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Battery Lease for Selected Electric Cars - Everything You Want to Know
Discover everything you need to know about battery leasing for certain electric vehicles and get informed about costs, advantages and monthly payments.
Venturing into the world of used electric vehicles opens up new possibilities for car traders to add economical and environmentally-friendly choices to their offer.
However, as you’re bidding on and purchasing EVs, you may encounter listings that mention something called a "battery lease". What exactly does that mean?
Not to worry, we're here to clearly explain this concept so you can make the best decision when purchasing a pre-owned EV.
What is a battery lease?
With traditional ICE (internal combustion engine) cars you own every single component when you buy the car. But electric cars work a bit differently when it comes to the battery pack - the lithium-ion battery that powers the vehicle is sometimes leased rather than owned.
In simple terms - the battery is not a part of your purchase. You buy the car without the full upfront expense of the battery.
This is not the case for all electric vehicles you can purchase on eCarsTrade or other auction sites, of course. Some vehicles are sold with their battery included, and for some the battery will have to be leased.
Essentially, with a battery lease, you are paying a monthly fee to rent just the battery portion of the electric car from the manufacturer. You own the car itself, but not the battery pack inside it.
How does a battery lease work?
Don't worry, while it may sound complicated, a battery lease is actually pretty straightforward!
When purchasing an EV that requires a battery lease, you'll sign an agreement that legally separates the battery from the vehicle's ownership. You'll then pay a fixed monthly rate, usually between 50€-150€ per month, for an agreed-upon number of years.
This monthly payment allows you full use of that leased battery to power and charge your car during that entire term period. The rate takes into account estimated battery manufacturing costs, maintenance, and the need to eventually replace it with a fresh battery once it has degraded over time.
Most leases will also set mileage allowances per year. The more kilometers you expect to drive annually, the higher your monthly battery payment will be to account for accelerated battery degradation from increased usage.
At the end of the full lease term, you'll have the choice to either purchase that battery outright if you plan to keep the EV long-term or start an entirely new battery lease.
Electric vehicles on eCarsTrade with a possible battery lease
As you’re deciding whether to invest in an electric vehicle, let’s see which ones would require a possible battery lease.
Renault has been a major proponent of battery leasing for electric vehicles. However, Renault now offers the option to purchase the battery, and battery leasing has been discontinued for new ZOE models.
So far, we have noticed that battery lease is still most common with older Renault and Nissan models.
Let’s take a look at the two most popular ones: Renault ZOE and Nissan Leaf.
Renault Zoe
The Zoe was one of the earliest mainstream EVs to adopt battery leasing.
Renault offers various battery lease packages depending on the annual mileage. For example, the Z.E. Flex package starts at 69 euros (for 7,500 km per year), at 114 euros per month (for 17,500 km per year) and the Z.E. Relax package offers unlimited mileage for 124 euros per month.
Some of Renault’s battery lease packages are:
- Z.E. Flex package: 69 euros (for 7,500 km per year)
- Z.E. Flex package: 114 euros per month (for 17,500 km per year)
- Z.E. Relax package offers unlimited mileage for 124 euros per month
So as a car trader, you would simply pick the most affordable package and transfer the contract to the new owner once you sell the car.
Nissan Leaf
The first-generation Nissan Leaf also utilized leased batteries before eventually switching to an owned battery model.
For example, if you purchase a pre-2019 Nissan Leaf, you might be faced with a battery lease requirement with the starting price of about 80€.
Other models
Other Renault and Nissan models that might include battery lease are:
- Renault Kangoo
- Renault Twizzy
- Renault Fluence
- Renault Master
- Nisaan e-NV200
Advantages of leasing an EV battery
There are several key benefits to choosing a battery lease option when purchasing a used electric vehicle:
- Buying an EV for a lower price - Leasing the battery separately can significantly reduce the upfront costs of buying a pre-owned EV, since the expensive battery pack is essentially "rented" through the monthly payments rather than having that full cost within the purchase price.
- Battery replacement included - With a lease, your clients won’t have to worry about paying thousands to replace the battery pack once it wears down, as they'll be supplied with a fresh battery once the lease term is over.
- Potentially lower payments - Monthly battery lease rates can end up being very affordable, especially for a used EV where the battery has already been partially paid off by the previous owner's lease payments.
Disadvantages of leasing an EV battery
While beneficial in many ways, leasing an EV battery does come with some potential downsides to consider:
- Long-term commitment - Battery lease terms usually last 8-10 years, which means you’ll need to convince your clients to go into this long-term commitment. However, companies like Renault also introduced the possibility to pay the battery off in full, so you can use this in your sales pitch.
- Mileage restrictions - Going over the allotted annual mileage limits can result in excess mileage penalties.
How will you know if the vehicle you're purchasing on eCarsTrade has a leased battery?
When browsing our listings for used electric vehicles, any that require a battery lease will have that clearly stated in the vehicle's description and title.
Take these steps to ensure you are well-informed about possible battery leasing:
- Check the title of the car listing. If you see "Ohne Batterie" in the title, it means the battery is not included and you will need to lease it.
If you see “Mit Batterie”, it means the battery is included and you will not need to lease it.
- Check the car description. The possibility of a battery lease will also be mentioned in the description. Always read the car description thoroughly!
- Research: Before you consider purchasing, do thorough research on the specific model. Check any potential battery leasing costs and terms directly with the manufacturer.
- Contact us: As always, we are here to clear any doubts and help. You can always reach out to your Account manager to ask whether the EV comes with or without the battery.
Can you cancel the battery lease agreement? If so, how?
In order to be prepared for any questions from your clients, especially if you’re a B2C car trader, you will probably want to know if it’s possible to cancel a battery lease agreement.
Or maybe the EV with its battery lease agreement simply no longer fits your inventory. Whatever the reason, early termination of the battery lease is possible, though fees may apply.
Exactly how the cancellation process works, as well as the types and amounts of possible fees, will depend on the specific battery lease agreement you have from the manufacturer or leasing company.
In general, you can expect to:
- Contact the manufacturer or leasing company to formally request an early termination
- Receive a lease buyout amount to pay, which covers any remaining fees
- Pay any applicable excess mileage penalties
- Potentially pay additional early termination fees
The manufacturer or leasing company will provide you with all the accurate costs, charges, and instructions for turning in the vehicle and official terminating the battery lease agreement early.
Battery leasing considerations for used EVs - Contact our support for more information!
While battery leasing is becoming a common practice for electric vehicles, it's understandable if you still have lingering questions or concerns about this unconventional setup. The concept of not fully owning your EV's battery pack can take some getting used to.
Do your due diligence to familiarize yourself with battery lease agreements - the monthly payments, mileage restrictions, end-of-term options and more.
The most important thing is feeling fully informed about what battery leasing entails so you can make a confident decision that aligns with your dealership’s needs, audience, and if you could successfully profit on selling electric vehicles.
eCarsTrade offers online auto auctions of ex-lease vehicles from France, Belgium, The Netherlands and Germany, with a complete maintenance history. We guarantee high quality of our vehicles, and a fast, simple and transparent purchasing process with fixed commission costs. We work with both European and international used car dealers and traders. Your dedicated Account manager is your personal support for any questions or issues!
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