Battery Replacement Program Details

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As the owner of a 9-bar car in Phoenix, I want to give my perspective on this battery lease program and the battery capacity warranty program. There were three main reasons why I purchased instead of leasing my Leaf:
1. Lease rates were high even with substantial down payments in June 2011.
2. I remembered images of people who leased EV1's trying to save them from being repossessed and crushed while those who purchased the original RAV4 EV's kept driving electric.
3. I intended to keep the car long enough to justify purchase instead of lease and I had a plan to use the old battery for backup power once the capacity dropped enough to need replacement. I anticipated that I would get 4 years on the original battery since I expected Phoenix to be harder on batteries than cooler climates even though Nissan indicated 80% remaining capacity after 5 years and 70% after 10 years with no temperature disclaimers.

When we began seeing early capacity loss last summer, I became concerned about the cost to keep my car on the road with adequate range for my daily needs. I became even more concerned when I found out there was no way to purchase either replacement modules or an entire replacement battery (at any price) and wondered what would happen if a battery were damaged due to road hazard or accident. The initial reaction to capacity loss by Nissan (normal, no problem) and their apparent surprise that owners would actually want to buy a battery added to my concerns about long-term use of my Leaf. I just kept driving and hoped that things would work out. Although there was some media attention in Phoenix, I believe that Tony's range test in September was the catalyst that forced Nissan to address premature capacity loss. Special thank you to Tony for organizing the test and to everyone else who participated--without this effort and the subsequent discussions on the My Nissan Leaf Forum keeping the capacity loss issue in the limelight, there would be no battery capacity warranty or replacement program.

The 9-bar capacity warranty and this battery replacement program (lease or rent, whatever it is called) are not perfect, but they do give me some assurance from Nissan that I will be able to keep driving my Leaf for a while. Since I am averaging about 1,000 miles per month, I will likely receive at least one battery replacement/refurbishment during the 5-year, 60,000-mile warranty. I don't want to give my battery away so I probably will not use this lease/rent program, but it is good to have as a worst-case alternative. At $100 per month for the battery lease combined with my off-peak power costs for charging, my total monthly "fuel" cost to drive the Leaf would be about the same as current gasoline costs for a similar-sized car.

When I reach the point a few years from now that I need to buy a new battery, I hope Nissan is willing to sell either a complete battery pack or 96 modules. If Nissan will not sell modules, I will be looking for aftermarket alternatives and will only use this lease program if there are no other options available.

Gerry
(owner of silver 679 in the range test)
 
On the above note, DaveinOlyWA did post http://daveinolywa.blogspot.com/2013/06/nissan-battery-replacement-program.html" onclick="window.open(this.href);return false; which I finally finished reading. I don't recall if he posted it here already.

I see his point about the $100/month for those w/high replacement needs (like Phoenicians) is actually a better deal than a flat replacement pack price. Problem is, it means one has to be willing to live with a 9 capacity bar left pack for awhile, possibly indefinitely, after the initial replacements.
 
How long could Nissan avoid the battery price question? Sooner or later, it must come out, right? Maybe the first person who leases one, the parts guy at the dealer might get a peak at the invoice. Is that our best chance? I'm holding out on the 2013 until I hear a price.
 
GerryAZ said:
As the owner of a 9-bar car in Phoenix, I want to give my perspective on this battery lease program and the battery capacity warranty program. There were three main reasons why I purchased instead of leasing my Leaf:
1. Lease rates were high even with substantial down payments in June 2011.
2. I remembered images of people who leased EV1's trying to save them from being repossessed and crushed while those who purchased the original RAV4 EV's kept driving electric.
3. I intended to keep the car long enough to justify purchase instead of lease and I had a plan to use the old battery for backup power once the capacity dropped enough to need replacement. I anticipated that I would get 4 years on the original battery since I expected Phoenix to be harder on batteries than cooler climates even though Nissan indicated 80% remaining capacity after 5 years and 70% after 10 years with no temperature disclaimers.

When we began seeing early capacity loss last summer, I became concerned about the cost to keep my car on the road with adequate range for my daily needs. I became even more concerned when I found out there was no way to purchase either replacement modules or an entire replacement battery (at any price) and wondered what would happen if a battery were damaged due to road hazard or accident. The initial reaction to capacity loss by Nissan (normal, no problem) and their apparent surprise that owners would actually want to buy a battery added to my concerns about long-term use of my Leaf. I just kept driving and hoped that things would work out. Although there was some media attention in Phoenix, I believe that Tony's range test in September was the catalyst that forced Nissan to address premature capacity loss. Special thank you to Tony for organizing the test and to everyone else who participated--without this effort and the subsequent discussions on the My Nissan Leaf Forum keeping the capacity loss issue in the limelight, there would be no battery capacity warranty or replacement program.

