Electric vehicles have existed for over 150 years, but they were not utilized to their full potential nor received much attention until the early 1900s. During the dawn of the automobile era, electric vehicles owned approximately 30% of the nascent market. At that time, some major cities promoted EVs as a means to reduce the urban environmental impact of horse-drawn transportation. Electric vehicles were preferred over chemically fueled vehicles for their dependability, silence, simplicity of operation, and ease of refueling. However, there was little to suggest that the electric vehicle would virtually disappear only 20 years later. Now, there are several variants of cars, including fully electric, and hybrid vehicles which are both electric and gas-powered, and fully gas-powered vehicles. The idea of alternative fuel that does not cause pollution is great, but what are the benefits of having a hybrid car, considering it still uses gas? This paper explores the types, benefits, challenges, and future prospects of alternative fuel and hybrid vehicles.