 TITLE: Do Hybrid and Electric Cars Really Save You Money? CONTENT: Does It Cost More to Purchase an Electric or Hybrid Model?\n----------------------------------------------------------\nThe cost of a new vehicle depends not only on the type of vehicle you buy but also on the model you choose. On average, here's how the monthly payments work out for each type of vehicle.\nSource: Experian State of the Automotive Finance Market Report, Q4 2020\nIn other words, switching to a hybrid car likely won't change your monthly loan payment drastically. But if you're considering going straight to an electric vehicle, you'll want to make sure your budget has enough room for a higher payment.\nThat said, car payments can vary widely depending on the make and model. For example, Tesla vehicles tend to be on the expensive side, with average car payments for the Model 3 and Model Y pegged at $725 and $735 per month, respectively. In contrast, a Chevrolet Bolt EV costs just $410 per month, on average. We go over the most affordable hybrid and electric vehicles here.\nIt's also important to note the potential tax breaks you can get with all-electric and plug-in hybrid vehicles. The federal government offers a credit worth up to $7,500, depending on the capacity of the battery in the vehicle and other factors. Some states offer additional incentives that could further drive down the cost of your vehicle purchase.\nThese credits won't necessarily cut your monthly payment, but you could use them to make additional principal payments to pay down the loan early, saving you time and money. END