The 9-bar capacity warranty and this battery replacement program (lease or rent, whatever it is called) are not perfect, but they do give me some assurance from Nissan that I will be able to keep driving my Leaf for a while. Since I am averaging about 1,000 miles per month, I will likely receive at least one battery replacement/refurbishment during the 5-year, 60,000-mile warranty. I don't want to give my battery away so I probably will not use this lease/rent program, but it is good to have as a worst-case alternative. At $100 per month for the battery lease combined with my off-peak power costs for charging, my total monthly "fuel" cost to drive the Leaf would be about the same as current gasoline costs for a similar-sized car.

When I reach the point a few years from now that I need to buy a new battery, I hope Nissan is willing to sell either a complete battery pack or 96 modules. If Nissan will not sell modules, I will be looking for aftermarket alternatives and will only use this lease program if there are no other options available.

Gerry
(owner of silver 679 in the range test)

Excellent well thought out post Gerry. I have many of the same concerns as you do.

I really hope that Brian Brockman is still reading this thread and responds to your concerns.
 
I'm starting to think we are all just pawns in a system created as an unintended consequence of government regulations like CARB. Nissan doesn't care that they are losing money on the LEAF itself (sure they'd like it better if they weren't) and they don't care about the cars lasting. I'd like to see a financial breakdown on the various credits and how many are being sold to other manufacturers for how much. I heard a recent calculation the tesla gets $45k for every model s they crank out. Everyone here is an ev enthusiast so we think that's fine but seriously that is a huge redistribution going on. We might find that Nissan would cheerfully crank out 2000 LEAFs a month even if they had to give them away.
 
Maybe "pie in the sky", but what if Nissan modified the battery rental program such that you could terminate the program at any time, but at the time of termination you would need to pay:

(((bcpt) - (bcos)) / (bcps)) * (price of a new battery pack)

where bcpt = battery capacity of the rental battery at the time of termination
and bcps = battery capacity of the rental battery at the time you started the program
and bcos = battery capacity of your old battery at the time you started the program
and (price of new battery pack) = the price of a new battery pack at the time of termination.

Thus at the time of termination, you would be paying for any additional battery capacity that you had at that point compared to what your old battery had at the time you started the program. Would that make everyone happier with the program?
 
I don't understand this, frankly. Is it really true that the Nissan scheme is a perpetual "lease" on the battery and not simply an extended warranty program?

I have never heard of such a thing in my life -- other, than, perhaps battery pack swap programs like the former Israeli Better Place EV company.

How in the world can you have a perpetual lease on a fixed battery pack? If one stops paying the lease, could the entire vehicle be seized by Nissan? Seized and gutted of its 'leased' battery pack and returned as a shell?

This is a disaster. I could understand doing this as an extended warranty program like one has on used vehicles, or, even on cell phones. Essentially an insurance policy where if you make a claim fine, but you can always stop paying without penalty.

Nissan stealing one's original old, depleted battery (which is still worth thousands of dollars in itself) to replace with a 'leased' replacement pack, and thereafter requiring $1,200 in lease payments per year - forever - is just not the right way to go. Nissan must amend this plan.
 
Is there anything that says you have to give Nissan your old battery? The information I'm seeing says anyone who has a LEAF can opt into the program at any time, but if you stop paying they will take the battery. What about when someone opts out, does that car become permanently useless or will Nissan allow a new owner of the car, or maybe the same owner at some later point, to buy into the program and receive a new battery without having one to exchange? Will that cost more?

I'm not 100% sour on the idea of this program because I think it does provide an option for high mileage owners/those in hot climates, and it does provide some answers to those wondering what they can do after 60,000 miles if they keep the car-- sort of a worst case scenario, I guess. I don't think this announcement does anything for resale values, though, which is disappointing. However, after much thought, I don't think this is going to make any difference for the vast majority of us because by the price of replacing the battery will likely change by the time we exceed our warranty and desire a new battery.
 
BBrockman said:
TaylorSF: I think I understand your question. You're saying, once you sign up for replacement, you're looking for assurance not above 9 bars, but at a higher capacity level.

We are still finalizing details of the program, and we can take that kind of request into consideration. As it stands today, the program only provides replacement of the pack the second time at a point when the capacity drops below 9 bars.

