Battery leasing

Straylight

Esteemed Pedelecer
Jan 31, 2009
650
2
If the battery prices contiue to rocket, maybe manufacturers will be tempted by this buisiness model:Buy the car, lease the battery - Springwise

It'd reduce the initial outlay for the customer at least, and all that would be required is for the owner to plug their battery into their PC every month or so (via USB of course :)) to upload the usage data to the manufacturer.

Just worked out that my Wisper battery, if it only lasted 2 years, would only cost £21.42 (at the most)per month to lease, so about the same as a contract mobile phone. This is not factoring any rate reduction caused by battery degradation, so I suppose that figure would be an average cost over the period, to allow Wisper to recoup the cost.

I think it'd certainly make the bike seem a less scary prospect to people (and I know some) who say they'd love to get an e-bike, but they simply can't afford it.
 

flecc

Member
Oct 25, 2006
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They don't know their auto industry history, this line appears:

"will come with an owner financing package unheard of in the auto industry."

Many years ago there was an electric Peugeot 207 using a huge NiMh battery. The battery was hoped to last four years but cost £4000 to replace. That scared off buyers so both car leasing and battery leasing were tried instead. It didn't succeed for long, batteries not lasting as well as expected and it was ahead of it's time anyway.

Battery leasing could be a good idea for e-bike commuters though not for the leisure market, but I wonder if the potential market is big enough. Such schemes need quantity and only a minority of e-bike users are commuters or daily users.
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Straylight

Esteemed Pedelecer
Jan 31, 2009
650
2
So then the monthly charge would reflect the lighter usage, as I see it, it works by having a baseline fee to cover natural degradation if the battery wasn't being used at all, then an additional payment for each Whour used, less acredit based on the current state of the cells. So what you end up with is an ever decresing monthly fee, as long as your monthly usage remains concistent. At least I think thats how it works....:confused:
 
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flecc

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Oct 25, 2006
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That sounds rather complicated, I think customers would rather have a simple fixed monthly charge, regardless of remaining life.

Maybe batteries just aren't good enough yet to be leased with a fair deal for the customer. The much longer lived (4 years or more) LiFePO4 would be more suitable once they become available.
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Wisper Bikes

Trade Member
Apr 11, 2007
6,239
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Sevenoaks Kent
Leasing

Interesting Straylight

With batteries getting better day by day it must be worth investigating.

I will have a look at it.

All the best David
 

Bigbee

Esteemed Pedelecer
Oct 12, 2008
445
1
I think UK ebike companies are ripping " us " off with inflated prices.The battery is a major part of the bike and is about a third of the cost of the bike.Imagine buying a new car for £15k and knowing you'll need another engine in two years and that will cost you £5k!
 

flecc

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Oct 25, 2006
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I think UK ebike companies are ripping " us " off with inflated prices.The battery is a major part of the bike and is about a third of the cost of the bike.
Definitely not, quite the opposite in fact. For example, the Panasonic battery is cheapest of all in the UK, the prices in mainland Europe and Switzerland often very much higher, over £100 higher in one case. In fact some European owners were looking into buying them from here a little while ago. Only in Japan are they cheaper, though if personally imported to here it worked out as much as the UK price.
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musicbooks

Esteemed Pedelecer
Oct 10, 2007
719
29
If the battery prices contiue to rocket, maybe manufacturers will be tempted by this buisiness model:Buy the car, lease the battery - Springwise

It'd reduce the initial outlay for the customer at least, and all that would be required is for the owner to plug their battery into their PC every month or so (via USB of course :)) to upload the usage data to the manufacturer.

Just worked out that my Wisper battery, if it only lasted 2 years, would only cost £21.42 (at the most)per month to lease, so about the same as a contract mobile phone. This is not factoring any rate reduction caused by battery degradation, so I suppose that figure would be an average cost over the period, to allow Wisper to recoup the cost.

I think it'd certainly make the bike seem a less scary prospect to people (and I know some) who say they'd love to get an e-bike, but they simply can't afford it.
That's a great idea. I'd certainly be tempted.

What do you think 50C, Wisper et al?
bw
musicbooks
 

Wisper Bikes

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Apr 11, 2007
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Absolute Rubbish

I think UK ebike companies are ripping " us " off with inflated prices.The battery is a major part of the bike and is about a third of the cost of the bike.Imagine buying a new car for £15k and knowing you'll need another engine in two years and that will cost you £5k!
Hi Bigbee

If only you knew how much effort was being put in by all the manufacturers and dealers in this country, trying to make the electric bike a mainstream vehicle. I know most of them personally and I can assure you that none of them making fortunes. Far from ripping you off, we are all making the bikes accessible to the British public at personal cost to ourselves.

