What Is an Electric Vehicle Battery Lease?

Whilst browsing used electric vehicles you may have come across the term 'battery lease' - but what on earth does it mean?

Put simply - when you buy a car that has a battery lease, you own all the parts of the car except the battery itself. Instead of owning the battery, you pay small monthly payments directly to the car manufacturer to rent the battery from them. In return, you are offered a range of benefits.

What Are the Benefits of Leasing the Battery?

When leasing the battery you are paying for a lifetime warranty on the battery. The repayments continue for as long as you own the car (unless you buy the battery out, more on that later) therefore the warranty lasts the same period of time. If you ever have any issues with your battery then it is not your problem - the manufacturer will repair or replace the battery at their cost.

Sometimes the manufacturer will include additional benefits with your lease payments. As an example with Renault vehicles, Renault also includes a breakdown cover so you never have to worry about being left at the side of the road. They will even come and collect you if you run out of battery.

The last benefit which I will include here is around price - because you are not owning the battery - which is often the most expensive part of the car - the purchase cost of the vehicle is reduced. This is why the Renault Zoe is so popular!

A battery lease can really ease your mind about owning an electric vehicle when you consider the above benefits.

How Much Are the Monthly Payments?

Lease costs vary, but let's take a look at the Renault Zoe - the most popular battery lease car on the market today.

The payments range from £49 to £110 per month. This is dependent on the size of your battery and the annual mileage you expect to travel. We find it is normally cheapest to slightly underestimate the mileage you expect to cover and look to pay the excess mileage charge if you exceed it. We have found Renault very flexible to deal with, despite them discontinuing the battery lease programme in more recent times.

Can I Buy My Battery?

Yes! If you don't want the extra monthly payments then owning your battery outright, along with the rest of the car, is usually possible. Car battery buyout payments are paid directly to the manufacturer and can increase the value of the vehicle overall. The cost to do this ranges anywhere from around £2,000 to £4,000 +, depending on the age and specification of the car.

Conclusion

There are certainly benefits to both owning and leasing the battery in your car. We tend to prefer the lease option in vehicles that are a few years old or more due to the peace of mind provided by the lifetime warranty on the battery. Make sure you consider all options and if you have any questions on this topic, or any other, we would be happy to help.

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