At the end of ownership, the pack does still belong to Nissan. We expect that the program will be transferred to the new owner, who would need to agree as part of any sale to the existing payment terms for continued use and possession of the battery.

On your last point, we expect to offer the latest tech that is compatible with the owner's LEAF at the time of sign-up for around $100 per month. We are trying to maintain backward compatibility as we develop future technology.

--

TaylorSFGuy said:
Well it is something - does this mean I can't have my battery exchanged to newer technology or similar in the event there is no new technology until my battery displays 8 bars or less? What is the plan for those of us that need more than that - a battery with 8 bars is just as useless to me as one with 10.

What happens at the end of ownership? Is this product replacement or does the pack belong to Nissan and is a separate part from the car itself. In other words, who owns the pack at the time the vehicle is sold?

Should the newer technology mentioned come with a larger range is it Nissan's intention to charge a higher price than $100?


OMG well you answered my question!

So this really is as bad as it sounds -- once signed up, new battery pack is leased in perpetuity and any new buyer would need to agree to assume that lease or risk? What? Repossession of the vehicle by Nissan? Repossession of the battery pack? Being sued for failing to pay?

I wonder if this would depreciate the value of used Leaf's even more than fear of depleted batteries. You would have two classes of used Leafs -- one where the cars come free and clear, and others where they are partially owned by Nissan and have perpetual leases on them.

The French Nissan website is more clear -- you can buy the Leaf in France at two price levels. One, where you own the car and 'lease' the battery for 79 Euros per month, has a much lower MSRP. The second, where you own the car in total, outright, is thousands more to buy.

I do not think Americans are ready or desirous of this type of paradigm shift. Extended warranty packages, yes. Costly 'leases for life'? Probably no.
 
ITestStuff said:
evnow - your replies here are coming off a little trollish. I'd suggest you re-read some of them.
i think we need to take a step back here. this lease program may not be for everyone but it is a good program and will greatly benefit some.

ITestStuff said:
As for why people want to know the number, for some it's because it's now something they want to consider as a part of TCO. Some folks may want to baby their cars and keep them for 25 years.

this statement is ridiculous. there is NO WAY to determine TCO of a purchase that far into the future UNLESS YOUR ARE IN A LEASED PROGRAM. u sign this lease today, you are locked into that price for the life of the car. That is the basics of leases. if you are "planning" to purchase something then you will not know what that price is until you buy it. did you have any inkling of a clue as to how much a 2013 LEAF S would cost? there was a thread here to predict the price. how close did you come? what about a 2014?

ITestStuff said:
As for those that think Nissan will actually make an improved battery pack available in the future, unless they have made a firm commitment on that topic, you should assume it is NEVER going to happen. The costs get to be too big to handle. It's not about commitment to EV's, it's just a business decision.

the announcement did not provide a lot of details on the program but it did seem (at least to me) to commit to providing the latest advances in Li battery chemistry. Considering the speed of innovation in this field, one has to take that to mean that the lease pack will be as good or (more likely) better than the OEM pack. I dont mean capacity, i mean better heat tolerance, better pack balancing, more cycles, etc. that kind of stuff. I can see possible capacity increases but that is not going to happen any time soon and we have people with immediate needs.

i think we need to realize the problem from Nissan's perspective. There will be a significant number of people who will miss the capacity warranty due to high mileage. Nissan must weigh that against their cost, the current state of battery technology and the a balanced solution. The battery costs are still high, significantly so and apparently on the survey Nissan provided us, many said they would not pay that much money for a replacement pack. So if you got a 7 year loan on the car and you are faced with getting another loan for $10,000 or whatever in year 4 because you have exceeded the 60,000 miles? well that is not going to make anyone happy.

now remember; there is no perfect solution. its really getting something that is the best fit for the customer and the company. I dont "think" the lease program is a perfect solution but it does seem to cover the majority of people's needs and we cant even make that determination until we get the details of the program for mileage, tiers, etc. So we can only go with what we know.

We may not agree or understand everything a company does but Nissan has demonstrated the ability and willingness to change based on customer demand. As expected, we consider their speed of change to be slow. but it only takes a few seconds to think of an idea, two minutes to post it on a blog and half a day for a good idea to go viral on this site. and that is when the impatience sets in. No company can respond that quickly. Somewhere I read it took over a mile for a Cruise Ship to make an emergency stop. Nissan is a very large company and as much as they want to respond quickly, it probably takes them a mile to stop and change course as well.

Nearly every complaint here about this program has to do with some faraway scenario years in advance. I fully believe that this is not the last word we will hear from Nissan concerning battery replacement options.
 
