Why you should buy your EV but rent the battery
Many are excited to buy their first electric vehicle. But before you steer clear of combustion engines, there are a few things to consider. Maintaining an electric vehicle will require a new rulebook, very different from the routine oil changes you might be used to dealing with. Electric vehicles have batteries to maintain and replace, which could present more costs than you think.
Before buying your new electric vehicle, consider budgeting for battery maintenance. And with some of the latest services to emerge, battery leasing may be your most affordable option. Based on some of these stats and details, it might make more sense to buy your EV but lease the battery.
Battery life anxiety is a real thing
Maybe you’ve heard of battery life anxiety and dismissed it as a myth. But the stress and anticipation of “running out of juice” on the road is real. Other core concerns for many prolonging their decision to buy electric vehicles include anxiety over not finding a place to charge and battery degradation.
The network of charging stations continues to grow, which could help combat some of those worries about being able to charge while you’re on the go. But battery maintenance, power degradation, and costly replacement remain ongoing issues. What if you didn’t have to buy the battery for your electric vehicle? What if you could have a more affordable and convenient way to swap out batteries over the life of the vehicle?
What if you could just pay a monthly fee to lease your battery instead?
Based on information from Kelley Blue Book, EV and hybrid batteries will become less efficient over time due to base degradation. And no matter how hard you try to take care of a battery, nothing can prevent its efficiency from wearing down over time.
While EV battery replacement costs are slowly decreasing, they are still relatively high. Kelly Blue Book got a quote from a Toyota dealer to replace a battery on a 2017 Prius model for $2,700. Recurring data from Auto to find an average cost of $161kWh for out-of-warranty battery replacement. Depending on your EV, that could translate to over $20,000.
Instead of buying a battery, you can consider battery insurance plans. VinFast is a new contender in this space, offering a smart solution to the costly problem of EV battery replacement. For 2023 model purchases, VinFast customers would buy the EV but lease the battery. They can then pay a monthly fee to use that battery. And VinFast guarantees to replace any battery that drops below the 70% capacity threshold. And buyers will have the option of accepting this rental agreement or purchasing the battery directly.
Increased benefits of renting the EV battery and buying your EV
Studies show that electric vehicles typically lose 5-10% of their range in the first five years. They will degrade at even higher rates beyond these five-year benchmarks, which are typically beyond the scope of the warranty. Under federal law, automakers must provide warranty coverage for their EV and hybrid batteries. But for anyone who intends to keep their EV for a long time, battery leasing may be the best and most affordable way.
Indoor EVs lists all of the factors that contribute to the rate of degradation of an EV battery, including boost charging frequency, ambient temperatures, and mileage driven. It’s a reminder to EV buyers to pay attention to their driving habits when considering battery purchase or lease.
If you decide to explore battery rental options, there are other providers to consider. Global News Wire suggests the battery rental industry will reach $400 million by 2028 and shares information from other rental providers including Bounce Infinity, E-ChargeUp Solutions, NIO NextEV Limited, Octillion Power Systems and VoltUp.
Before you go test drive and buy your new electric vehicle, do some research on battery leasing. For anyone keeping their car beyond warranty coverage times, battery leasing is probably the smartest and most economical decision.
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