Combustion, hybrid or electric: which car should you choose today?

Choosing a car looks simple — until you start looking closer. Combustion, hybrid or electric: each option has its own logic, its own costs and its own ideal use case. And the right answer doesn’t depend on which technology is “best”, but on how and where you actually drive.

In this article we’ve laid out every option available today, the real pros and cons, the costs, and a simple way to choose without long calculations. 

Four options you’re choosing between

Today there are essentially four main powertrain types, and each suits a different driving profile.

Combustion cars (petrol, diesel) still form the backbone of Estonia’s fleet — one of the oldest in the EU, with some of the largest engines (OECD). They’re a mature, predictable technology with a dense fuel-station network and strong residual values, especially diesel models driven over long distances. But the market is shifting: after Estonia’s new motor vehicle tax took effect, the share of newly registered electric cars roughly doubled from around 5% to 10%, while hybrids climbed from about 25% to nearly 40% (OECD).

Mild hybrids (MHEV) are conventional combustion cars with a small electric “assistant” that helps at takeoff and trims fuel use during cruising. They can’t be plugged in — the battery charges as you drive. A convenient but modest step toward saving.

Full and plug-in hybrids (HEV, PHEV) are now the most popular new-car choice in Estonia: hybrids grew to nearly 40% of new registrations after the tax reform (OECD). A plug-in hybrid can be charged from the grid and driven on electricity alone in the city, while relying on the combustion engine for longer trips.

Electric cars (BEV) are the fastest-growing segment and the most favoured under the new tax: fully electric vehicles are exempt from the CO₂ component of the registration fee, which lowers their overall tax burden compared with combustion cars (European Alternative Fuels Observatory). They offer instant torque, quiet driving and the lowest running costs — but the choice depends on your ability to charge and the distances you cover.

💡 Not sure which type fits you? Browse the MyBee car catalogue — you’ll find every option in one place, with a fixed monthly payment. 

How each option looks on cost

The price on the windscreen is only part of the truth. What really matters is the full picture: fuel or electricity, insurance, servicing, tyres and residual value — and, since 2025, the motor vehicle tax.

Electric cars are cheapest to run. There’s no engine oil or gearbox fluid to change, and regenerative braking means brakes wear minimally. Mechanically they’re simpler than combustion cars, so servicing costs less. On top of that, fully electric cars fall outside the CO₂ component of Estonia’s registration fee and generally benefit from lower car-tax rates (Estonian Tax and Customs Board).

Hybrids are the sweet spot in the city. They cut fuel use noticeably in stop-start traffic without any charging effort, which makes them a practical choice when plugging in isn’t an option and your daily routes stay urban.

Combustion cars are predictable but getting pricier. The cars themselves are cheaper to buy, but fuel, insurance and servicing keep rising — and since January 2025 the motor vehicle tax, which combines a registration fee and an annual tax based on CO₂ and weight, adds a recurring cost that hits higher-emission cars hardest (Transpordiamet).

A couple of nuances worth keeping in mind: electric-car tyres tend to wear faster due to higher weight and instant torque, and in cold weather a BEV’s range drops because energy goes to heating the cabin. 

Powertrain by how you drive: a quick guide

Rather than comparing technologies in the abstract, it’s easier to answer one question — how do you drive?

Choose electric if you cover up to ~50–150 km a day, can charge at home or at work, and your routes are mostly urban. You’ll get the lowest running costs, the most favourable tax treatment and the quietest, smoothest drive.

Choose a plug-in hybrid (PHEV) if you want to drive on electricity in the city but regularly travel longer distances, and charging isn’t guaranteed everywhere. Important: a PHEV only pays off if you charge it regularly — otherwise you’re carrying extra weight for nothing.

Choose a full hybrid (HEV) if there’s nowhere to charge but you want lower fuel use in the city with zero extra hassle. It’s the safest “can’t go wrong” choice right now.

Choose combustion if you cover very high mileage on highways, often drive in the regions, and value predictability and a dense fuel-station network.

💡 You can try any of these without a long commitment — see how long-term rental works. 

Why the ownership model matters as much as the powertrain

In a transition period, when technology and taxes change every year, the biggest risk is locking into one option for five years and regretting it later. With Estonia’s fleet among the oldest in the EU and a brand-new motor vehicle tax now in force, choosing well matters more than ever — and charging infrastructure in your area may not be sufficient yet.

That’s exactly why more and more drivers choose long-term rental over buying. The powertrain decision stops being a risky lock-in: if an electric car doesn’t suit your routine yet, pick a hybrid today and switch to electric later — without worrying about residual value or unexpected repair bills. Insurance, servicing and tyres are all included in one fixed monthly payment. 

In short: what should you choose?

There’s no single right answer, only the best fit for your case. Electric wins on running costs, tax treatment and city comfort if you can charge. A hybrid is the safe all-rounder. Combustion still makes sense for high mileage and the regions. And long-term rental lets you decide calmly — without long-term risk and with predictable costs.

💡 Want us to help pick the best option for you? Leave a request and we’ll prepare an offer. You can also simply browse the cars or read how long-term rental works. 

Frequently asked questions

Which is cheaper — electric or hybrid?

Electric is cheapest to run: no oil or gearbox-fluid changes, minimal brake wear, and a “top-up” of electricity usually costs less than fuel. In Estonia, electric cars also benefit from a lower motor vehicle tax. But the overall benefit depends on whether you can charge and how far you drive — if there’s nowhere to charge, a hybrid may be more practical.

How does the powertrain affect the motor vehicle tax?

Since January 2025, Estonia’s motor vehicle tax combines a registration fee and an annual tax based on CO₂ emissions and weight. Fully electric cars are exempt from the CO₂ component, so they carry the lowest tax burden, while higher-emission combustion cars are taxed most (Estonian Tax and Customs Board).

Is a plug-in hybrid (PHEV) worth it?

Yes, if you charge the battery regularly — then you drive on electricity in the city and rely on the combustion engine for longer trips. If you can’t charge, the PHEV’s advantages go unused and a full hybrid is the better pick.

Does an electric car work for long trips and winter?

It does, but factor in that range drops in cold weather and that charging infrastructure along the route matters on long trips. If you frequently travel long distances without guaranteed charging, a hybrid gives more flexibility.

Why choose long-term rental instead of buying?

Long-term rental turns car costs into one fixed monthly payment that includes insurance, servicing and maintenance. During a technology and tax transition, it lets you change powertrain without worrying about residual value or unexpected repair costs.