Math lesson: how owning an Outlander PHEV can save you money
The electrified vehicle (EV) landscape seems to grow by the day, with nearly every automaker offering at least one in their lineup. It’s interesting to watch, but if you’re in the market for an EV, there’s a lot to think about. Not only is there a diverse mix of hybrids, plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs), the higher EV prices add to questions about what makes sense financially.
First, the basics. Hybrids are best for those who want to dip their toes into electrification; their electric motors help with the gas engine’s acceleration and fuel economy. Battery electrics offer zero emissions with no stops for gasoline, but they also suffer from comparatively limited range and a reliance on slow charging speeds, which deters many people from taking the fully electric plunge.
And then there are PHEVs; these vehicles feature a shorter electric range than BEVs, but the onboard gas engine means they can be driven longer distances and fueled at conventional gas stations, alleviating so-called ‘range anxiety’. And while they may still be more expensive to purchase than their purely gas-powered brethren, doing some math reveals that they make sense for many drivers.
Yes, the MSRP is higher, but when you look at the lifetime costs that come with a PHEV, you may find they make sense for your driving needs. Let’s take a look at the Mitsubishi Outlander PHEV, the best-selling PHEV SUV in Canada.
First, the basics. Hybrids are best for those who want to dip their toes into electrification; their electric motors help with the gas engine’s acceleration and fuel economy. Battery electrics offer zero emissions with no stops for gasoline, but they also suffer from comparatively limited range and a reliance on slow charging speeds, which deters many people from taking the fully electric plunge.
And then there are PHEVs; these vehicles feature a shorter electric range than BEVs, but the onboard gas engine means they can be driven longer distances and fueled at conventional gas stations, alleviating so-called ‘range anxiety’. And while they may still be more expensive to purchase than their purely gas-powered brethren, doing some math reveals that they make sense for many drivers.
Yes, the MSRP is higher, but when you look at the lifetime costs that come with a PHEV, you may find they make sense for your driving needs. Let’s take a look at the Mitsubishi Outlander PHEV, the best-selling PHEV SUV in Canada.
The 2024 Outlander PHEV starts at $48,198 for the base ES S-AWC version, going up to $58,198 for the top-line GT Premium S-AWC or $59,698 for the GT NOIR special edition. While that base price is a little more than $14,000 higher than the Outlander gas version, the Outlander PHEV qualifies for $5,000 in Federal iZEV funds, anywhere in Canada. And there’s more, depending in which province you live: Quebec and New Brunswick add up to $5,000 more; Nova Scotia adds up to $3,000, Prince Edward Island up to $2,500, British Columbia throws in up to $2,000 and Newfoundland and Labrador top up $1,500. These all add up to a big reduction in spending before you even drive off the dealer lot.
And then there are the fuel savings. First off, consider that Statistics Canada has found the median one-way commute to the workplace for Canadians is under nine kilometres. Even if you factor in dropping the kids off at school, getting groceries or going to yoga, the average daily drive would be far less than the Outlander PHEV’s 61 km of all-electric range, meaning you could drive almost exclusively on electrons – it’s like owning a battery electric vehicle (BEV), without the higher BEV sales price.
When it comes to fuel savings, the average price of electricity in Canada is 19.2¢ per kWh; that means it would cost $3.84 to fill the 20-kWh battery from empty to full. Plus, if you live in provinces such as Quebec or Ontario that have lower-than-average electricity prices, that cost would drop to under $3 per day of driving. When you stop to consider again that many people’s daily drive, from morning to night, would fall under 30 or 40 km, you start to see the real savings.
Of course, the beauty of a PHEV is that, when you do have farther to go, there’s a gas engine that can take over when the battery depletes. The Outlander PHEV has an efficient 2.4L four-cylinder engine with a fuel economy, in L/100 km, of 9.2 City, 8.7 Highway and 9.0 Combined. With the engine and electric power combined, the Outlander PHEV is rated at a remarkable 3.6 Le/100 km.
