Hybrid car finance

Hybrid cars offer environmentally conscious drivers a way to reduce their carbon footprint without sacrificing performance. With the cost of hybrid cars coming down and their popularity on the up, we take a closer look.  

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What is a hybrid car?

In simple terms, a hybrid electric vehicle is a cross between a traditional (usually) petrol car and an electric car. Hybrid cars combine an electric motor, an internal combustion engine (ICE) and a battery to power the vehicle. 

Electric vehicle charging port
Electric vehicle charging port
Electric vehicle charging port

With their many benefits, it’s no wonder that hybrid cars are becoming increasingly popular. Some of the benefits include: 

Many hybrid cars can even run on electricity alone for short distances, making them even more efficient.

Improved fuel economy 

Improved fuel economy 

Reduction in emissions

Better gas mileage than traditional gas-powered cars

Lower levels of pollution

How do hybrid cars work?

Broadly there are three kinds of hybrids: full hybrid (HEVs), plug-in hybrid (PHEVs) and mild hybrids. While they are all types of hybrid cars, they all work slightly differently – and they also offer slightly different benefits to the driver. 

Full hybrid cars

Full hybrid cars

Full hybrids, also known as self-charging hybrids, are a type of petrol-electric hybrid car. Unlike traditional petrol-powered cars, full hybrids can run on electricity alone, making them much more fuel efficient.


Additionally, full hybrids can generate their own electricity while they’re being driven, meaning they don’t need to be plugged in to recharge. This makes them a great choice for drivers who want the benefits of an electric car without the hassle of having to keep it charged.

Full hybrids, also known as self-charging hybrids, are a type of petrol-electric hybrid car. Unlike traditional petrol-powered cars, full hybrids can run on electricity alone, making them much more fuel efficient.


Additionally, full hybrids can generate their own electricity while they’re being driven, meaning they don’t need to be plugged in to recharge. This makes them a great choice for drivers who want the benefits of an electric car without the hassle of having to keep it charged.

Plug-in hybrid cars (PHEV)

Plug-in hybrid cars (PHEV)

With a PHEV, the electric battery is designed to be the primary power source of the car – when the battery runs out, the combustion engine automatically kicks in. When the battery is fully charged, the car can run on electricity for a certain distance before the gasoline engine kicks in.


When fully charged, a plug-in hybrid battery should last around 300 miles before you’ll need to charge it again. This allows drivers to save on fuel costs while still having the option to fall back on petrol if necessary.

With a PHEV, the electric battery is designed to be the primary power source of the car – when the battery runs out, the combustion engine automatically kicks in. When the battery is fully charged, the car can run on electricity for a certain distance before the gasoline engine kicks in.


When fully charged, a plug-in hybrid battery should last around 300 miles before you’ll need to charge it again. This allows drivers to save on fuel costs while still having the option to fall back on petrol if necessary.

Mild hybrid cars

Mild hybrid cars

Mild hybrid cars use a small electric motor to assist the engine, resulting in increased fuel efficiency. Mild hybrids typically have a four-cylinder engine and use regenerative braking to charge the battery, which powers the electric motor.


Mild hybrids are different from standard hybrids in that they cannot be plugged into an outlet to charge the battery; instead, the battery is charged through the braking system.

Mild hybrid cars use a small electric motor to assist the engine, resulting in increased fuel efficiency. Mild hybrids typically have a four-cylinder engine and use regenerative braking to charge the battery, which powers the electric motor.


Mild hybrids are different from standard hybrids in that they cannot be plugged into an outlet to charge the battery; instead, the battery is charged through the braking system.

What is the difference between hybrid and electric cars?

An alternative to hybrid cars are fully electric cars – also known as EVs. Electric cars are growing in popularity every year and will eventually replace petrol and diesel cars entirely. There are a few different types of fully electric vehicles on the market at present, including:

Battery electric vehicles (BEVs) 

Fuel cell electric vehicles (FCEVs)

Extended range electric vehicles (E-REV)

These are powered by electric batteries only; unsurprisingly they have a far bigger range than the battery capacity of hybrid vehicles and they must be plugged into an electric charging point to recharge. The difference between a fully electric vehicle and a plug-in hybrid is that electric cars don’t have a combustion engine at all.  

