Your questions answered: Should I buy another Tesla or go for a hybrid or PHEV instead?

Never has Tesla polarised so much, especially with King Elon shaking things up in the White House alongside Donald Trump. And those who bought Teslas a few years ago when prices were high have been burnt on residual values as the market adjusts.

It’s prompted one reader to query whether he wants to dive into the Tesla fold again.

It’s the first of an EV-heavy week of letters, with one reader looking for a dog-friendly EV and another sussing out second-hand EV options.

One ute buyer wants to do away with dirty diesel and shift to electric, plus there’s a loyal Honda driver who wants a replacement that may or may not be a Honda.

Got a question but don’t know where to find the information you need? Email us at editor@carsales.com.au

Question: I keep my car for four-year cycles and I bought last couple of cars through company novated lease. After four years of use I sell my car easily and make some credit after settling the lease towards some holiday.

Answer: Unfortunately you bought (or committed to a lease) at the top of the market when Covid craziness meant high prices on EVs.

The market has since vaguely normalised and EV prices have come down substantially, which hasn’t helped your Tesla’s residual value.

As for where to head next, the leasing prices may partly make that decision for you.

EVs and hybrids have their own appeals and talents so it depends on your priorities – a standard hybrid isn’t eligible for the FBT exemption like EVs and PHEVs (only until March 31, 2025) are, but a hybrid will likely retain a stronger resale value in relation to its original price.

That said, with the adjustment in pricing on EVs you’re also unlikely to experience the same sort of dramatic depreciation that hit your Tesla.

And keep in mind that a PHEV also requires the same regular servicing (usually annual) even if you hardly ever use the petrol engine. That means an added cost and inconvenience.

Solid state battery tech will likely be reserved for higher-end products to start with, so you've probably got a buffer before used mainstream EV values are impacted. And I wouldn’t expect to see solid state batteries in Australia until the end of the decade at the earliest.

Question: I have a Honda Civic 2013, which is fantastic – always looked after. I have had all Hondas in the past. I am looking at getting a new or near new car. I would like an SUV I think as they are easier to get in and out of now that I am in my 70s. What would you recommend? I am thinking the Honda ZR-V? - Maureen

Answer: The ZR-V is a great place to start. If you don’t need the space you could also check out the slightly smaller HR-V, although keep in mind it only has four seats (there’s no centre rear seat).

Each has a great hybrid system, although in the ZR-V it’s only available as a top-of-the-range model, so is expensive. The HR-V has more affordable model variants if you don’t want all the luxury kit.

Others to stick on the shortlist include the Toyota Corolla Cross and Hyundai Kona Hybrid.

The Corolla Cross is one of the best options and has a terrific hybrid system.

But the base model has a skinny level of standard equipment. And a lot of dealers have queues due to supply not being able to keep up with demand.

The Kona is also a great alternative.

All three are great for different reasons. Start with the Honda but also keep your options open by cross-shopping the other two. And if you’re trading your Civic in make sure you ask for the changeover price. Some may offer you a better discount on the new car while others could pay you a higher price for your car.

Question: I am looking to purchase an EV in the next few months. My budget is between $50,000 and $70,000. I live in a regional area and commute to work about one hour on a freeway. Love a hatch (for a dog). Not a Tesla!! Would prefer bigger battery for longer trips. Any tips? - Victoria

Answer: Shame you won’t consider a Tesla because they offer great options in that price range. But I also understand the negativity some people have towards the brand, especially as Elon Musk continues to rile so many people.

Alternatives include the upcoming BYD Sealion 7. I’ve only driven it briefly overseas but it stacked up well. It’s a mid-sized SUV, so not a traditional hatch. But your pooch won’t certainly won’t be whinging about space.

Pricing is yet to be announced but BYD says it will kick off below $60K.

The Kia EV5 is also a decent buy with some normality to its look and layout (many EVs from newcomer brands can be very different in the way you operate the touchscreens, ventilation systems and other functions). And while it’s sharp value it’s not fantastic.

If you want to try one of the newcomer Chinese brands then the XPeng G6 is a good place to start. It’s loaded with gear, drives pretty well and has heaps of space. There are some big unknowns, though, including what it’ll be worth as a used car down the track and how easy (or difficult) it’ll be to get service and parts.

There’s nothing like the dealer network of bigger brands.

There are some other interesting options arriving soon, including the Geely EX5. I haven’t got behind the wheel yet but am hoping to drive one soon.

Question: I am looking at selling a Ford Ranger and getting a hybrid. I don't think I could get a fully electric vehicle as I would not be keen on having to hang around charging stations on my own if I was to travel out of Canberra (I often take trips to Wollongong or Merimbula).

My sons are suggesting I get a full electric or petrol car not hybrid, they reckon there is too much servicing as they need two types of services (not sure if this is an issue or not).

I have been looking at a few cars:

I would like to drive away for under $60K. Do you have recommendations or things I should look for? - Cherie

Answer: Let’s tackle the servicing issue first. The EV side of a hybrid generally doesn’t need any work, so its servicing requirements will be essentially the same as a petrol version.

As for your shortlist, the Sealion 6 has the best hybrid system with the ability to run for 80km or so on electricity. It’s not as surefooted on the road as some rivals (but is still fine) but makes up for it with solid value.

But as with all plug-in hybrids (PHEVs) you’ll need to charge it regularly (every day ideally) to get the benefit of being able to drive it as an EV. On your longer journeys it’ll use about as much fuel as a regular hybrid, so the big benefit is being able to charge it at home and run on electricity.

The RAV4 is nearing the end of its life and starting to show it, especially in the cabin. It’s still solid value and has a proven hybrid system that does a decent job.

The latest HS is good value, albeit slightly smaller, but it’s not as slick to drive as some rivals.

Other mid-sized SUVs you could look at include the Nissan X-Trail E-Power and Honda CR-V hybrid.

And if you’re prepared to consider an EV look at the Tesla Model Y, which is also still solid buying and gives you access to the Tesla charging network for those longer trips.

There’s an updated model arriving in May that is above your budget, although we’d expect them to do a more affordable model compared with the Launch Series currently being pre-sold. The updated version looks like it addresses some of the issues with the outgoing car, such as its firm ride.

You could also look at the BYD Atto 3 (it may be too small) and soon-to-arrive Sealion 7.

Question: I’m looking for a used EV but have heard all sorts of horror stories about poor resale values. Should I look at something second-hand or am I better off going for a hybrid or something else? I’ve only just started looking around and don’t need to make a call for a few months, but I want to make sure I do my research - Marty

Answer: It’s great you’ve got some time to think about it because there’s a lot going on with EVs, including the arrival of new brands and new models from existing brands, including the Tesla Model Y and BYD Sealion 7.

Regarding residual values, the EV market has been hit hard, in part because there have been so many price cuts to new ones. The minute you lower the price of the new examples it flows through to used models.

There’s also the issue of the technology advancing so quicky. New models typically make decent leaps in tech, range and performance, making the old ones less attractive.

But the advantage of buying second-hand is that someone else has theoretically copped the biggest depreciation hit, during the first year. So keep an eye on the listings to see what pops up.

A good place to start would be later model Teslas, the BYD Atto 3 and MG4, depending on what type of car you’re chasing. A Polestar 2 could make an interesting prestige option or you could look at a BMW iX3.

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