EV battery leases could be a boon for manufacturers, a bust for consumers

Image Credits: Michael M. Santiago (opens in a new window) / Getty Images

Observers have thought for a long time that consumers would be better off leasing EV batteries than buying them, because the batteries are prone to degradation, because someday you might be able to upgrade your car's battery with a better one and so on.

Unless the consumer is pressed for cash at the time of purchase, leasing is not a good idea. It's not likely to be any different with battery lease.

VinFast is testing the waters with plans to sell EV while lease their batteries, and the terms of the deal seem so skewed that I suspect VinFast's business model is more about maintaining control of the batteries from start to finish. VinFast may say they are trying to lower the barriers of EV ownership, but their real play appears to be in harvesting the residual value of the battery.