As driving employees continue their march away from prescriptive company cars toward programs that enable personal choice, they’re entering a car market that’s arguably never offered more options.
With more than 40 brands on sale in the United States—and major marquees like Ford, Toyota and Chevrolet boasting more than 20 models each—there is quite literally something for everybody in 2025’s new vehicle lineup.
Before driving employees even consider the pros and cons of buying or leasing or other budgetary considerations, they really need to hone in on the best kind of vehicle for their personal and professional needs. This includes both the size and style of the new car—for instance, a truck for hauling products, or a luxury sedan for creature comforts—as well as evaluating the drivetrain that underpins any new model, and what that will mean for their wallets and driving habits long-term.
This is especially important in the context of vehicle reimbursement strategies. That’s because programs like FAVR, for instance, which take into account fuel costs and other variable factors, can quickly upend initial calculations on one kind of vehicle versus another.
In this blog, we’ll unpack the most popular drivetrains on the market and the key considerations you must bear in mind before choosing your next new car.
Today’s most popular drivetrains
To kick the conversation off, let’s identify which drivetrain options are the most prevalent and widely available in 2025.
Internal Combustion Engines (ICE)
Like most modern drivers, you’re likely familiar with the traditional Internal Combustion Engine (ICE) models that require you to fill up at the gas station. These have been the industry standard since the Model T, where engines convert chemical fuel (ie. Gasoline, diesel, ethanol) into mechanical energy that powers the vehicle.
While there have been many advances to the standard ICE over the decades—including across-the-board improvements in fuel efficiency—these models are still characterized by their greenhouse gas (GHG) emissions as part of the conversion of chemical fuel to mechanical power.
Hybrids
When you hear hybrids, the trailblazing Toyota Prius likely comes to mind, and for good reason: It’s widely considered the most successful mass-market alternative to traditional ICE cars to hit the market in modern times.
Hybrid vehicles are formally defined as any model that combines two or more different power sources to create the mechanical energy necessary for mobility. The most common configuration is the gasoline-electric hybrid—including the Prius and the majority of other 2025 hybrid offerings—which integrates an ICE with an electric motor and a battery, saving fuel and reducing GHG emissions.
Electric Vehicles (EVs)
As the name suggests, electric vehicles leverage a battery that fuels an electric engine, foregoing the gasoline tank and ICE configuration altogether. While electric engines are nothing new—in fact, early EVs were being manufactured in the late 1800s—they’ve failed to grab a mass-market stronghold until recently.
That’s thanks to significant upgrades in charging infrastructure, as well as greater investment from both private investors and federal governments in the march toward lowering GHG emissions. (It’s important to note, however, that while EVs themselves may not produce tailpipe emissions akin to their ICE or Hybrid counterparts, they rely on outside sources of electricity that may be driving Scope 2 or Scope 3 emissions).
Breaking Down Total Cost of Ownership (TCO)
There are even more nuances, caveats and exceptions to these three broad categories of drivetrains. For most consumers, however, the choice to pick an ICE model over a Hybrid or EV comes down to two factors: Environmental impact, and the total cost of ownership (TCO).
Environmental Impact
It may seem intuitive that the models that drive the most direct GHG emissions—your ICE vehicles—would be the worst option for sustainability-minded drivers. That’s not necessarily the case, however, when you actually start to break down how corporate GHG emissions are measured and categorized.
For a deeper dive into understanding the nuances of measuring environmental impact, check out our recent blog where we break down Direct and Indirect measures, as well as the 3 Scopes that define emissions broadly.
For the TL;DR—which we alluded to earlier—the fact is that even electric power may come from a GHG emitting source that simply pushes the ‘ownership’ of the direct emissions ‘out of scope’ for an individual or business.
Through this lens—and with consideration for the TCO—a high-mileage ICE or even Hybrid model may actually be the better option for both sustainability and affordability.
True Costs and Viability of ICE Alternatives
With some more perspective on the true environmental impact of this buying decision, you then want to consider how viable it will be to use an alternative drivetrain for both work and personal use. Some key considerations include:
- Cost to Buy or Lease: While prices continue to come down, EVs and Hybrids generally come with a higher MSRP (read: purchase price) than ICEs. In many cases—though not all—this higher upfront cost can be justified by lower fuel costs and average maintenance than old-school combustion models long-term. However, you shouldn’t bank on these assumptions—especially when considering the still high-costs of batteries and chips, as well as the fact that EV infrastructure is still emerging.
- Charging Availability: That last point bears repeating: While EVs are gaining popularity, the charging infrastructure pales significantly in comparison to the national networks of gas stations available for drivers. Although things are improving, it’s estimated that as of 2023, the United States averages about 104 gas pumps per 1,000 road miles, compared to just 22 EV charging ports.
- Government Incentives: While federal incentives remain in flux (as well as mandates to expand infrastructure), many states offer tax credits or financial incentives to individuals who purchase a hybrid or EV. Some examples as well as a breakdown on what regions are best equipped for hybrid or EV drivers are outlined in this graphic:
As this map bears out, geography is a key factor in this decision—as well as range if you’re a driving employee who might be taking routes with little infrastructure to charge their engine.
The “Brass Tax” may ultimately come down to understanding what routes and geographies you’ll need access to, and the prevalence of either charging or fuel stations to support your travel—trumping even the benefits of lower maintenance in calculating long-term viability.
