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Battery leasing best for electric RVs, says Glass's

Date: 11 May 2011

Residual value specialist Glass's claims battery leasing is likely to provide better whole life costs for electric vehicles than alternative commercial approaches.

This month Glass's released the first value comparison between an EV with battery included, an EV with a leased battery and a range-extender EV.

Its research showed that the Nissan Leaf, which includes the battery in the purchase cost, would retain 35% of its value after three years/36,000 miles but that a similar EV with a leased battery should retain 54% of its original value over the same period.

A range-extender EV, which drives on electric power but gets additional electric power from a petrol engine, is likely to retain 43% of its value.

Glass's says an equivalent diesel vehicle would retain 44% of its value over three years/36,000 miles.

Glass's boss Andy Carroll 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. The battery leasing option is attractive for the car buyer as it not only means the initial purchase price is closer to a conventional vehicle, but also removes the uncertainty of battery durability and replacement cost."

Glass's found that the cost per mile over three years worked out at 49p for the Nissan Leaf, 52p for the range-extender and just 33p for the EV with a leased battery.

The diesel model cost 39p per mile.

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