I find it interesting to compare Nissan's Announcement and Tesla's announcement that happened on the same week.

Nissan announce the rental/swap program and get a lot of angst for not providing details and the announcement is viewed by many as half-baked. The announcement is not particularly well received.

Tesla announce a swap/rental program and announce the rental price just like Nissan do, but did not announce what the formula will be for selling a new pack to someone who does not reclaim their original pack. This lack of detail is glossed over and the announcement is well received by most.

Both announcements lack details, Nissan are criticized for lack of detail while Tesla are not.

I think it comes down to way the companies handled the announcements. Nissan do a press release issued by an employee, Telsa do a live announcement by the President/CEO. Ghosn where are you?
 
GerryAZ said:
As the owner of a 9-bar car in Phoenix, I want to give my perspective on this battery lease program and the battery capacity warranty program. There were three main reasons why I purchased instead of leasing my Leaf:
1. Lease rates were high even with substantial down payments in June 2011.
2. I remembered images of people who leased EV1's trying to save them from being repossessed and crushed while those who purchased the original RAV4 EV's kept driving electric.
3. I intended to keep the car long enough to justify purchase instead of lease and I had a plan to use the old battery for backup power once the capacity dropped enough to need replacement. I anticipated that I would get 4 years on the original battery since I expected Phoenix to be harder on batteries than cooler climates even though Nissan indicated 80% remaining capacity after 5 years and 70% after 10 years with no temperature disclaimers.

When we began seeing early capacity loss last summer, I became concerned about the cost to keep my car on the road with adequate range for my daily needs. I became even more concerned when I found out there was no way to purchase either replacement modules or an entire replacement battery (at any price) and wondered what would happen if a battery were damaged due to road hazard or accident. The initial reaction to capacity loss by Nissan (normal, no problem) and their apparent surprise that owners would actually want to buy a battery added to my concerns about long-term use of my Leaf. I just kept driving and hoped that things would work out. Although there was some media attention in Phoenix, I believe that Tony's range test in September was the catalyst that forced Nissan to address premature capacity loss. Special thank you to Tony for organizing the test and to everyone else who participated--without this effort and the subsequent discussions on the My Nissan Leaf Forum keeping the capacity loss issue in the limelight, there would be no battery capacity warranty or replacement program.

The 9-bar capacity warranty and this battery replacement program (lease or rent, whatever it is called) are not perfect, but they do give me some assurance from Nissan that I will be able to keep driving my Leaf for a while. Since I am averaging about 1,000 miles per month, I will likely receive at least one battery replacement/refurbishment during the 5-year, 60,000-mile warranty. I don't want to give my battery away so I probably will not use this lease/rent program, but it is good to have as a worst-case alternative. At $100 per month for the battery lease combined with my off-peak power costs for charging, my total monthly "fuel" cost to drive the Leaf would be about the same as current gasoline costs for a similar-sized car.

When I reach the point a few years from now that I need to buy a new battery, I hope Nissan is willing to sell either a complete battery pack or 96 modules. If Nissan will not sell modules, I will be looking for aftermarket alternatives and will only use this lease program if there are no other options available.

Gerry
(owner of silver 679 in the range test)


Gerry; i understand your plight and the lease program will benefit you MUCH more than it will benefit anyone else. you will essentially be starting from scratch after 60,000 miles. This is essentially buying Nissan time to get a better chemistry on the books. So we can only speculate how quickly that can be done and how effective it would be.

So guessing you will get your first replacement this Summer and very likely your 2nd before your 5 year time period unless they give you a 12 bar replacement pack. that might eek you just beyond the 5 year/60,000 time period. that is 2016.

I have to think there will be a pretty robust 3rd party battery option out there by then. Or pretty close. Now without details of the program its really impossible to say what your options are but if it could be done;

I would lease the battery assuming the termination fees/sign up fees, etc are reasonable until an acceptable 3rd party solution can be found. By then battery prices should be half of what they are today and guessing, Nissan will be selling them outright anyway.
 
Publius said:
Is there anything that says you have to give Nissan your old battery? The information I'm seeing says anyone who has a LEAF can opt into the program at any time, but if you stop paying they will take the battery. What about when someone opts out, does that car become permanently useless or will Nissan allow a new owner of the car, or maybe the same owner at some later point, to buy into the program and receive a new battery without having one to exchange? Will that cost more?

