How to buy an eco-friendly car

A buying guide to purchase your first hybrid or electric car.

Our top pick: car.Loan.com Car Loans

• Min. Credit Score Required: 300
• APR: Varies by network lender
• Requirements: Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.

• Easy online application
• Fast response time
• Bad credit, no credit OK

Our top pick: car.Loan.com Car Loans

Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.

• Min. Credit Score Required: 300
• Requirements: Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.

Go to site
More info

What makes a car eco-friendly?

A green car is a car that that gets more miles to the gallon and emits less pollutants than a conventional gas or diesel vehicle, according to the Environmental Protection Agency (EPA).

Many states and counties in the US have minimum emissions requirements, but green cars exceed the minimum threshold or cut exhaust emissions entirely. To do this, they either use electric or hybrid systems.

• Hybrid

  Hybrid vehicles use both gas and electric engines to power the car. Unlike electric cars, they don’t need to be plugged in to recharge because the gas engine charges the battery. Some also utilize deceleration when braking to charge the electric engine.

  The onboard computer in the car switches between the two engines to maximize efficiency. For example, when the car is idle and during acceleration, the electric engine switches on, but while cruising, the gas engine takes over.

• Electric

  Electric cars run solely on a rechargeable battery. They are charged from charging points either at home or in public places, and some electric cars also utilize the deceleration process to charge the battery.

  And because they lack a gas engine, electric cars have no fuel tank or exhaust pipe and never need an oil change. However, they need to be recharged — usually every 50 to 100 miles — which can only be done in certain locations. The good news? There are more than 10,000 alternate fueling stations available in the US.

How can I finance an eco-friendly vehicle?

If you’ve decided on going green but aren’t sure how you can finance your car purchase, you have options.

• Car loan. Green cars are like any other car, and you’ll likely qualify for a car loan from a lender. The benefit? Some banks and credit unions offer interest rate discounts for green car purchases.
• Home equity loan. If you’ve built up enough equity in your home, you could use that money to finance your green car.
• Personal loan. A personal loan can be used for just about anything. So if you have good credit, you may be able to finance your car without using it as collateral.

Browse financing options for an eco-friendly car

Sort by:

Name	Product	Filter Values	Minimum Credit Score	Loan Term	Requirements
car.Loan.com Car Loans			300	Varies by lender	Must be a US citizen with a current US address and employed full-time or have guaranteed fixed income.	Apply with a simple online application to get paired with a local auto lender. No credit and bad credit accepted.	Go to site More Info		loading Fetching your data...
Auto Credit Express Car Loans			300	Varies by lender	Must be employed full-time or have guaranteed fixed income of at least $1,500/month and be a current resident of the US or Canada.	Get connected with an auto lender near you, even if you have bad credit.	Go to site More Info		loading Fetching your data...
LightStream Auto Loans			Good to excellent credit	2 to 7 years	Good or excellent credit, enough income or assets to afford a new loan, US citizen or permanent resident, 18+ years old	Quick car loans from $5,000 to $100,000 with competitive rates for borrowers with strong credit.	Go to site More Info		loading Fetching your data...
LendingClub Auto Refinancing			Fair or better credit	From 2 years	Car must be less than 10 years old with fewer than 120,000 miles. Current loan must have a balance between $5,000 and $55,000 and at least 24 months left in its term.	Lower your monthly car payments and save on interest through a fast and easy online application process.	Go to site More Info		loading Fetching your data...
RateGenius Auto Loan Refinance			510	Varies	Income of $2,000+/month, vehicle has less than 150,000 miles and is no older than 8 years, loan balance is between $10,000 and $100,000, debt-to-income ratio is less than 50%	Connect with a network of over 150 lenders to refinance your car loan.	Go to site More Info		loading Fetching your data...
LendingTree Auto Loans			Good to excellent credit	Varies by lender	Must be a US citizen and 18+ years old. Must have good to excellent credit.	Compare multiple financing options for auto refinance, new car purchase, used car purchase and lease buy out.	Go to site More Info		loading Fetching your data...

Compare up to 4 providers

Clear selection

Compare

How much do green cars cost?

Green cars are more expensive than gas vehicles. An electric hatchback may sell for $40,000, and mid-size sedan hybrids go for around $30,000. Comparable gas models for both might cost as low as $20,000. Here are a few top fully electric and hybrid models.

What are the benefits of an eco-friendly vehicle?

Eco-friendly vehicles have a range of benefits for both the owner and the community. Here are some reasons to drive a green car:

• Fewer emissions. Green cars have low-exhaust emissions, reducing the amount of carbon released into the atmosphere.
• No- or low-gas costs. While hybrids require gas, they consume much less than regular cars. Electric cars don’t use any gas but do require electricity to recharge.
• Cleaner cities. Car emissions are a major contributor to poor air quality in cities. By driving a vehicle with low emissions, you won’t contribute to the smog in your area.
• Less noise. Electric engines are quieter than gas engines. This reduces the amount of road noise in cities.
• Tax credit. When you buy a hybrid or electric car, you could be eligible for a tax credit through your state or the federal government .
• Increasing consumer demand. By generating demand for electric vehicles, you’re helping improve the technology and bring down the price. Doing so makes them more attractive to others, creating a cycle of benefits for everyone.

