From January 2026, electric vehicles lost their Congestion Charge exemption and now pay £13.50 per day. That one change narrowed the gap between electric and plug-in hybrid hire more than any other update in recent years. If you add winter charging costs and post-holiday cash flow pressure, the number goes even higher.
In this situation, should you rent an electric or plug-in hybrid (PHEV) in 2026? The answer depends on three numbers: your weekly rental cost, your running costs and your take-home pay.
What You Pay Weekly: Electric Rental Costs Explained
Electric PCO hire usually costs £200 to £350 per week, based on model and contract length. Most packages include insurance, maintenance, breakdown cover, MOT and road tax. Drivers pay separately for:
- Charging costs
- Congestion Charge
- Parking
You can expect a deposit of £300 to £450, plus one week’s payment in advance. Alternatively, plug-in hybrid hires cost £10 to £30 less per week, but this removes the ULEZ saving.
Daily Running Costs
Charging costs vary significantly depending on where you charge:
- Home charging: 6p to 33p per kWh, the cheapest option available
- Public rapid charging: 55p to 75p per kWh, which erodes margins quickly
- On-zone charges:
1. Congestion Charge: EVs pay £13.50 per day vs £18 per day for petrol and diesel vehicles
2. ULEZ: EVs remain exempt from the £12.50 daily charge
Electric saves money for short-trip urban drivers with home charging. But high-mileage airport drivers cannot save if they rely on rapid charging.
How Much London PCO Drivers Earn in 2026
Full-time drivers normally gross £500 to £800 per week before costs, at hourly rates of £15 to £25. After expenses:
- Net earnings: £11 to £17 per hour
- VAT changes from January 2026 reduce take-home pay for some London drivers
- Peak windows: weekend nights, rush hours and airport runs pay best
The hours worked, shift timing and zone coverage determine your weekly number more than vehicle choice alone.
Electric vs PHEV: Which Powertrain Saves You Money
Break-even depends on mileage and road mix:
- High-mileage airport drivers (1,000+ miles per week, frequent Central London): plug-in hybrid gives more mileage
- Mixed-mileage drivers (600 miles per week, occasional Central London) depend on charging access
- Part-time low-mileage drivers (200 to 300 miles per week), best with electric cars with home charging
The Charging Problem
London has 214 or more free charging stations, but these represent roughly 1% of total charge points across the UK.
On top of that, working drivers deal with rapid charging costs, 30 to 60 minutes of stop for each charging, and deliberate route planning around the charging locations. It shows that without reliable home charging, electric vehicles become unprofitable.
Rental Contract Terms
Before signing, check terms like:
- Minimum term: generally, four weeks with seven days' notice to exit
- Mileage allowance: 800 to 1,000 miles per week included, with 20p per mile overage
- Insurance: included but check your excess amount carefully
- Insurance: included but check your excess amount carefully
- Exit flexibility: short-term rental is easier to exit than rent-to-buy arrangements
When Electric Rental Makes Sense Financially
| Electric hire is more profitable when | Electric hire is less profitable when |
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Your Three-Step Decision Process
Before choosing a vehicle, check your weekly mileage, the working days/hours, your peak hours and if you have home charging access.
Then take these steps:
- Try a short-term electric rental first to test your real costs
- Map charging options along your regular routes
- Compare the Hertz PCO rental offers and choose the option that best fits your actual route pattern
- Calculate your actual weekly costs before committing to a longer contract
If you are still deciding, Hertz’s weekly PCO rental offers give you a practical way to test the right vehicle before making a bigger commitment. And if the car works well for your routes and earnings, then opt for Rent2Buy and move from rental toward ownership with no heavy down payment.
FAQs
1. Is an electric PCO hire cheaper than a PHEV in 2026?
With EVs now paying the Congestion Charge at £13.50 per day, the gap has narrowed. Home charging access is now the deciding factor.
2. Do EVs still save on the Congestion Charge?
Yes. Congestion charges on registered EVs are £13.50 per day versus £18 per day for petrol and diesel vehicles. The saving is smaller than before but still lower for drivers working in Central London regularly.
3. What if I cannot charge at home?
Public rapid charging at 55p to 75p per kWh remarkably reduces your margin. In this case, PHEV hire often delivers better weekly take-home.
4. Can I switch from electric to PHEV?
Yes. Short-term rental contracts allow switches with seven days' notice. Check your specific contract terms before signing.