PHEV or EV: What’s the Best Option to Replace Your Small Petrol Car?

With more drivers moving away from traditional petrol-powered vehicles, the decision between a Plug-in Hybrid Electric Vehicle (PHEV) and a fully Electric Vehicle (EV) has become a hot topic — especially for those looking to take advantage of government incentives, like the FBT exemption on EVs.

If you’re considering replacing your small petrol car with something more eco-friendly, here’s what you need to know to decide between a PHEV or EV.

Understanding Your Driving Needs

In one recent example, Megan, a driver of a 2020 Kia Cerato with 52,000km, was looking to make the switch to a more environmentally friendly vehicle. Her driving pattern involves regular 220km trips between Ulladulla and Sydney, with very little driving once she reaches the city.

With plans to install solar panels at home (great for charging), but limited charging access while in Sydney, her situation is a good case study for anyone trying to decide between a PHEV or EV.

EV vs PHEV: Which One Suits Long Drives?

For drivers like Megan, who cover around 220km at a time, an EV can handle the trip comfortably. Many modern EVs offer ranges well over 300km, meaning you could complete the trip with a single charge. Plus, the increasing availability of fast chargers along major routes makes topping up easier than ever.

A PHEV could work if you were regularly doing 500km+ in a single day, where charging stops could become inconvenient. However, PHEVs need frequent external charging to maximise their efficiency — they’re not meant to be driven solely on petrol, or you’ll miss out on the cost and environmental benefits.

EV Charging and Range Tips

For EV drivers, tools like the PlugShare app help find charging stations en route and at your destination. When choosing an EV, it’s important to check:

• The real-world range (highway driving often reduces range by up to 20%).
• Availability of fast charging stations along your regular routes.
• Charging speeds — higher-output chargers (like 150kW+) recharge your battery much faster than lower-output public chargers.

Suggested EVs and PHEVs Under $50K

If you’re keen to stay under $50,000 drive away, here are some great options to consider:

BYD Atto 3 Premium (EV)

• Range: Up to 420km (expect around 330km on the highway).
• Recently reduced in price, offering excellent value.
• Feature-packed with good space for a small SUV.

Kia EV3 (Upcoming EV)

• Expected to sit closer to $50K.
• Kia’s strong reputation and growing EV lineup make this a model worth watching.

Toyota bZ4X or Subaru Solterra (EV)

• Ex-demo models are already appearing under $55K.
• Both vehicles share the same platform, with slightly different styling.

Used EVs

Don’t overlook the second-hand market, especially for vehicles that qualify for the FBT exemption (vehicles that never paid luxury car tax). With novated leases, buying from a dealer also allows the leasing company to deduct GST from the purchase price, which further reduces your costs.

Are Large Electric SUVs Getting Cheaper?

If you’re hoping to find an affordable large EV SUV, there’s still a bit of a wait. Models like the Kia EV9 are highly desirable but still pricey, with even demo models sitting around the $100K mark. There’s some hope on the horizon, though, as the Hyundai Ioniq 9 is set to launch soon, potentially increasing competition and driving prices down.

That said, we’re unlikely to see true bargains in the large SUV EV segment until 2026 or later, as more Chinese brands and affordable options enter the market.

Best Small SUV Options for City Driving

If you’re coming from a small hatch like a Volkswagen Polo and want something bigger but still city-friendly, here are some of the best options in the mid-$30K range:

Hyundai Kona

• Updated and modern, with strong tech features.
• Easy to drive and park, even in tight city spaces.

Honda HR-V

• Spacious and practical.
• Excellent reliability and resale value.

Kia Seltos

• Great value for money.
• Comes with a seven-year warranty, adding peace of mind.

Toyota Corolla Cross

• Compact yet practical.
• Available in both petrol and hybrid variants.

BYD Atto 3 (EV Option)

• If you’re open to electric, this small SUV is hard to beat for price and features.

Which Automatic Transmission is Best?

When shopping for your next vehicle, you might also come across different automatic transmissions. Here’s a quick guide to help you understand the pros and cons:

Each type comes with trade-offs, so your ideal choice depends on your driving style and priorities — whether it’s smoothness, efficiency, or performance.

Skoda vs Volkswagen – Which Should You Choose?

If you’re considering a Skoda or Volkswagen, you might have heard mixed opinions — especially from mechanics. The truth is, Skoda and Volkswagen vehicles share many components, from engines to transmissions, since both brands belong to the Volkswagen Group.

Common Concerns

• Repairs and parts can be expensive.
• Some models have a reputation for transmission issues (especially older dual-clutch gearboxes).

Benefits

• Both brands offer great driving experiences, with solid handling and refinement.
• Skoda often offers better value than Volkswagen, with more features for less money.

Alternatives

If you’re after reliability, Japanese brands like Toyota, Mazda, and Kia tend to have a stronger reputation for durability and lower running costs.

For around $30,000, you could also consider:

• Toyota Camry – Dependable, spacious, and comfortable.
• Kia Cerato – Budget-friendly with a great warranty.
• Mazda3 – Stylish with a premium interior.

Final Thoughts

Whether you’re moving from a small petrol car to an EV, PHEV, or a more traditional petrol or hybrid SUV, the key is understanding your driving habits, budget, and long-term running costs. With government incentives like the FBT exemption, going electric is becoming more affordable, but don’t forget to consider factors like charging access and insurance costs before making the switch.

If you’d like tailored advice on your next car purchase, feel free to reach out — we’re here to help you navigate the exciting (and sometimes confusing) world of new cars.

Ensure you search the Tynan stock through our link here.

Credit: CarSales.com.au