If you’re buying a fully electric car, then your vehicle won’t produce any emissions. The benefits with hybrids may not be as clear if the manufacturer reports fuel economy that’s unattainable in your situation.

Research prospective cars before you commit to buying one by looking at user reviews and and other independent, unbiased articles about emissions and fuel economy on most new vehicles.

A few hybrid and electric cars to consider

Here are some of the most eco-friendly cars found on the road across the states:

• Toyota Prius. An early hybrid and perhaps one of the more common green cars. They come as a medium sedan or hatchback and are similar to a Toyota Corolla.
• Nissan Leaf. A fully electric hatchback with a small solar panel for internal accessories. It can do a partial recharge in 30 minutes from specific quick-charge points.
• Mitsubishi Outlander PHEV. This one is for the whole family. A hybrid SUV which has been reported to get up to 74 MPG from its electric and gas engines.
• Ford C-Max Energi. One of the cheaper hybrids, the rear seat battery may make it cramped for your passengers. However, its performance makes up for it if you only have occasional guests.
• BMWi3. A fully electric hatch for city drivers who appreciate luxury German engineering.
• Tesla Model S. Tesla only makes electric cars. They aren’t cheap, but they’re designed to perform like a sports car. If you want to drive an uncommon car, the Model S should put you in the spotlight.

What to watch out for

• The cost. Green cars are much more expensive than a comparable gas vehicle. Even considering the savings on gas, oil and maintenance, it would take a few years to offset the upfront expense.
• The limited driving range. Range refers to how far the vehicle can travel before it needs to refuel. Compared to gas vehicles, electric cars have a very restricted range.
• Limited chances to power up. Not all gas stations have recharge stations, such as your home or a public recharge station.
• It’s a new technology. Green car technology is still developing and still working out the kinks.

4 tips for fuel-efficient driving

Even if you can’t afford to buy a new car right now, you can substantially reduce your vehicle’s emissions just by changing your behavior. Here are some handy green driving tips:

• Accelerate slowly and smoothly. Engines use the most fuel when starting up or accelerating. Try to limit rapid or erratic acceleration.
• Anticipate traffic conditions. The most efficient way to drive is to maintain a fairly constant speed. Rapid slowing and accelerating wastes fuel. Anticipate the conditions ahead to minimize the amount you need to slow down or speed up. And of course, don’t be afraid to use cruise control on the highway.
• Remove unnecessary equipment. Extra weight and accessories decrease the efficiency of your vehicle. Roof racks cause drag and tools add extra weight. If you don’t regularly use or need them, take them off.
• Maintain your vehicle. Basic maintenance such as checking tire air levels and engine oil is an easy way to keep your car running efficiently. Performing routine services will also help identify problems to keep your vehicle operating optimally.

Bottom line

Green cars are becoming increasingly viable for those living in cities. If you’re concerned about your vehicle’s carbon emissions and its effect on the environment, then consider an eco-friendly alternative. Be aware of the additional upfront cost and limitations before you commit, and compare your financing options when you’re ready to buy.

Frequently asked questions

• What is MPGe?

  MPGe stands for “miles per gallon of gasoline-equivalent.” This term is used by the EPA and manufacturers to compare energy consumed by electric and hybrid vehicles with gas-powered vehicles.

• Is a green car worth the investment?

  It depends. If you’re able to handle the high purchase price, then you’ll likely be pleased with how far green cars have come in the past few decades. In addition, you’ll be making it easier for manufacturers to reinvest in the technology, lowering the price and making it more affordable for everyone down the road.

  If you don’t think you can handle high monthly payments from a car loan, it might be best to hold off on such a large purchase and instead follow our green driving tips listed above.

• Should I opt for hybrid or electric?

  The choice really depends on how you plan to use your car. If you’re in an area that has plenty of charging stations and you drive short distances, an electric car is certainly a greener option than a hybrid. If you’re afraid you might run out of a charge on long drives or don’t have many charging stations in your area, a hybrid will be the better option for your needs.

• Is an electric car truly emissions-free?

  As far as actually emitting fumes, yes, an electric car is emissions-free. However, if coal-powered electricity is used to charge the car, then it is still responsible for carbon emissions. Electric cars can only be truly emissions-free if a renewable source of electricity is used to charge them.

  In addition, the production of an electric car will consume more fossil fuels on average than a gas-powered vehicle. This may make some drivers wary, but this initial pollution is outweighed by the lowered lifetime emissions of an electric battery. Studies have found that electric cars produce 80% less emissions than equivalent gas-powered cars.

  Overall, an electric car will still produce emissions. This doesn’t mean it’s not worth it! You’ll still be making huge strides in reducing your footprint size when you drive an electric vehicle.

• What loan options do I for the Mitsubishi Outlander PHEV?

  You could get Mitsubishi financing through its partner Ally Financial. But it might not be the cheapest option. You might want to explore getting an auto loan online or through a bank to finance a Mitsubishi.

_{Picture: Shutterstock}