Electric or traditional: what kind of engine for your new car?
2 min
Warning: borrowing money also costs money.
Are you hesitating between a car with an electric, hybrid or conventional internal combustion engine? For the time being, consumers are still free to choose the type of vehicle they purchase. However, before making a decision, it is best to weigh up all the advantages, disadvantages and costs.
What’s the best choice today?
Europe aims to make all vehicles emission-free by 2035. However, not everyone is ready for that yet. Are there sufficient charging options near your home or workplace? What is your budget? What minimum driving range do you need? For many private individuals, a plug-in hybrid currently offers a good compromise before switching to a fully electric vehicle. But there are other options, too:
- As a city dweller, you might not need a car at all. Electric scooters, bicycles, hoverboards and car-sharing schemes are all sustainable alternatives that promote greener mobility.
- A second-hand car with an electric, hybrid or conventional engine could also be a good option. A reliable used car that is relatively new is often cheaper and more environmentally friendly than a brand-new vehicle. This choice can give you some extra time before switching to an electric vehicle entirely. BNP Paribas Fortis finances young second-hand vehicles that are less than three years old at an attractive rate via its instalment loan for used cars*.
Electric is future-readt
The main advantage of an electric vehicle is its environmental benefit. A 100% electric vehicle (EV) has no internal combustion engine and therefore produces no CO2 emissions. From 2035 onwards, cars that are emission free will be the only ones allowed to be sold anywhere in the European Union. From 2030, many cities will also ban diesel vehicles. Until then, it is up to you to decide when to make the switch.
How much does an electric car cost?
A ‘green’ car is usually more expensive to buy than a ‘conventional’ one. However, there are other financial advantages. When all factors are taken into account, the average monthly cost of a ‘green’ car is not always higher than that of a conventional car with an internal combustion engine. Some key elements to consider when calculating the average monthly cost of a car are:
- instalment loans for new environmentally friendly vehicles*. Since 2023, this reduced rate has been aligned with the European standard and applies only to vehicles with CO2 emissions of less than 50 grams.
- A Private Lease from Arval is advantageous from the outset. With Private Lease, you only pay for the annual use of the car (including maintenance, insurance and taxes). You do not have to worry about unexpected costs, nor do you have to resell the car. The permitted annual mileage is specified in the contract.
- AG offers insurance at a reduced price for electric and hybrid vehicles.
- Maintenance costs, registration tax and annual road tax are lower for electric cars.
- Residual values evolve more favourably for electric vehicles than for conventional cars.
- An electric car is cheaper in terms of energy costs, especially if you have your own charging point and solar panels.
How can you easily charge your electric car?
You always need a power socket to charge an electric vehicle. However, it is not always easy to park close to a charging point. Furthermore, outside cities, the network of charging stations in our country is still relatively underdeveloped. Having your own charging point is ideal. If you wish, you can include the cost of a charging point in the instalment loan for a new environmentally friendly car*, provided you purchase the charging point at the same time as the vehicle. If you order the charging point later, an instalment loan for soft mobility* is an option. Since 1 September 2024, private individuals installing a home charging station are no longer eligible for a tax reduction.
Driving range, charging speed and driving experience
The actual driving range of the most common electric cars currently lies between 300 and 600 kilometres. It is up to you to decide whether this is sufficient for your daily use and/or travel. Charging speed is also an important consideration. This varies depending on the model and charging station, ranging from around 30 minutes for a fast charger to 5–10 hours for a standard socket. Overall, however, these inconveniences appear to be manageable. A survey of 2,000 Belgians* shows that the majority of drivers who drive electric are satisfied with their driving experience (75%), range (68%) and charging time (67%).
*Survey conducted by Profacts on behalf of BNP Paribas Fortis.
What are the benefits of a plug-in hybrid car?
Cars with conventional internal combustion engines are still the most widely used means of transport in our country. However, due to evolving environmental standards and the legislation that accompanies them, they will inevitably disappear from the roads in the long term. During the transition to fully electric driving, plug-in hybrids can play a role. They can be driven electrically and charged at home using a standard socket, while still having a combustion engine as backup, which gives them a driving range comparable to that of a conventional car. However, their environmental benefits should not be overstated. In practice, they emit more CO2 than official test results suggest. This is because many drivers do not charge their cars often enough, and the electric-only range is limited.
Did you know? A plug-in hybrid may qualify for favourable instalment loan conditions* and an ecological preferential rate (for cars with CO2 emissions of less than 50 grams per kilometre) and the associated insurance.
Thinking about a new car? There are attractive financing and insurance solutions available for environmentally conscious vehicles.