Electric vehicle (EV) batteries can be expensive. Depending on the type of EV you own, the battery could set you back $3,500 to $20,000. Based on a federal requirement, the manufacturer’s warranty for an EV battery covers battery replacement for eight years or 100,000 miles. But if you exceed that time frame or mileage, you’ll likely have to pay out of pocket to get the battery replaced.
Here’s what you need to know about electric car battery cost, how long your battery is likely to last, plus financing options to help cover the expense, should you have to replace your battery.
Average Electric Car Battery Cost
Just how much is an electric car battery? Electric car battery replacement cost largely depends on the make and model of the car. As a general rule of thumb, the more expensive your car is, the more the battery will be to replace.
EV battery replacement cost is one of the major costs of owning an electric car.
Cost By EV
These are the approximate prices EV owners may expect to pay for the following types of vehicles, depending on the kilowatt hours of the battery pack and model and year of the EV:
- BMW i3: $16,000
- Chevy Bolt: $16,000
- Chevy Volt: $4,000
- Hyundai Ioniq: $2,800
- Nissan Leaf: $3,500 to $9,500
- Tesla Model 3: Up to $12,000
- Tesla Model S: $12,000 to $22,000
- VW e-Golf: Over $23,000
If you don’t have the money to pay for an electric car battery cost upfront, there are top personal loans that could help with this expense.
How Long Your EV Battery Will Last
How often do EV batteries need to be replaced? These batteries are generally designed to last the lifetime of an electric vehicle. However, because they need regular recharging, EV batteries usually experience natural degradation, and there’s no set rule for how long a battery will last. For example, Nissan Leaf owners have reported batteries that lasted eight to 10 years, while Prius hybrid owners said their batteries lasted eight to 15 years.
Batteries may degrade for a number of reasons, including natural aging, being exposed to high or low temperatures (which causes thermal expansion and contraction in the battery), and being operated at a high or low state of charge.
Where you live also factors into the longevity of your battery. Plan for about 12 to 15 years if you live in a moderate climate, and eight to 12 years of life for your battery if you live in a harsher climate.
Signs Your EV Battery Is Going Bad
There are some red flags that can signal your battery may need to be replaced. Watch out for:
- Charge signals that keep changing: If your battery shows that it’s fully charged, but then minutes later looks like it’s been drained, it may be failing.
- Low battery level after the car is parked for a while: If the battery is consistently dead in the morning after being parked overnight, you may have a bad battery.
- The fan is always running: This could signal that the battery is overheating, which could cause it to die sooner than later.
Can You Repair It Yourself?
In a word, no. EV battery repair is a relatively new concept, and there are only a few places nationwide that know how to do it. As an EV owner, you should never attempt to repair an EV battery on your own. It should only be done by a professional who is qualified in EV battery repair.
Do Extended Warranties Cover EV Batteries?
Extended car warranties generally don’t cover EV batteries. EV batteries are covered by a separate warranty. As mentioned earlier, the federal government requires manufacturers to give buyers an eight-year or 100,000-mile warranty on EV batteries. The state of California requires a longer warranty of 10 years or 150,000 miles.
And some EV warranties cover battery replacement cost if the battery falls to 60% to 70% capacity. If you own a Tesla, for instance, the company will generally replace your battery if it’s below 70%. Nissan Leaf owners can get their battery replaced under warranty when it falls below 75%.
Added Costs to Be Aware Of
Added costs, such as the labor for installation may factor into the EV battery replacement cost. For example, in a 2014 Tesla Model S, the labor might be $1,500, according to some reports. In a 2014 Nissan Leaf, the labor could be about $388.
Alternative Funding Options for Replacing an EV Battery
If you don’t have the money to pay for EV battery replacement and the warranty has expired, there are ways to finance the expense. These are some financing methods for an electric car battery cost that you may want to consider.