I have been working on the Wisper project since June 2005 and since September 2007 full time sometimes 16 hours a day 7 days a week and so far have not taken a penny profit. So I must say I found it incredible to read that you believe companies like Wisper are ripping off the British public.

The fact is, the battery accounts for 25 to 40% of the cost of the bike depending on the power of the battery and the quality of the components used in the bike. A lot of the profit made by the battery companies is going straight into the incredibly expensive research and development stage of manufacturing new batteries, batteries that will eventually last for the life of the bike.

We are all partners and pioneers in this amazing new mode of transport, manufacturers, agents, retailers and most importantly the every day users of electric bikes. I agree it is costing all of us more in the early days than it will in the future but we can all be proud of what we are achieving together.

Sorry to bang on but I hope you understand I am VERY passionate about the business! :eek:

Best regards David
 
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Bigbee

Esteemed Pedelecer
Oct 12, 2008
445
1
What ever,if you look at the component breakdown of the bikes its hard to justify the rrp's of £1000 to £1500 of most bikes.Bafang motor on ebay for £75.00, flecc says you can get a battery for £100,£50 gears?frame £20 to £30?
 

flecc

Member
Oct 25, 2006
52,851
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What ever,if you look at the component breakdown of the bikes its hard to justify the rrp's of £1000 to £1500 of most bikes.Bafang motor on ebay for £75.00, flecc says you can get a battery for £100,£50 gears?frame £20 to £30?
I have never said that a sound lithium e-bike battery can be bought for £100.

Please don't say I have.
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rog_london

Esteemed Pedelecer
Jan 3, 2009
764
2
Harrow, Middlesex
We are all partners and pioneers in this amazing new mode of transport, manufacturers, agents, retailers and most importantly the every day users of electric bikes. I agree it is costing all of us more in the early days than it will in the future but we can all be proud of what we are achieving together.

Sorry to bang on but I hope you understand I am VERY passionate about the business! :eek:

Best regards David
I think that's very fair. No matter where one sources a battery from, the price is not going to be much different to that charged by yourselves, bearing in mind the technology and the capacity. Some work out at rather less value than the ones you supply on that basis. I don't know where this 'rip off' idea comes from.

I'm also a bit dubious of this 'two years and you're dead' idea which seems to be the gospel preached on here. We really don't know what the longevity is going to be of the batteries presently on the market, and although all technologies deteriorate with time whether they're used or not, what was available two years ago doesn't bear much relationship to what is about now. Development is an ongoing thing - even SLAs are still undergoing development, and that basic technology has been in commercial use for about 150 years.

I'm not talking about charge cycles here - that's easy to assess at the production stage. I'm talking about how a battery may deteriorate due to storage - its 'shelf life'.

An e-bike is not cheap transport - if that's what you're looking for, you will be disappointed. It may be convenient transport, it may be fun, it may be good exercise, but if you don't want to spend serious money up front you will get rubbish and no support, and either way sooner or later you'll need to fork out again to replace the battery. It's only my opinion, but it's really the *only* personal electric transport which works at the moment (discounting mobility scooters, ho ho), and that's only happened within the past two or three years.

Rog.
 

Tiberius

Esteemed Pedelecer
Nov 9, 2007
919
1
Somerset
What ever,if you look at the component breakdown of the bikes its hard to justify the rrp's of £1000 to £1500 of most bikes.Bafang motor on ebay for £75.00, flecc says you can get a battery for £100,£50 gears?frame £20 to £30?
As someone who has built a couple of e-bikes from components (not kits), I don't think £1,000 for a factory one is over the top.

Nick
 

Wisper Bikes

Trade Member
Apr 11, 2007
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Cheap bikes

Hi Bigbee

You can buy a complete bike in China for £17.00 retail, you can buy an electric bike for under £200.00, you can buy a motor for £17.00, a frame for £8.00 a battery for £45.00 etc. etc. but you would not particularly want it. And forget RoHS and EN15194 compliance.

In China you can also pay over £300 for a frame and over £100 for a hub gear box. We have just spent £50,000 on 500 hub gears with rear disc brakes. So basically you get the quality you pay for. Do you remember the Panasonic electric bike retailing in Japan for nearly £7000.00?

Consider this: It is no coincidence that we all charge about £10 per Wh I promise there is no cartel. The fact is state of the art, high quality batteries cost a lot of money and we all make about the same margins.

