Many plug-in models from Chrysler, Jeep, Hyundai, and Kia were discontinued for 2026. In addition, some PHEVs that might have been more affordable in the past now cost more up front after the end of a tax credit on PHEVs and EVs that could have saved buyers up to $7,500 or reduced leasing costs. Gas prices have gone up, but so have electricity prices. (With that said, some manufacturers may be offering significant discounts on PHEVs, which can tilt the balance back in favor of the plug-in.)
If you live somewhere with high gas prices and relatively low electricity costs, such as Washington state, a PHEV will pay off its premium over a gas-only car in the least amount of time. If you live somewhere with lower gas prices and higher electricity prices, such as Massachusetts, electricity costs may be so high that a PHEV might never be cheaper to operate than a gas-only car. The differences are less significant in states such as California, where electricity and fuel costs are high, and Florida, where both costs are relatively low.
No matter what, if you’re interested in a PHEV we recommend you purchase one with the longest possible all-electric range. “Higher electric ranges typically make a PHEV easier to operate in EV mode,” says Alex Knizek, associate director of auto test development at Consumer Reports. “That increases the likelihood you will drive on electric-only power and plug in regularly.”
