Understanding EV Battery Degradation and Its Impact on Leasing

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, delivers promising results:

  • EV batteries degrade at an average rate of just 1.8% per year.
  • This means most EV batteries will last longer than the vehicle itself.

This is fantastic news for lessees, as battery degradation won’t significantly affect daily performance.


Why Are EVs So Reliable?

Advancements in battery chemistry and thermal management systems have significantly improved the reliability and longevity of EVs. These improvements make EVs a cost-effective alternative to traditional internal combustion engine vehicles.

For fleet operators, in particular, EVs thrive under high-use conditions without experiencing accelerated degradation, maximizing their value in the long term.


Why This Matters for Leasing Customers

  1. Longer Vehicle Lifespan
    EV batteries now last up to 20 years, making them a highly dependable choice for leasing.

  2. Cost-Effective
    The minimal degradation rate ensures consistent performance throughout the lease term, reducing maintenance concerns.

  3. Sustainability
    Leasing EVs helps lower emissions, particularly in high-mileage use cases.


Telematics Data: Debunking Myths About EVs

Telematics data from studies like Geotab’s provides valuable insights for customers. It helps to debunk myths about EV battery reliability, giving leasing customers the confidence to make the switch to electric vehicles.

Minimal battery degradation enhances the long-term value of EV leasing, making it a smart and sustainable option for both individuals and businesses.

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