Used 2019 Crosstrek PHEV vs ICE Decision

Mid-2024, we were somewhat unexpectedly in the market for a vehicle. When we bought 2 new cars almost 10 years ago, I vowed/predicted that my next vehicle purchase would plug in--possibly fully electric, and minimum plug-in hybrid. Not great timing, though,, because EVs still carry a stiff premium and have somewhat limit selection, PHEVs aren't cheap either and are less attractive now that full electric is common. And obviously terrible timing to commit to a new ICE vehicle. 

So we were definitely going the used route--about 5 years old, max 60K miles. The car would be my wife's, and she wanted a Subaru Crosstrek. She pointed out that it does have a plug-in hybrid option. I did some research. The Crosstrek seemed very solid, I couldn't come up with any reason to object to the ICE version--other than the fact that it was ICE. There are alternatives obviously, but nothing stands out, so if she wants a Crosstrek, why not?

But the reviews on the Crosstrek plug-in hybrid were very negative. So negative that I initially rejected the hybrid option it out-of-hand. But then I thought more about why the reviews were negative:

1. High cost: PHEV is only available in Limited (top) trim level, which already commanded about $10K over base. PHEV adds $7000 on top of that.
2. Worst-in-class electric range of 17 miles.
3. Battery pack eats into cargo space.

#3 was not too big a deal for us, since we don't have kids to haul around, and our other vehicle is a minivan. #2 is definitely a bummer, but 17 electric miles is better than none, so it really comes down to cost.

Regarding cost, we were already in the market for the top-line Limited trim--the only trim offered for the PHEV--so the PHEV premium new would have been $7000 (that's in 2019 dollars & prices). In researching used 2019 Crosstreks, I noticed the hybrid only cost $3000-4000 more (2024 dollars) than the ICE with Limited trim line. Quite a discount. After the requisite several days of agonizing weighing the decision, I decided rationalized going with the hybrid.

My rationale involved multiple dimensions, of which cost was only one among several.

Cost: at our annual mileage and gas/eletric costs, the annual savings would be about $300. Not compelling on its own, but worth maybe half of a $3000 premium (applying a financial discount factor for the time value of money).

Environmental: I expect the PHEV as driven by us to get 45 mpg, vs 29 for the standard ICE. That is a meaningful reduction in CO2. If gas cost what it should, I wouldn't have to think past cost, so I weight this about equal to cost.

So the first 2 factors make it a toss up. The deciding factors that pushed my rationalization engine over the finish line, to go PHEV:

Electric Niceness: for those 17 city miles, the smooth & quiet of electric is a pleasant thing.

Power: Nobody buys a Crosstrek for its power. I'm not a power guy, so that's fine. Still, the hybrid is about 10% better for pickup, so that's also a nicety, if it comes along for the ride.

Reverse Range Anxiety: the primary driver of the Crosstrek is known to be in a rush and come home with a tank run so low that it requires a separate trip, later that evening, to be sure there is enough gas to get to the destination in the morning. With the 17 magical electric miles, that concern disappears.

Fast Heatup: also a nice thing to have when you live in Minnesota.

There were a couple of negatives factors to consider for PHEV:

1. Hard to get outside of CA and the few other states they were sold new (never available new, for love or money, from MN Subaru dealers).
2. Limited color selection.

As luck would have it, a very attractive 2019 showed up in Carmax just when I had made my decision. It carried only a $250 transportation charge, which is as good as it was ever going to get. Unfortunately it was white--just about my last choice for color. I sucked it up, and white it was.