The Electric Car Vs. Plug-in Hybrid Debate

By Doug Demuro

The pros and cons of EVs and PHEVs

Electric cars vs. Plug-in hybrids — what to know

Then you may be trying to choose between a plug-in hybrid electric vehicle (PHEV) vs. A battery-powered electric vehicle (EV or BEV).

Both types of cars include a cord that plugs into an electrical outlet for battery recharging. But there are also hybrid electric vehicles (HEV), which do not have a plug-in device. This article addresses only the plug-ins — PHEVs and EVs.

Learn more:What is EV, BEV, HEV, PHEV? Here’s your guide to types of electric cars

So, between a fully electric vehicle and a plug-in hybrid, which one is right for you? We have researched the benefits and drawbacks to answer the essential questions you have.

PHEV vs. EV: What’s the difference?

Before we cover the benefits and drawbacks of plug-in hybrid cars versus electric cars, we must understand the vehicle types.

Hybrid cars are powered by both gasoline and electricity. Most hybrids have a standard 12-volt battery like conventional gas-powered cars but also have higher-voltage battery packs. Those cells capture and redistribute energy as needed to help the vehicle burn less gas and achieve better fuel economy.

Plug-in hybrid cars are exactly what their name suggests: They’re hybrid cars that plug into an electrical outlet. Examples include the Toyota (7203.TO) RAV4 Prime and the Ford (F) Escape PHEV. Essentially, plug-in vehicles use two different powertrains, both of which can drive the wheels. An electric motor allows drivers to go a limited distance (anywhere between 16 and 50 miles, depending on the vehicle). When the battery that feeds the electric motor is drained of power, a gasoline-powered engine kicks in.

On the other hand, electric vehicles are powered solely by electricity, meaning they don’t use gasoline. Well-known electric cars include the Kia EV6, Ford Mustang Mach-E, and the Tesla (TSLA) Model S. Electric vehicles get their power from batteries, which feed an electric motor. The difference is that EVs have no backup engine to take over when the batteries run out of juice. Usually, they have more room for batteries since they don’t have to make space for the gasoline engine. That means fully electric cars offer a more extended electric-only range than plug-in hybrids.

Read: The 2023 Subaru Solterra reviewed: Price, range and more for this new electric SUV

Of course, there are some drawbacks to EVs.

Don’t miss: The 2023 Rivian R1T electric pickup: What it’s like to drive, pricing, range and more

Plug-in hybrids: pros and cons

Of course, plug-in hybrid cars also offer advantages and disadvantages.

PHEV pros

You might like: The 10 best hybrid SUVs for 2023

PHEV cons

Regarding disadvantages, a plug-in has a limited “electric-only” range — up to just 60 miles in today’s offerings, but as low as 16 miles. So, by buying a plug-in hybrid, you still have the operating cost of paying for gas, although much less than a gas-only vehicle. The cost can be a decisive factor in the fight between electric cars versus plug-in hybrids.

Read:Most car shoppers are looking for hybrids, not EVs

Is there a tax credit for electric cars?

If your primary purpose for buying a new car with a fuel-efficient focus is gas-pump savings and tax rebates, no problem. Both plug-in hybrids and electric cars will benefit you. Federal tax credits of up to $7,500 apply to eligible PHEVs and EVs, as do most state tax credits. Even states that allow alternative-fuel carpool-lane use tend to allow both plug-in hybrids and EVs to use with single occupants.

See: EV checklist: See which electric vehicles get a tax break on new list

In other words, you can’t go wrong when deciding between plug-in hybrids versus electric cars. You’ll have to decide on the one that works best for your situation.

Many buyers are taking the all-electric choice today, and the sales gap between EVs and hybrids and plug-in hybrids is shrinking. Two years ago, HEVs and PHEVs accounted for about 70% of electrified vehicle sales; EVs’ portion was 30%. The split last year was approximately 55% and 45%, respectively, and analysts expect the difference to narrow in 2023 sales.

This story originally ran on Autotrader.Com

-Doug Demuro

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

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Physical gold can be a good way to diversify your portfolio against future market uncertainty. Getty Images

If you’re thinking about investing in gold, you may already know the many different ways you can add the precious metal to your portfolio. Choosing the right type of gold investment for your goals can make a big difference in how much value you ultimately get over the long term.

For some, a physical gold investment may offer the best balance of liquidity, tangibility and direct exposure to gold as an asset, since its value moves directly alongside gold’s price. Before you decide, it’s helpful to know how you can maximize your potential gold investment with physical gold bars or coins.

Learn more about how you can get started investing in gold with a free information kit today.

Why you should invest in gold bars and coins

Here are a few reasons why gold bars and coins may be a good investment option right now.

To diversify your portfolio

Any gold investment can make a good addition to your portfolio as a way to diversify your investments. Gold, for one, tends to move inversely to the value of the U.S. Dollar — making it a good hedge against inflation. But it also remains stable through periods of uncertainty or downturn in the stock market, where the majority of your portfolio is likely invested.

“Because gold (and silver) have enduring value, no counterparty risk and are scarce relative to other stores of value and means of exchange, it is a vital component of a diversified portfolio in today’s economy,” says Paul Mladjenovic, author of Stock Investing For Dummies.

Investing in physical gold may actually be the best way to gain direct exposure to gold’s value if you’re looking to diversify with gold as a hedge against inflation and market volatility. Other options, like gold funds, futures and gold mining company stocks, can rely on a number of outside factors — but physical gold allows you to diversify directly via gold’s value.

Simple buying process

Even for beginners, buying gold bars and coins isn’t complicated. You can find high-value gold bullion from a number of online dealers or sellers in your area. Just take some time to research the weight, purity and other specifications you’re looking for before you go in — and perhaps even the specific bars or coins you want.

You should also know the current spot price of gold before buying any physical gold, so you can determine whether you’re being sold gold bars and coins at a fair price.

If you’re investing in gold to prepare for retirement, you might also want to consider a gold IRA. You can use this type of account to store physical gold for retirement. But when you work with a gold investment company, you’ll work with someone to buy eligible gold directly and set up IRS-eligible storage with a third-party custodian.

Find out if a gold IRA is the right physical gold investment for you today with a free investors kit!

Physical gold benefits

For some investors, tangibility is an important aspect of their gold investment. You can hold gold bars and coins in your hands and maintain access to it at any time — an even greater benefit if you choose a collectible form of physical gold.

Gold bars and coins also have the benefit of liquidity. If you need to sell it at any point, it will likely be easy to find a buyer.

The bottom line

Buying gold can be useful for any investor who wants to reap the benefits of long-term stability and diversification of the precious metal. For some investors, choosing a physical gold investment via gold bars and coins may be a way to gain direct access to the value of gold while also enjoying the liquidity and tangibility this type of investment offers. Plus, the process of buying it is simple. Find out more about how gold might fit into your portfolio today with a free investment guide.

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