I'm not 100% sour on the idea of this program because I think it does provide an option for high mileage owners/those in hot climates, and it does provide some answers to those wondering what they can do after 60,000 miles if they keep the car-- sort of a worst case scenario, I guess. I don't think this announcement does anything for resale values, though, which is disappointing. However, after much thought, I don't think this is going to make any difference for the vast majority of us because by the price of replacing the battery will likely change by the time we exceed our warranty and desire a new battery.

**Entering the lease program means you give up your OEM battery.

** there is no "term" for the lease. so you can start the lease at any time with any level of degradation or mileage.

** When you opt out, you must return the leased battery pack and you DO NOT get your OEM pack back. You are then responsible for replacing the pack thru whatever source is available (most likely Nissan or an aftermarket supplier)

Is anyone looking at this lease idea as a way to buy time for those with an immediate need until technology advances can provide us a better solution? and at a cost we can manage?
 
I find it interesting that the biggest cheer leaders for this battery rental program are people that are currently leasing their cars.

Current owners seem to be less enthused.
 
leaf4me said:
Maybe "pie in the sky", but what if Nissan modified the battery rental program such that you could terminate the program at any time, but at the time of termination you would need to pay:

(((bcpt) - (bcos)) / (bcps)) * (price of a new battery pack)

where bcpt = battery capacity of the rental battery at the time of termination
and bcps = battery capacity of the rental battery at the time you started the program
and bcos = battery capacity of your old battery at the time you started the program
and (price of new battery pack) = the price of a new battery pack at the time of termination.

Thus at the time of termination, you would be paying for any additional battery capacity that you had at that point compared to what your old battery had at the time you started the program. Would that make everyone happier with the program?

This is all speculation.
no one knows if Nissan is not planning on doing that, so we might be happy about this program after all. Remember the announcement only gave the basic guidelines of the program. We have no other info on the details of the cost.

we know that there is a cost of about $100 a month. Now is that the only cost option? dk. hope its not. a "one size fits all" is almost always a fail. Hoping there will be cheaper and more expensive options to cover light and heavy drivers.

There is no mention of termination fees but there has to be something concerning that. There is no such thing as a "forever" plan that has an associated monthly cost. That is simply not how cars work. There must be some mechanism to allow people to sell, trade or give away their cars.

One can be relatively certain that the termination fee will not hold the owner responsible for the remaining value of the pack. it will most likely be a set fee beyond the initial set period of a year or something.
**end of speculation**

The only thing we know for sure is change. There are too many people here with the idea that this is the final word from Nissan on battery replacement options and this program is it for the next 100 years. I find it difficult to believe that anyone thinks this considering the circumstances.

I can understand someone taking on the notion that Nissan threw this lease idea together at the last minute to buy time until they can figure out a better solution. But the idea that they are done with battery replacement options?? like Really?
 
KJD said:
I find it interesting that the biggest cheer leaders for this battery rental program are people that are currently leasing their cars.

Current owners seem to be less enthused.

Rah Rah Nissan!! Go Nissan Go!!

Sheesh Boom Bah!!
 
Here's a thought. Because we all own our existing battery, why not swap them when necessary as determined by the customer for a new or reconditioned battery? The charge for that would only have to be for the cost of refurbishment and maybe a few percent higher. That way the price of a new battery is a moot point. Every time you swap you get a 12 bar battery for less than the price of a new one and you still own it.
 
DaveinOlyWA said:
I would lease the battery assuming the termination fees/sign up fees, etc are reasonable until an acceptable 3rd party solution can be found. By then battery prices should be half of what they are today and guessing, Nissan will be selling them outright anyway.

Brian Brockman told me that Nissan has no intention of selling the battery pack outright. I will take him at his word.
 
DaveinOlyWA said:
KJD said:
I find it interesting that the biggest cheer leaders for this battery rental program are people that are currently leasing their cars.

Current owners seem to be less enthused.

Rah Rah Nissan!! Go Nissan Go!!

Sheesh Boom Bah!!
Why do you take defending nissan as if it were a personal crusade?
Even brian is more circumspect.
 
KJD said:
I find it interesting that the biggest cheer leaders for this battery rental program are people that are currently leasing their cars.

Current owners seem to be less enthused.

I disagree with you as a purchaser, it's an additional option whereas before I was unsure what I would do when he battery wore out or the 120 mile battery is released. The program is irrelevant to folks leasing their cars, unless they are intending to purchase at lease end.

Durability concerns (if you can live with 9 bars) are a moot point.
If Nissan can offer a 2nd gen battery to us for $100/month and we get say 30% more range that sounds good. Upgrade-able car!! That would be cool! Of course there is no guarantee it'll happen, but at least they are thinking about offering it.
 
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