All the best David
 

flecc

Member
Oct 25, 2006
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I'm also a bit dubious of this 'two years and you're dead' idea which seems to be the gospel preached on here. We really don't know what the longevity is going to be of the batteries presently on the market,
I did take on one of the first of the new generation batteries for testing, and since it's now just past 18 months I have a very good idea of how they perform. It's been very much better in all respects from the previous incarnations, except in life pattern, and there it follows the predictions of the battery industry for lithium batteries using predominantly manganese cathodes.

In other words the capacity reduction follows the same declining pattern, less severe but nonetheless enough to embarrass the owner who uses most of the range in their trips. In addition the performance reduction through the steady decline in cell voltages is apparent. Cutting out is no longer the problem it once was with the most powerful motors, but the climb ability is appreciably below what it was when new.

With most e-bikes using battery capacities commensurate with their motor power, around two years will still be about it for many owners, though those doing shorter trips will be able to extend that, but still not with the same performance they once had when the battery was new.

I did in fact publish a predicted life chart in the forum some time ago, illustrating this principle with predictions of life expectation for owners with differing trip lengths, the chart from memory extending to six years. However that didn't take into account this performance decline factor which could become increasingly important. To give an illustration of the effect, at the outset I could tackle one of the longest steep hills in my area with ease in either of the two lowest gears at around 8 or 9 mph. After about 230 charges it became the lowest gear only at around 7 mph, and now at well over 300 charges I prefer to avoid that hill altogether because it's so much harder on me slogging at 6 mph for 15 minutes. No cutting out any more as happened with this very high consumption powerful motor with earlier batteries, so the voltage remaining above 32, but obviously a lot lower under load than in it's earlier days

With perhaps the honourable exceptions of the high capacity Wisper 14 Ah battery and the very well managed Panasonic system battery, I don't see the new generation batteries having greatly extended life yet, though their performance at all points in that life will be better. I think we are going to have to wait for iron cathodes before theres a really appreciable change in the life for each usage pattern.

It's only my opinion, but it's really the *only* personal electric transport which works at the moment (discounting mobility scooters, ho ho), and that's only happened within the past two or three years.
A bit harsh perhaps? The Panasonic system bikes have been very viable for 7 years now, and Powabykes, albeit heavy, with up to 30 mile range capability have been on the roads for a decade. Lithium batteries did put a hiccup in the progress, so it's easy to forget how well NiMh performed in much earlier years on such as the eZee bikes which in their modern incarnations have been around for over five years now.

I also think the e-scooter now just as viable as e-bikes, the cheap ones with ranges matching or exceeding most e-bikes, and a new lithium batteried one cheaper than the Vectrix with performance far beyond e-bikes.
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flecc

Member
Oct 25, 2006
52,851
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Now, back on topic. What about this leasing idea?

bw
musicbooks
It will be a good option to have, but I think only commuters are likely to want to pay regular monthly amounts. Also those buying the higher price e-bikes will often have no problem with the outright purchase price.

Every leasing scheme I've ever seen is dearer than outright purchase for sound reasons, so those able to afford the outright purchase probably wouldn't participate. Historically there's been a judgment to be made on the value of retaining the cash or spending it, but with interest rates so very low now, there's little deterrent to capital expenditure at present.
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CeeGee

Esteemed Pedelecer
Feb 4, 2009
328
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Weybridge, UK
Possibly better value for the customer is to pay 25% deposit and the balance over 18 months at a low interest rate. Now if Wisper were to introduce that scheme, I for one would be very interested. ;) :)

Colin
 

Straylight

Esteemed Pedelecer
Jan 31, 2009
650
2
I think it may well be a good option (leasing or HP) for people who have fine bikes, but whose first batteries are reaching the end of their life, as these, when faced with a bill of £500+ just to keep their machines on the road, may well be tempted to quit e-biking altogether. This would be no good for an industry that is attempting to establish itself as a provider of mainstream personal transportation (not to mention the environmental consequences). What I mean is that it'll be a long time before an e-bike is concidered a necessary part of existence, by many people, in the same way that a car is concidered so. I would bet that by most e-bike owners, it is thought of as being the 'alternative', and the only way to begin to bring this attitude around is to make it easy for people to continue riding over an extended period of time.

On the subject of low interest loans, the loss of immediate income may not have to be bourne by the manufacturer themselves, as there are finance companies that provide this service. For example, I've just paid such a loan off (0% interest) after having laser eye surgery 3 years ago, and the loan agreement wasn't with the clinic, but with a finance house called Hitachi Capital. Now I've no doubt that the clinic was charged a fee for the service, but on such a small amount per battery (circa £500), this fee could even be added to the loan amount and paid by the customer, maybe in exchange for an extended warranty. Aside from the financial risk caused by the warranty, the net cost to the manufacturer would then be nothing.
 
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