Battery leasing offers better value

Electric vehicles powered by leased batteries are likely to offer better whole life costs when compared with alternative commercial approaches, according to a new study by vehicle valuations expert Glass's.

The comparative study showed that battery leasing resulted in significantly lower depreciation costs compared with an electric vehicle with built-in batteries.

Glass's calculated that the Nissan Leaf - which comes with a battery included in the cost - retains over a third (35%) of its value after three years and 36,000 miles.

This can be compared with an electric vehicle of a similar size to the Nissan Leaf but with a leased battery, which retains more than half (54%) of its original value over the same period. A range-extender electric vehicle will retain 43% of its value.

Andy Carroll, managing director atGlass's UK, said: "The use of whole life costs is the only way to assess the new powertrain technologies and differing business models. Our analysis shows that the new wave of vehicles is economically viable even before taking allowance of company car tax and local incentives.

"In particular the battery leasing option that we assessed is attractive for the car buyer as it not only means the initial purchase price of the electric car is closer to a conventional vehicle, but also removes the uncertainty of battery durability and replacement cost."

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