Credit card
You could cover the cost of your EV battery replacement with a credit card, which can be quick and easy to use. However, credit cards typically have high interest rates, so unless you pay off the balance quickly, you may end up owing quite a bit in interest. If you can qualify for a credit card with an introductory 0% APR, you wouldn’t owe any interest until the introductory period ends. But if you can’t pay off the balance by that time, the interest will kick in and you’ll need to pay it.
Personal line of credit
A personal line of credit (PLOC) is a revolving line of credit that gives you a certain amount of funds for a certain amount of time. You’ll need to be approved by a lender, and a PLOC comes with interest you pay on the funds you take out. However, the interest is typically a variable rate, which means it can go up. Make sure you’re comfortable with that possibility.
Personal loans
If you’re wondering, are there personal loans for car repairs, there are. Personal loans can be used for a variety of purposes, including car repairs. With a personal loan, a bank, online lender, or credit union lends you a lump sum that you repay with interest in installments over time.
The higher your credit score, the lower the interest rate you may get on a personal loan. Once you’ve met the personal loan requirements and you’re approved, you may expect to receive funds quickly, typically within one to five days.
Depending how much your EV battery replacement costs, you could consider looking into small personal loans for a few thousand dollars. Or, you may need a larger loan. Personal loans are available in different amounts, so you can explore the various options.
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The considerable hidden costs of owning an electric car
At first, electric vehicles were marketed as luxury cars with price tags that put them out of reach for most people. However, as interest in eco-friendly cars rises, more automakers are releasing electric vehicles aimed at the masses. By the end of 2022, there may be over 100 different electric vehicle models for sale in the United States.
These cars promise to be environmentally friendly and save you money at the gas pump. However, the price of gas isn’t the only cost to consider. Read on to learn the factors that can affect the cost of an electric car, as well as look at whether electric cars are more cost effective.
Related: Does loan purpose matter?
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As of November 2021, the average price of an electric car hovered around $56,000, up nearly 6.2% from the year before, according to data from Kelley Blue Book. The price of an electric car is about $10,000 more than the industry average of $46,329.
That said, the price of an electric vehicle will depend on the make and model that you choose. For example, a 2022 Nissan Leaf has a starting price of about $28,000. Meanwhile, a Tesla Model S could cost more than $100,000.
In addition to the price you’ll pay to drive an electric car off the lot, there will be other costs you’ll have to account for over the life of the vehicle, from charging to maintenance to insurance.
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When you charge your electric vehicle, you’ll pay per kilowatt-hour. The national average is around $0.12 per kilowatt-hour, according to data from electricity marketplace Electric Choice, though price tends to vary by state. And as a rule of thumb, the faster you charge your vehicle, the more expensive charging will be.
That said, the price of a kilowatt-hour is much more stable than the price of gas. The nationwide average cost today is only a couple cents more than it was a decade ago.
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Charging your electric vehicle at home is the most cost-effective method of charging. In fact, one Consumer Reports study found that individuals could save $800 to $1,000 on fuel costs if they charged their electric vehicles at home. Plus, at-home rates will vary in price much less than public charging stations, as each network has its own rates.
You will have to install some sort of charging station in order to charge your EV at home though. Depending on how your house is wired and what type of station you want or need, installation costs can vary widely, ranging up to about $2,500. Equipment costs tend to be anywhere from $200 to $1,000, while the cost of installation can range from $800 to $1,300 or more, according to data from Edmunds, an online automotive resource. Higher prices tend to correspond with the need to do a lot of electrical work to prepare the charging site.
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Electric vehicles have fewer moving parts than their gas-powered counterparts. Consider one of Tesla’s claims to fame: Their cars have only 17 moving parts, compared with the 200 or so in a traditional vehicle. As a result, there are fewer parts subject to wear and tear and therefore in need of regular maintenance.
