Battery Degradation in Electric Car Leasing

What is battery degradation in electric cars?

Battery degradation refers to the gradual reduction in the capacity of an electric car’s battery over time. As the battery undergoes repeated charge and discharge cycles, its ability to hold a full charge diminishes. This leads to a reduction in the car’s driving range. While all batteries degrade over time, electric car manufacturers design their batteries to last for many years, and degradation tends to occur slowly. Most electric cars experience a minimal loss of range over the first few years, making battery degradation a manageable issue for most drivers.

How does it impact the value and performance of a leased electric car?

Battery degradation can impact both the performance and value of a leased electric car. A reduction in battery capacity means the car’s range will decrease, which could affect its practicality, particularly for long-distance driving. However, modern electric vehicles are designed to minimise degradation, and most leased cars will still offer excellent range during the lease term.  Most leases are structured to account for normal battery wear over time.

Can battery degradation affect your lease costs?

Battery degradation typically does not directly affect lease costs, as most leasing agreements cover the expected wear and tear of the vehicle, including the natural ageing of the battery. Electric car manufacturers often provide warranties that cover the battery for a set number of years or miles, which helps protect drivers from the financial impact of unexpected battery degradation during the lease term.

How to mitigate battery degradation in electric cars?

To reduce the effects of battery degradation and prolong the life of your electric car’s battery:

• Avoid Frequent Rapid Charging: While rapid chargers are convenient, excessive use can accelerate battery degradation. Try to use slower, regular charging methods for day-to-day charging needs.
• Charge to Around 80%: Charging the battery to 100% regularly can strain the battery over time. Instead, aim to keep your battery between 20% and 80% for everyday use and only charge to full capacity when necessary for long trips.
• Minimise Exposure to Extreme Temperatures: Both hot and cold weather can affect battery health. If possible, park your car in a garage or shaded area during extreme weather conditions.
• Regenerative Braking: Use regenerative braking, which recovers energy and reduces strain on the battery, helping to extend its life.
• Keep Software Updated: Manufacturers often release software updates that optimise battery performance and longevity, so ensure your car’s software is up to date.

By following these practices, you can help slow down battery degradation, ensuring your electric car maintains good performance throughout the lease term.