Best Plug-in Hybrid Cars Under $40,000(USA)

By Nelson Ireson 05/18/2023 10:00am

Splitting the difference between all-electric vehicles and traditional hybrids, plug-in hybrids aim to offer the affordability of a more conventional vehicle with a healthy dose of electric range and great gas mileage in hybrid mode. These days, there are only a handful of plug-in hybrid electric vehicles (PHEVs) available for less than $40,000, but there’s a fair range of vehicle types to choose from, so most folks should be able to find a PHEV that suits them and their budget.

Prices quoted below don’t include taxes, nor do they include title, licensing, or delivery fees. Prices quoted also don’t include incentives that may be available in your area. As always, be sure to check with your local dealers for inventory and to see which specials are available near you. Without further ado, here are the five best plug-in hybrid cars you’ll find for less than $40,000, ranked by their all-electric range.

1. 2023 Toyota Prius Prime

The redesigned 2023 Toyota Prius Prime plug-in hybrid shown from the front, plugged in and charging.

Starting Price: $32,350
Electric Range: 44 miles
Hybrid Mode Fuel Economy: 52 mpg combined

All-new for 2023 with a stylish new exterior look and an all-new interior, the 2023 Toyota Prius Prime gets amazing fuel economy, upgraded standard features, and lots of tech. Among the key upgrades to the new Prius Prime PHEV is an all-electric range of 44 miles in the SE trim level. That’s a significant increase from the previous model’s 25 miles. The base Prius Prime is the most affordable PHEV on sale in America today, but even the top-trim Prime XSE Premium starts at $39,170.

2. 2023 Mitsubishi Outlander PHEV

The 2023 Mitsubishi Outlander plug-in hybrid from a front quarter angle

Starting Price: $39,845
Electric Range: 38 miles
Hybrid Mode Fuel Economy: 27 mpg combined

While the Mitsubishi brand might not be top-of-mind when shopping for a new car, the 2023 Mitsubishi Outlander PHEV offers 38 miles of all-electric range and 3-row seating for just barely less than $40,000 starting price. Upgrade trims start above our budget, but even the base Outlander PHEV includes standard all-wheel drive (AWD) thanks to two electric motors paired with its 2.4-liter 4-cylinder engine.

3. 2023 Kia Sportage Plug-in Hybrid

Starting Price: $38,690
Electric Range: 34 miles
Hybrid Mode Fuel Economy: 35 mpg combined

All-new for 2023, the Kia Sportage is larger, more refined, and is now available as a PHEV. The 2023 Kia Sportage Plug-in Hybrid is a stylish, efficient, and practical PHEV with a somewhat sporty look and feel. It comes standard with AWD and is available in X-Line and X-Line Prestige trim levels.

4. 2023 Kia Niro Plug-in-Hybrid

Starting Price: $33,840
Electric Range: 33 miles
Hybrid Mode Fuel Economy: 46 mpg combined

Call it a wagon, call it a hatchback, call it an SUV. Whatever you call it, the 2023 Kia Niro Plug-in Hybrid is spacious, practical, and an excellent value. Significant updates for 2023 make the Niro PHEV even more efficient and improve the electric range from 26 miles to 33 miles. Like the Prius, the base Niro is among the most affordable PHEVs around, and even the high-spec Niro SX Touring PHEV starts at $39,590.

5. 2023 Hyundai Tucson Plug-in Hybrid

Starting Price: $37,500
Electric Range: 33 miles
Hybrid Mode Fuel Economy: 35 mpg combined

Muscular styling and lots of standard equipment give the 2023 Hyundai Tucson Plug-in Hybrid a great starting point. However, interested shoppers should be aware the Tucson PHEV is only offered for sale in California, Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island, and Vermont. Still, if it’s available near you, the Tucson’s 33 miles of electric-only driving and excellent specs — including standard AWD — make it an excellent choice for those seeking lots of utility in their PHEV.