Question of the week: Does the new ZEV mandate mean hybrids are a good purchase?

Dear Honest John,
"I saw in your news story that the government have changed the ZEV mandate, so that hybrids and plug-in hybrids will still be sold until 2035. I'm trying to decide on my next new car, and the constant changing of the rules makes it difficult to decide on the best option for me. Do the new rules mean a hybrid is now a better option than an EV?"
- JK
Dear JK,
The big news for new car buyers this week was that the government has changed the ZEV mandate. You can read more about this here, but arguably the most important part is that hybrids and plug-in hybrids can continue to be sold until 2035, rather than the original cut off of 2030.
If you're in the market for a new car and are weighing up the powertrain options then this new may make your decision a little easier, but the reality is that if you're shopping right now then the most important factor is which option works best for your current circumstances.
Once the 2035 deadline has passed it will of course limit the options for new car buyers, but how this will affect used values is hard to predict. On the one hand it could mean values of used FHEVs and PHEVs fall more rapidly if EVs climb in popularity and the charging network continues to expand rapidly, but it could also mean values firm up as some buyers remain sceptical about EVs.
It's also hard to predict how VED rates will change in the future which could also affect used values, but it seems likely that respective governments will continue to promote EVs as the future of private motoring, with the likelihood that more traditional powertrains will be taxed more heavily.
In the meantime, depending on how often you plan to replace your car, if at all, you have ten years to see how it all plays out, and it makes the most sense to buy the car that works for you now rather than trying to predict the vagaries of government policy.
What small hybrid do you recommend as a long term purchase?
