Buying vs. Leasing Your EV Battery

Pros

Cons

No Monthly Payments:

Buying your EV complete with the battery means no outgoings after purchase.

Higher Initial Cost:

The value of the battery increases the upfront cost.

Resale Value:

EVs sold with the battery included tend to have a higher resale value. It makes the car more attractive to potential buyers, because there's no lease.

Depreciation and Technology Advancement:

An owned battery might become outdated due to rapidly advancing technology, which can also affect the vehicle's efficiency and performance.

Battery Technology and Warranty:

Modern EV batteries tend to come with warranties because they're designed to last. Often coming with cover for 8 years, or 100,000 miles, providing peace of mind regarding battery life and replacement costs.

Replacement Costs:

If a battery needs replacement outside of warranty, the cost can be substantial, sometimes running into the thousands.

Unlimited Mileage:

Without a lease, you don't have stick within mileage limits, which can be costly if you exceed them.

Weight and Efficiency Concerns:

As technology progresses, newer models may offer better range with lighter batteries, which might make older models less appealing.

Pros

Cons

Lower Initial Cost:

Leasing can significantly reduce the upfront purchase price of an EV, making them more accessible to buyers.

Ongoing Payments:

You'll have monthly payments for as long as you own the car, which could make an electric car more expensive in the long-term.

Battery Performance Guarantee:

Battery leases often come with a performance guarantee, ensuring that the battery maintains a certain level of efficiency and range throughout the lease term.

Battery Swap/Upgrade Fees:

Leasing allows access to newer battery technology, but swapping or upgrading to a newer battery during the lease could incur additional fees.

Flexibility with Advancing Technology:

Leasing allows drivers to benefit from the latest battery technology without the commitment of ownership.

Dependency on the Leasing Company:

Your EV’s performance and reliability are tied to the terms set by the leasing company.

No Long-Term Depreciation Concerns:

The risk of battery depreciation falls on the leasing company, not the vehicle owner.

Limited Customisation and Upgrade Options:

Battery lease agreements may restrict your ability to customise or upgrade the vehicle.

Lower Monthly Costs:

Monthly lease payments for a battery can be lower than the cost of maintaining a purchased battery.

Mileage Restrictions:

Some battery leases come with mileage restrictions, with fees applied if these limits are exceeded.