Understanding EV Battery Degradation and Its Impact on Leasing
When considering leasing an electric vehicle (EV), concerns about battery longevity often arise. However, a recent study by Geotab, based on telematics data from nearly 5,000 EVs, shows promising results: EV batteries degrade at an average of just 1.8% per year. This means most EV batteries will last longer than the vehicle itself. This is great news for lessees, as battery degradation won’t significantly impact daily performance.
With improved battery chemistry and thermal management, EVs are a reliable, cost-effective alternative to traditional internal combustion engine vehicles. Fleet operators, in particular, can maximize value by opting for EVs that thrive in high-use conditions without faster degradation rates.
Why This Matters for Leasing Customers
Longer Vehicle Lifespan: EV batteries are now lasting up to 20 years, making them highly dependable for leasing.
Cost-Effective: The minimal degradation rate ensures consistent performance over time, reducing maintenance concerns.
Sustainability: Leasing EVs contributes to lower emissions, especially in high-mileage scenarios.
Telematics data provides crucial insights for customers to confidently switch to electric leasing, debunking myths about battery reliability and enhancing long-term value.
