrid owner, conversely, enjoys total freedom from range or charger anxiety, with a five-minute refuel available on almost every corner. This is a deeply personal calculation of which convenience matters more.

They've going to replace fuel excise somehow.

The Regulatory Risk: The spectre of Road User Charges (RUCs) for EVs looms large. A potential charge of 2.5 cents/km would add approximately $375 per year to the EV's running costs, eroding its energy advantage. This future uncertainty must be factored into any decision made today.

• The Driving Experience: The EV offers a fundamentally different driving experience: silent, smooth, and with instant torque that makes for effortless city driving. The hybrid is a more traditional, familiar experience. For the connoisseur of driving dynamics, the refinement and responsiveness of the EV are often considered a superior product experience, and this has its own intrinsic value.

Final Verdict: For the purely financially motivated buyer in 2025, the hybrid remains the more rational choice. The numbers, particularly the upfront cost and depreciation, are difficult to argue with. However, for the buyer who places a higher value on the superior driving experience, the convenience of home charging, and the desire to adopt new technology, the premium for an EV can be justified.

The true cost of ownership is not just what you pay, but what you value.

Drive Change - Drive Electric