Does It Make Sense to Upgrade to a PHEV?

We’ve been driving our Mazda CX-5 for years. It’s reliable, comfortable, and most importantly, paid off. But our kid has been complaining about our “old” car recently (really, 10 years is not that old), our kids also seem to lust after minivans and cars that have more than six seats, we have had an increase in our driving habits (tournaments, ice time, it is a lot of driving), and did a long road trip to the adjacent province this year. Lots of reasons why we are thinking of upgrading to a larger car.

It’s a bit painful to fill up the gas tank so often with the fluctuating gas prices, so we thought it might be a good idea to get a fuel efficient car for our next car.

Lately, plug-in hybrids (PHEVs) like the Mazda CX-90 PHEV have been getting a lot of buzz. They promise electric-only driving for short trips but still use gas for longer ones, the best of both worlds. We aren’t keen on getting an electric only car just because we anticipate road trips in the future and the idea of planning your road trip based on car charging spots doesn’t appeal to me.

But here’s the real question: does it actually make financial sense to upgrade to a PHEV, or should we keep our current CX-5 and drive it to the ground?

Let’s crunch the numbers.

What Is a PHEV, and Why Do People Buy Them

A PHEV (Plug-In Hybrid Electric Vehicle) has both a gas engine and an electric motor powered by a rechargeable battery. You can plug it into a standard outlet or a home charger to drive short distances (usually 30–50 km) using electricity only.

Once the battery runs out, the gas engine automatically takes over. That means you can do your daily errands without using gas — and still road trip without worrying about charging stations.

In theory, you save money on fuel and reduce your emissions.

Sounds ideal doesn’t it?

It’s typically more expensive to buy PHEV, hybrid vehicles, or electric vehicles, but I look at it like a buffet. It’s more expensive upfront but the regular costs are reduced which makes you feel like it is ‘worth’ it. Psychological soothing. You forget about the big expense after you pay for it (unless you are financing or leasing your car I suppose). Whereas when you have a gas vehicle, you have to pump gas more often and thus the pain point of parting with your money is felt more often.

Comparing Apples to Apples: CX-5 vs. CX-90 PHEV

Here’s a real-world comparison between our current 2015 Mazda CX-5 (with 120,000 km) and the new 2024 Mazda CX-90 PHEV.

Vehicle	Fuel Economy	Electric Range	Estimated Annual Fuel Cost	Notes
2015 Mazda CX-5	9.0 L/100 km	None	~$2,160	Paid off, moderate maintenance
2024 Mazda CX-90 PHEV	9.4 L/100 km (gas) + 42 km EV	42 km	~$1012	$54,900 MSRP

Assumptions:

• 15,000 km/year
• Gas price: $1.60/L
• Electricity: $0.13/kWh
• 10,000 km driven on electric power

If we sell our CX-5 for around $15,000 and buy the CX-90 PHEV for $60,000 after tax, our upgrade cost is roughly $45,000.

Annual Fuel and Electricity Cost Comparison

Let’s break it down:

Old CX-5 (Gas only):
9.0 L/100 km × 15,000 km = 1,350 L
1,350 × $1.60 = $2,160 per year

CX-90 PHEV:

• 10,000 km on battery = 2,000 kWh × $0.13 = $260
• 5,000 km on gas = 470 L × $1.60 = $752
• Total: $1012 per year

Annual savings = $1,148.

That’s not bad, but it would take over 40 years of fuel savings to recover a $45,000 price gap.

Even with maintenance savings (estimated at around $1000 a year), we’re still looking at three decades to break even.

So purely from a money standpoint, upgrading to a PHEV doesn’t particularly make sense.

But It’s Not Just About the Math

Cars aren’t only financial decisions — they’re lifestyle ones. Let’s look at the non-monetary factors that come into play.

Your Driving Habits Matter Most

If your daily commute is under 40 km and you can charge at home, a PHEV makes sense. You’ll drive mostly on electricity and visit the gas station maybe once a month or less.

If, however, you’re a highway driver or you can’t charge easily, you’ll rarely see those electric savings. The PHEV will mostly run as a regular gas SUV — just heavier.

Verdict:

• City/commuter driving = Yes, makes sense
• Long highway trips = Not worth it

Cold Weather Reduces Range

Canadian winters aren’t very good to EV batteries. Expect your electric range to drop from 42 km to around 30 km in freezing temperatures, especially with the heater or defroster on.