Illustration of electric vehicle at charging point
Hybrid badge on door of blue car
Hybrid badge on door of blue car
Hybrid badge on door of blue car

How to choose a hybrid car

The combination of a battery and an engine results in greater fuel economy and fewer CO2 emissions when compared with a conventional car, without compromising on overall performance. This is the great appeal of the modern hybrid. What might draw you to one over the other boils down to what’s important to you, your driving habits and where you live. For example:

If you live near charging stations or somewhere where you can install a charger, then a PHEV could be a good choice. 

If you live in central London where fully electric cars and plug-in hybrids are exempt from the congestion charge this could sway you towards a plug-in.

 If you don’t have easy access to electric vehicle charging points, then a full hybrid might suit you better as you won’t have to worry about charging it at all.

Are hybrids more expensive than regular cars?

To buy outright, yes hybrid cars are more expensive than regular cars with combustion engines – but there are plenty of financial incentives to encourage you to buy a hybrid, including:

Exemption from congestion charges (if you live in London) 

Lower tax costs

Because of their better fuel economy and lower tailpipe CO2 emissions, most CO2 based car tax is lower for hybrids than for their traditional equivalents.


Hybrid cars are becoming more accessible all the time as manufacturing costs decrease; these cost reductions are quickly passed on to consumers, making them more affordable every year. They are typically less expensive to buy than fully electric cars, which makes them the more affordable, ‘greener’ option for many.


The additional power supplied by the electric motor also results in improved fuel efficiency: hybrids don’t rely on fossil fuels and therefore release fewer gas emissions, meaning they are more economical and less damaging to the environment than conventional cars.

Icon of a purple stack of money with a green car in the middle.
Icon of a purple stack of money with a green car in the middle.
Illustration of Oodle's online car marketplace

Buying a second-hand hybrid car

It’s perfectly simple and safe to buy used hybrid cars on finance – the process is no different to buying a traditional combustion engine vehicle this way. A second-hand hybrid will likely cost more than its petrol or diesel equivalent however you decide to buy, due to its higher price-tag when new. But hybrids usually mean lower running costs, so long-term fuel savings could significantly offset the initial larger spend.


Ready to buy but unsure of your budget? Try our free car finance calculator to find out how much you could be eligible to borrow and to see an illustrative example of what your repayments could look like.


When you find a used hybrid elsewhere, we can sort out the finance for you.

It’s perfectly simple and safe to buy used hybrid cars on finance – the process is no different to buying a traditional combustion engine vehicle this way. A second-hand hybrid will likely cost more than its petrol or diesel equivalent however you decide to buy, due to its higher price-tag when new. But hybrids usually mean lower running costs, so long-term fuel savings could significantly offset the initial larger spend.


Ready to buy but unsure of your budget? Try our free car finance calculator to find out how much you could be eligible to borrow and to see an illustrative example of what your repayments could look like.


When you find a used hybrid elsewhere, we can sort out the finance for you.

It’s perfectly simple and safe to buy used hybrid cars on finance – the process is no different to buying a traditional combustion engine vehicle this way. A second-hand hybrid will likely cost more than its petrol or diesel equivalent however you decide to buy, due to its higher price-tag when new. But hybrids usually mean lower running costs, so long-term fuel savings could significantly offset the initial larger spend.


Ready to buy but unsure of your budget? Try our free car finance calculator to find out how much you could be eligible to borrow and to see an illustrative example of what your repayments could look like.


When you find a used hybrid elsewhere, we can sort out the finance for you.

Hybrid car FAQs

What is the best type of hybrid to buy?

What is the best type of hybrid to buy?

What is the best type of hybrid to buy?

Are hybrids good for long distance driving?

Are hybrids good for long distance driving?

Are hybrids good for long distance driving?

How long do hybrid cars last?

How long do hybrid cars last?

How long do hybrid cars last?

Why buy a hybrid over an electric or regular car?

Why buy a hybrid over an electric or regular car?

Why buy a hybrid over an electric or regular car?

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