Hybrid cars are experiencing a surge in popularity and significant price reductions, with savings reaching up to £13,300 on select models. This trend comes as governments re-evaluate and adjust targets for electric vehicle (EV) sales, creating a more favorable market for hybrids.

Recent analysis by Insider Car Deals reveals that average savings on new hybrid cars have increased to 11%, equating to approximately £6,045 per vehicle, up from 8.7% (£5,110) a year ago. These discounts now surpass those typically offered on petrol cars, which average 10.3% or £4,599, and are nearing the average savings on EVs, which stand at 11.9% or £6,455.

Hybrid Sales Incentives

Several factors are contributing to the increased discounts on hybrids. "With government planning to, yet again, move the goalposts on EV sales targets, hybrids are becoming an increasingly popular option for Britons," noted Pat Hoy, founder of Insider Car Deals. While hybrids do not directly count towards Zero Emission Vehicle (ZEV) mandates, they generate significant 'ZEV credits' for manufacturers by reducing overall fleet emissions. This provides manufacturers with an incentive to promote hybrid sales.

Furthermore, manufacturers reportedly find hybrids more profitable to sell than EVs, largely because they do not need to absorb as much of the cost associated with large EV battery packs. Despite these incentives for dealers to push hybrid sales, a notable "Discount Gap" persists between the prices initially offered to consumers and the lowest prices achievable through negotiation. Insider Car Deals identifies this gap, with their mystery shoppers consistently negotiating better deals than those typically presented to the public.

"We've found the average discount gap on the most-negotiable hybrids is £1,213. That's money that should be in your pocket and not the dealer's," Hoy stated. The service provides buyers with a Personal Deal Sheet for a fee, detailing available discounts and target prices, or can negotiate on the buyer's behalf.

Top Hybrid Deals

The top ten hybrid models with the biggest savings have been identified, with discounts ranging from 15.5% to 24.6%:

  1. Audi A5 saloon (PHEV): Offers the largest saving at 24.6% (£13,300), with the eHYBRID 299ps Quattro S Line S tronic variant priced at £54,155. The discount gap here was found to be £1,551.

  2. VW Golf (PHEV): The 1.5 TSI eHybrid Style DSG variant sees a 23.2% saving (£8,686), with dealers typically holding back £1,150 of the achievable discount. Pat says the 23.2% discount currently available on the PHEV Volkswagen Golf reflects how hard the German brand and its dealer network are working to shift them

  3. Mazda CX-60: Discounts reach 21.6% (£11,394) on the 2.5 PHEV Homura Plus, with the widest discount gap of £1,861 identified.

  4. Nissan Juke (HEV): A 20.2% saving (£6,129) is available on the 1.6 Hybrid 143ps N-Connecta Auto, with a discount gap of £840. The Nissan Juke Hybrid with a 20% discount is highly appealing. Insider Car Deals says there is not a huge gap between what customers are typically offered and the best deal available

  5. Skoda Kodiaq (PHEV): The 1.5 TSI iV 204 SE L DSG is available with a 19.9% discount (£8,915), and a discount gap of £1,260. The Kodiaq is a roomy plug-in hybrid family car, but at almost £45,000, the 1.5 TSI SE L isn't cheap. That said, Insider Car Deals negotiated almost a fifth off the Skoda list price

  6. Toyota C-HR (HEV): Savings of 19.9% (£7,900) are offered on the 1.8 Hybrid 140 GR Sport CVT, with a discount gap of £1,194. The C-HR is one of Toyota's best-selling cars, but despite this, you can still negotiate almost a fifth off the OTR price if you get Insider Car Deals to do the bargaining for you

  7. Toyota Corolla (HEV): The 2.0 Hybrid 178hp Design CVT model offers a 19.7% discount (£6,730), with a discount gap of £850. Drivers can save almost a fifth off the price of a British-built Toyota Corolla family hatchback with a self-charging hybrid drivetrain

  8. MG HS (PHEV): The 1.5 T-GDI PHEV Trophy 5dr Auto sees a 16.7% discount (£5,836), with a discount gap of £1,262. Insider Car Deals says it can get buyers £4,500 off the price of a PHEV MG HS, which is £1,200 more than customers are typically being offered by salesmen

  9. BMW X1 (PHEV): Discounts are 15.6% (£6,986) on the xDrive 25e xLine 5dr Step Auto, with a discount gap of £1,383. There's almost £7,000 in discount to be negotiated off the price of a new BMW X1 PHEV, if you know how to haggle

  10. Peugeot 308 (PHEV): The 1.6 PHEV 195 GT e-DSC7 variant has a 15.5% saving (£5,771), with the narrowest discount gap of £778. Insider Car Deals found it could negotiate over £5,500 off the price of a new Peugeot 308 PHEV, which is pretty close to what typical buyers are being quoted in showrooms

These figures represent total savings, including dealer margin discounts, manufacturer cash savings, government grants (where applicable), and finance deposit contributions tied to Personal Contract Purchase (PCP) offers. All finance terms are illustrative and buyers are advised to seek a full written quotation from a dealer before purchase.