That means more gas use and smaller savings during half the year.

Maintenance and Reliability

Our 2015 CX-5 is entering the stage where we might face some major repairs — brakes, suspension, maybe transmission work.

A new PHEV gives you warranty coverage and peace of mind for the next few years. And since electric motors have fewer moving parts, brakes and engine wear are reduced.

Still, PHEVs are more complex overall (engine + battery). Once the warranty expires, out-of-warranty battery repairs can be costly — though Mazda’s new hybrid system hasn’t shown widespread issues yet.

Insurance and Depreciation

Brand-new vehicles like the CX-90 are more expensive to insure, and depreciation is steep.

Most new SUVs lose 40–50% of their value in 5 years.

PHEVs may hold their value slightly better as fuel prices rise, but resale is still uncertain. If you change cars every few years, depreciation wipes out your fuel savings completely.

The Mazda CX-90 sales person actually recommended not buying the car outright and leasing it instead because of the depreciation. He said there will likely be a newer car available in the future with a longer electric range, so the resale value of the current PHEV CX-90 will be much less. People want more electric range.

Environmental Benefits

If part of your motivation is reducing emissions, the CX-90 PHEV is a solid upgrade.

Driving 10,000 km a year on electricity instead of gas prevents about 1.5–2 tonnes of CO₂ from being emitted.

In BC or Quebec, where electricity is mostly renewable, that’s a genuine environmental win. For some drivers I suppose, that’s worth more than the dollar savings.

Charging Convenience

Home charging is key.

If you can plug into a 120-volt outlet overnight (or better, install a 240-volt Level 2 charger), you’ll benefit fully from the PHEV.

It takes about 6-8 hours to charge on a standard 120-volt outlet.

If you live in a condo or park on the street and can’t use a charger?

Not so much. A PHEV that isn’t charged is basically a gas vehicle. No benefits.

The Math in Context: When a PHEV Makes Sense

Let’s compare a few realistic scenarios:

Scenario	Annual Savings	Financially Worth It?
15,000 km/year, charge nightly	$1,000–$1,200	Not on fuel savings alone
Mostly highway, no charger	<$300	Not worth it
20,000 km/year, charge nightly	~$1,500	Slightly better, but still long payback
Need a larger SUV anyway	—	Yes, reasonable upgrade
Current CX-5 still reliable	—	Keep it and save your cash

The Emotional Side of Upgrading

There’s also the “feel-good” factor of upgrading to a new car.

Driving mostly electric feels smoother, quieter, and cleaner. You might enjoy that instant torque when you hit the accelerator in EV mode.

And yes — avoiding gas stations for weeks at a time feels great.

If your finances allow it and you value the experience, that alone might justify the upgrade for you.

When It Doesn’t Make Sense to Upgrade

If our CX-5 is running well, paid off, and reliable, keeping it will almost always win financially.

Even with $2,000/year in fuel costs, that’s far cheaper than a $45,000 upgrade.

We could save for a future EV when prices come down and range improves.

When I cleaned our car the other day and found bits of popcorn under the booster seat, a yogurt tube wrapper underneath the passenger seat, I thought to myself- well getting a new car would just make me more irritated cleaning the same bits of popcorn under the booster seat in a new car.

When It Does Make Sense to Upgrade

✅ You’re already shopping for a new SUV
✅ You have reliable home charging
✅ You drive mostly short city trips
✅ You plan to keep the car for 8–10 years
✅ You want to cut emissions and future-proof your vehicle

In that case, a PHEV would strike a good balance between efficiency and practicality — especially in Canada, where winter range and long drives make full EVs less ideal for some.

The Final Verdict: PHEV or Keep the CX-5?

So, does it make sense to upgrade to a PHEV in Canada?

Financially: Not purely for fuel savings. The payback period is decades long.
Practically: If you have charging access and plan to keep it long term, yes.
Environmentally: Definitely — especially with clean electricity.

Keeping our CX-5 remains the smarter financial move.

Bottom Line:
Our current vehicle is still dependable, so our plan is to keep it for now until the maintenance becomes more unbearable or we hit 200,000 km on our car.

Upgrading to a PHEV offers the perfect middle ground between fuel savings, sustainability, and flexibility so we may still do this in the future.

The Mazda CX-90 fuel/gas version is similar in pricing so we would opt for the PHEV version anyway for the fuel savings.

If you have PHEV do you love it or do you have regrets?