3 Mistakes to Avoid When Buying a Hybrid Car

Owning a hybrid car can have many benefits. Since hybrids are known for their excellent gas mileage, you might save money at the pump and save time by virtue of making fewer trips to fill up.

But if it's your first time shopping for a hybrid, there are certain traps you'll want to avoid. Here are three to keep in mind.

1. Taking out an auto loan you can't afford

Borrowing rates are elevated across the board these days, and that extends to auto loans. Since the cost of a hybrid car may be higher than that of a car with a standard gas engine, you'll need to crunch the numbers carefully to make sure you can afford the car payments you're signing up for.

Of course, within the realm of hybrid cars, there's a huge range of prices. Since auto loan rates are high these days, you may want to buy a less expensive hybrid.

As an example, Kelley Blue Book puts the starting price of a 2024 Toyota Corolla Hybrid at $24,595. A 2024 Toyota Prius, on the other hand, starts at $29,045.

Of course, you don't want to look only at prices when shopping for a hybrid. It's important to pay attention to features and gas mileage as well. The point, however, is that you'll need to make sure that whatever loan you sign up for is one that fits into your budget.

2. Assuming you'll get a tax credit

Certain plug-in hybrid vehicles may still be eligible for a tax credit in 2024. However, a standard hybrid car generally will not score you a credit. So if that's something you're counting on in order to afford a hybrid, you may want to think again.

That said, it could pay to compare the cost of a regular hybrid to a plug-in hybrid, especially if you tend to do a lot of local driving. The key difference between the two is that a regular hybrid pretty much always uses gas, albeit a potentially smaller amount than a regular car. A plug-in hybrid will usually give you a limited range of miles per charge where you're not using gas at all. So if you buy a plug-in hybrid with a 40-mile range and mostly drive locally, you may find that you're hardly ever filling up.

3. Forgetting about insurance and maintenance

You may not pay a whole lot more to insure and maintain a hybrid vehicle. But the cost of maintenance and auto insurance can be higher for a hybrid car over a car with a standard gas engine. So it definitely pays to shop around for car insurance if you're buying a hybrid. You never know when one auto insurer might have a better rate on offer.

As far as maintenance goes, it pays to do the same. Call around to different auto shops to compare prices. The good news is that hybrids have been around long enough that most traditional auto shops are equipped to maintain them (whereas for a plug-in hybrid, that may not hold true).

You may find that a hybrid car serves your needs well. But make sure to avoid these potential mistakes in the course of purchasing one.