Natural Resource Canada estimates it would cost just $1,551 in fuel per year (based on 20,000 km of driving per year, with regular gasoline at $1.45/L and electricity at 16¢/kWh) for the 2024 Mitsubishi Outlander PHEV. The gas-powered Outlander, while still an efficient SUV, is estimated to cost $2,581 in fuel per year. As you can imagine, the longer you own the Outlander PHEV, the better the total cost of ownership will become overall.
Those are impressive numbers, but here’s one final thing to consider when it comes to costs, especially for those worried about the life of the lithium ion battery in the Outlander PHEV. Mitsubishi offers an unprecedented battery warranty of 10 years or 160,000 km, to go along with their equally impressive powertrain warranty of 10 years or 160,000 km; five-year or 100,000 km basic new vehicle warranty; and five-year, unlimited kilometre roadside assistance warranty.
And then there are the fuel savings. First off, consider that Statistics Canada has found the median one-way commute to the workplace for Canadians is under nine kilometres. Even if you factor in dropping the kids off at school, getting groceries or going to yoga, the average daily drive would be far less than the Outlander PHEV’s 61 km of all-electric range, meaning you could drive almost exclusively on electrons – it’s like owning a battery electric vehicle (BEV), without the higher BEV sales price.
When it comes to fuel savings, the average price of electricity in Canada is 19.2¢ per kWh; that means it would cost $3.84 to fill the 20-kWh battery from empty to full. Plus, if you live in provinces such as Quebec or Ontario that have lower-than-average electricity prices, that cost would drop to under $3 per day of driving. When you stop to consider again that many people’s daily drive, from morning to night, would fall under 30 or 40 km, you start to see the real savings.
Of course, the beauty of a PHEV is that, when you do have farther to go, there’s a gas engine that can take over when the battery depletes. The Outlander PHEV has an efficient 2.4L four-cylinder engine with a fuel economy, in L/100 km, of 9.2 City, 8.7 Highway and 9.0 Combined. With the engine and electric power combined, the Outlander PHEV is rated at a remarkable 3.6 Le/100 km.
Natural Resource Canada estimates it would cost just $1,551 in fuel per year (based on 20,000 km of driving per year, with regular gasoline at $1.45/L and electricity at 16¢/kWh) for the 2024 Mitsubishi Outlander PHEV. The gas-powered Outlander, while still an efficient SUV, is estimated to cost $2,581 in fuel per year. As you can imagine, the longer you own the Outlander PHEV, the better the total cost of ownership will become overall.
Those are impressive numbers, but here’s one final thing to consider when it comes to costs, especially for those worried about the life of the lithium ion battery in the Outlander PHEV. Mitsubishi offers an unprecedented battery warranty of 10 years or 160,000 km, to go along with their equally impressive powertrain warranty of 10 years or 160,000 km; five-year or 100,000 km basic new vehicle warranty; and five-year, unlimited kilometre roadside assistance warranty.
Those are impressive numbers, but here’s one final thing to consider when it comes to costs, especially for those worried about the life of the lithium ion battery in the Outlander PHEV. Mitsubishi offers an unprecedented battery warranty of 10 years or 160,000 km, to go along with their equally impressive powertrain warranty of 10 years or 160,000 km; five-year or 100,000 km basic new vehicle warranty; and five-year, unlimited kilometre roadside assistance warranty.
Need more? The Outlander PHEV can be charged with a 120V household plug (Level 1), a 240V charger (Level 2) or a DC fast charger (Level 3). There’s also the option to charge the vehicle while you drive, both through regenerative braking and using the on-board gas engine.
There are plenty of other reasons why an Outlander PHEV can fit your lifestyle – from it’s legendary Super All-Wheel Control system to its advanced safety features, three-rows of seating and luxurious interior. Perhaps that’s why the Outlander PHEV is the best-selling plug-in hybrid SUV in the world.
Need more? The Outlander PHEV can be charged with a 120V household plug (Level 1), a 240V charger (Level 2) or a DC fast charger (Level 3). There’s also the option to charge the vehicle while you drive, both through regenerative braking and using the on-board gas engine.
There are plenty of other reasons why an Outlander PHEV can fit your lifestyle – from it’s legendary Super All-Wheel Control system to its advanced safety features, three-rows of seating and luxurious interior. Perhaps that’s why the Outlander PHEV is the best-selling plug-in hybrid SUV in the world.