Research shows that individuals who buy an electric vehicle can expect to save about $4,600 in maintenance and repair costs over the life of the car, per data from Consumer Reports. If you take a look at a mile-for-mile breakdown of maintenance costs, electric vehicles typically cost about $0.03 per mile to maintain, compared to $0.06 per mile to maintain a car with an internal combustion engine.
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You’ll also need to take into account the cost to insure an electric vehicle. In general, owners of electric vehicles can face higher insurance premiums compared to those of gas-only vehicles.
This is due in part to the fact that vehicles that are more expensive tend to cost more to insure. Additionally, repairs for electric vehicles may be more costly due to the price of their parts as well as the more limited options in technicians who know how to repair electric vehicles.
Of course, as electric vehicles grow more popular, their sticker price and the cost of repairs will likely go down, which will likely also push down insurance rates for EVs.
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If you’re choosing between an electric vehicle and a traditional gas-powered option, it’s important to weigh out the pros and cons.
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While the average up-front cost of purchasing a new electric vehicle may be more than the average gas-powered car, they are cheaper to operate and maintain, and you could ultimately save thousands of dollars over the life of the car.
What’s more, government incentive programs may reduce your out-of-pocket costs by a significant amount, making an electric car a more feasible option for those with smaller budgets. Still, there is some give and take with the costs of owning an electric vehicle to keep in mind. For one, insurance premiums tend to be higher. And while there is less maintenance needed overall, some repairs like battery replacement can be costly.
You’ll also want to keep in mind the cost of charging, including if you want to install an at-home charger, the most cost-effective option. All told, however, the average cost per year of charging an electric car is about half that of gas vehicles, according to the U.S. Department of Energy.
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When it comes to purchasing an electric vehicle, your options are the same as buying a traditional car. Here’s a look at the ways you can pay for an electric car.
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If you have enough savings on hand, you can buy a vehicle in cash. Doing so may give you some leverage as you negotiate a purchase price. It will also mean you don’t have to pay any extra costs in the form of loan fees and interest.
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You may also choose to finance your car, taking out a loan through a bank or other financial institution. Or you may consider dealership financing. When you take out an auto loan, you usually make a down payment and then pay off the rest of the cost of the vehicle, also known as your car loan principal, over a series of monthly payments. In return for allowing you to borrow the funds, your lender will charge interest, adding to the cost of your loan.
The amount of interest they charge will depend on a number of factors, including your credit score, income, and whether you’re using a co-borrower.
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Another option you have when it comes to getting an electric car is leasing. There are a number of benefits to leasing an electric car as opposed to buying it outright, including being able to avoid the steep depreciation that comes with electric vehicles, steering clear of dealing with eventual battery degradation, and getting access to newer, evolving technology when you trade in your car at regular intervals.
However, you’ll lose out on potential federal and state tax credits when you lease instead of buy — though sometimes the leasing company may pass on their savings to the consumer. Plus, with leasing, you won’t actually own the vehicle.
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In the future, you may consider refinancing your auto loan. When you refinance, you take out a new loan with better terms or interest rates and pay off your old loan.
You may be wondering, when should you consider refinancing a car? If your financial situation improves, interest rates drop, or your electric car payments become unmanageable, looking into refinancing may be worthwhile. It’s important to consider the benefits and disadvantages of refinancing, though.
On the plus side, you may be able to settle on more manageable monthly payments, save money on interest, and free up cash to put toward other financial goals. On the other hand, you may also find yourself dealing with prepayment penalties and fees to originate a new loan.
Here’s a rundown of what to ask when refinancing your car to help you make a decision for your financial situation.
While you’ll skip costs at the gas station with an electric vehicle, there are still costs of an electric car to keep in mind if you’re considering getting one. Added costs can include charging — both at public stations and at home — as well as maintenance and insurance. Still, overall, the average cost of an electric car does tend to be cheaper in terms of operation and maintenance than its gas-powered counterparts, even if their sticker price is currently higher.
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This article originally appeared on LanternCredit.com and was syndicated by MediaFeed.org.
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