Thinking about switching to a greener car lease but not sure whether to go fully electric or hybrid? With so many new models being released, it’s never been simpler – or more affordable- to make the switch!
At Car Leasing Made Simple, we offer a huge range of electric, hybrid and plug-in hybrid lease deals from leading brands like Audi, BMW, Mercedes, Polestar, Tesla and more. But which type of car is best for you?
Let’s break it down…
What’s the Difference Between Electric and Hybrid Cars?
When weighing up your options between electric vs. hybrid cars, knowing a little more about each type of EV is essential. Let’s take a closer look at the three main types of electric and hybrid vehicles: BEVs, PHEVs, and HEVs, to help you make your decision:
1. Battery Electric Vehicles (BEVs) – Fully Electric
- No petrol, no diesel—just battery power
- Zero emissions, so they’re the most eco-friendly option
- Lowest running costs (electricity is much cheaper than fuel)
- Can drive on average 200-350 miles on a single charge
Best for: People with easy access to home or workplace charging.
2. Plug-in Hybrid Electric Vehicles (PHEVs) – A Mix of Battery & Fuel
- Runs on both electric and petrol/diesel
- Short trips (typically 30 miles or less) can be done on battery power alone
- No range anxiety—if the battery runs out, the engine takes over
- Still needs regular charging to maximise fuel savings
Best for: Drivers who want lower emissions but still need a petrol backup for longer trips.
3. Hybrid Electric Vehicles (HEVs) – Self-Charging Hybrids
- Uses a small battery to assist fuel efficiency
- No need to charge—it recharges while driving
- Mostly runs on petrol/diesel, with occasional electric assistance
- Great for stop-start city driving
Best for: Anyone who wants better fuel efficiency without worrying about charging.
4. Mild Hybrid Electric Vehicles (MHEV)
- An electric motor is used to assist and power the internal combustion engine
- It can’t be powered by the electric motor alone
- Improved fuel efficiency thanks to assistance from the motor
- Lower emissions, great for driving in built-up areas
Best for: Anyone looking to improve fuel efficiency and reduce emissions without worrying about plugging in to charge.
Which One is Cheaper to Lease & Run?
When choosing to lease a new car, price plays a big part in your decision. When it comes to cost, electric cars vs. hybrid lease cars have different trade-offs, including fuel savings and servicing and maintenance.
- Leasing an EV tends to cost more upfront, but the savings on fuel and maintenance quickly add up, making it more cost-effective than driving a fuel-powered car. Charging is significantly cheaper than filling up with petrol or diesel, and with fewer moving parts, servicing costs are lower too.
- Leasing a hybrid or PHEV is usually cheaper per month, but you’ll still need to budget for fuel and regular servicing, which can make long-term costs higher than you might expect. You’ll also need to consider fluctuating fuel prices, as you’ll still need to top up your hybrid or plug-in hybrid car.
If you’re weighing up the savings that come with an electric vs a hybrid car, here’s a quick summary:
If you mostly do short journeys and can charge at home or work, an EV will likely save you more money in the long run. If you drive longer distances or don’t have easy access to charging, a hybrid or PHEV might be a better option for flexibility.
Tax benefits
Tax changes in 2025 mean that EVs are no longer a tax-free option for drivers. But that doesn’t mean there’s no savings to be had. Tax payments on an electric car are still less than you’d pay for an ICE car. Going electric or hybrid can save you money on tax, especially if you’re leasing for business.
EVs – lower company car tax – Just 2% Benefit-in-Kind (BIK).
Salary Sacrifice Schemes – Save up to 40% on your lease payments.
EVs are ULEZ & Congestion Charge exempt – Commuting regularly? Emission-free cars don’t have to pay these charges. Hybrid cars will have to pay, but you won’t be charged as much as you would with an ICE car.
Range and charging
When choosing to lease an electric or hybrid car, you’ll need to consider charging and range. EVs need to be plugged into an external charging point to top up the battery — you can install a charger at home or use a public charging station. A hybrid car recharges on the go, thanks to regenerative braking, so you don’t have to worry about remembering to top up. Plug-in hybrids, similar to electric vehicles, require an external charger to top up the battery.
Let’s take a closer look at electric vs. hybrid car charging and range below:
Range
- EVs: Most new models offer 200-350 miles per charge. If you regularly drive over 100 miles per trip, look for an EV with a 250+ mile range.
- PHEVs & HEVs: No range worries – they use petrol when the battery runs out.
Long-distance drivers: If you can’t guarantee charging on your route, a hybrid or PHEV may be the safer bet!
Charging
Electric and plug-in hybrid cars need external chargers to run, whereas hybrid cars regenerate power when driving:
- EVs & PHEVs need charging – ideally at home or work. Public charging networks are expanding fast, with rapid chargers now available at motorway services, petrol stations, and even supermarkets.
- Hybrids (HEVs) don’t need charging – they self-charge while you drive through regenerative braking, turning energy from braking into energy to power the battery.
- Mild hybrid vehicles (MHEVs) don’t need to be charged. These cars only have a small electric motor that is also powered by regenerative braking.
A home charger is the easiest way to keep an EV or PHEV topped up. If you would like to discuss the installation of an EV charger, please click here and complete the form or call us on 01753 878430.
Electric and Hybrid: pros and cons
The best way to weigh up electric vs. hybrid cars is to look at the pros and cons of each. Both electric and hybrid leases have their perks, and the right choice depends on how you drive.
Electric cars
- EVs are cheaper to run, you won’t be affected by increasing fuel costs
- Businesses can save money on tax with an EV
- EVs have some of the best, most advanced tech on the market
- EV technology is constantly improving for the best of the best in the automotive space
- EVs are futureproof — we’ll all have to make the change in the coming years, why not get a head start?
Hybrid and plug-in hybrid cars
- Hybrids & PHEVs offer more flexibility for those who drive long distances – the internal combustion engine will always act as a backup
- Hybrid cars recharge themselves, so they’re a good option if you don’t have access to an EV charger
- Experience both electric and fuel-powered driving in one for the best of both worlds
- Hybrid cars allow you to take the step towards all-electric driving
- They’re better for the environment than ICE cars
Mild hybrid cars
- A good choice for drivers who want to go further using less fuel
- MHEVs recharge themselves, so you don’t need to worry about topping up
- Allows drivers to experience the latest technology
- MHEVs are a good entry point to all-electric driving
Electric vs hybrid car leasing comes with a range of considerations to explore when deciding which is best for you. Both are good choices for those who are looking to reduce their carbon footprint and experience some of the most advanced models on the market. If you’re not ready to make the switch to fully electric cars just yet, a plug-in hybrid or self-charging hybrid could be a great choice.
Still unsure? Explore our latest car lease special offers to find the best option for you.