Hidden Pitfalls and Calculating ROI
To start, if you’re a driving employee, you need to do some of the baseline routing calculations outlined above.
Less maintenance—but at a higher premium
For instance, because electric vehicles tend to literally have fewer moving parts than ICEs, they therefore have lower overall maintenance needs, generally requiring over-the-air software upgrades in the event of recalls rather than a trip to the mechanic.
The flipside in this scenario is that not all EVs leverage the same infrastructure (ie. Tesla vs. All the rest), or offer the same in-person repair options as ICE models from more widely established brands.
There’s also the reality that more technologically advanced models on average will cost more to repair in the event of accidents—see how vehicle crashes impacted businesses last year for a closer breakdown.
Resale value still TBD
Because EV and hybrid technology continues to advance at a rapid pace, cutting-edge models from a decade ago—see the Prius—are losing their shine on the resale market. With brands rapidly trying to one-up the competition in the “EV arms race,” prospective buyers are often encouraged to “wait and see” before swapping a reliable ICE model for a more fuel-efficient alternative.
This also speaks to larger supply chain implications that are unique to EVs today. Raw materials for lithium-ion battery production, for instance, is notoriously expensive, with the threat of tariffs, trade wars, and shortages having a downstream impact on vehicle costs across the board.
Taking action for professional and personal vehicle choice
Ultimately, when it comes time to buy or lease a car for both work and off-the-clock activities, it pays to partner closely with your vehicle program administrators. Not only can they help you ensure that you’re striking the right balance between sustainability and affordability, but they will also help ensure that your vehicle reimbursements for whatever car you ultimately buy or lease is as fair and accurate as possible for the long term.
Be sure to subscribe to our blog for more information on how to navigate the process of choosing a vehicle that delivers on all fronts—both professionally and personally—while satisfying your own personal sustainability mission.
To learn more about how businesses are working toward a more environmentally friendly driving workforce, check out the 2025 Motus Sustainability Report today.
FAQ: Electric vs Hybrid vs ICE
What are the main types of vehicle drivetrains available in 2025?
In 2025, drivers have three primary drivetrain options to choose from. Internal Combustion Engine (ICE) vehicles remain the traditional choice, using gasoline, diesel, or ethanol to power the car. Hybrid vehicles combine an internal combustion engine with an electric motor, with the Toyota Prius being the most recognizable example. Electric Vehicles (EVs) represent the newest mainstream option, using a battery-powered electric engine instead of a traditional fuel tank. Each drivetrain offers unique advantages and challenges, making the choice dependent on individual driving needs, environmental considerations, and total cost of ownership.
How do the environmental impacts of different drivetrains compare?
Contrary to popular belief, the environmental impact of vehicles is more complex than simply comparing tailpipe emissions. While ICE vehicles produce direct greenhouse gas (GHG) emissions, electric vehicles rely on electricity sources that may generate indirect emissions. The true environmental footprint depends on factors like electricity generation methods and overall energy efficiency. In some cases, a high-mileage ICE or hybrid vehicle might actually have a lower environmental impact than an electric vehicle, especially in regions with carbon-intensive electricity production. Drivers should consider the entire lifecycle emissions, including manufacturing, electricity generation, and vehicle operation when assessing environmental impact.
What are the key financial considerations when choosing between ICE, Hybrid, and Electric vehicles?
The total cost of ownership involves multiple factors beyond the initial purchase price. Electric and hybrid vehicles typically have a higher upfront cost compared to traditional ICE models, but may offer lower fuel and maintenance expenses over time. However, potential buyers should carefully consider several financial aspects: charging infrastructure availability, government incentives, battery replacement costs, and regional variations in fuel and electricity prices. While EVs generally require less maintenance due to fewer moving parts, they can be more expensive to repair after accidents. Additionally, the rapidly evolving technology means resale values can be unpredictable, with newer models quickly making older electric and hybrid vehicles less desirable.
What challenges do alternative fuel vehicles currently face in 2025?
Electric and hybrid vehicles still face several significant challenges. Charging infrastructure remains limited, with the United States averaging only 22 EV charging ports per 1,000 road miles compared to 104 gas pumps. Battery technology and raw material sourcing present ongoing challenges, including expensive lithium-ion production and potential supply chain disruptions. Not all electric vehicles use the same charging infrastructure, creating additional complications for drivers. Government incentives vary by region, and the technology is still evolving rapidly, which can make long-term ownership decisions more complicated. These factors make it crucial for drivers to carefully evaluate their specific driving needs and local infrastructure before committing to an alternative fuel vehicle.
How should driving employees approach vehicle selection in 2025?
Driving employees should take a comprehensive approach to vehicle selection in 2025. This involves closely partnering with vehicle program administrators to balance sustainability, affordability, and practical driving needs. Key considerations include analyzing typical driving routes, local charging or fueling infrastructure, personal and professional use requirements, and potential reimbursement implications. Programs like Fixed and Variable Rate (FAVR) reimbursement can help offset cost differences between drivetrain types. Employees should conduct thorough research on their specific driving patterns, local incentives, and long-term total cost of ownership. Most importantly, they should remain flexible and open to emerging technologies while carefully evaluating how a new vehicle will meet both their professional and personal transportation needs.
