My suggestion for a battery plan ----"Buy a Bar"

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Newporttom

Well-known member
Joined
Jan 4, 2011
Messages
115
Location
Saint Johns, FL
The "Buy a Bar" Plan

The proposed $100 battery lease program has a lot (most?) current owners of Leaf's unsatisfied/concerned. It also negatively impacts future owners. Including potential end-of-lease owners and potential purchasers of our vehicles.

The problems seem to fall into 4 areas:

1. There was no "end-game" in the battery lease, except to lose both the old batteries and the new batteries, and end up with a car with no battery.

To keep the batteries you end up with a perpetual payment. And to sell it you have to find someone who will take on the payments. It's like you bought a rolling timeshare.

2. The $100 a month pretty much negates the financial benefits of driving an electric.

3. The guaranteed minimum battery level on both the lease plan and the warranty plan is 9 bars, and for many people, 9 bars renders the cars useless for their needs.

4. It lumped all Leaf owners regardless of their driving needs into the same basket.

Here's a proposed plan that eliminates all those issues:

The Buy a Bar Plan:

At ANY point, an owner (or lessee) of a Leaf can buy a bar of capacity that is guaranteed for 6 months for $250.
That capacity will come from any source Nissan wants, and in fact will probably be from used/refurbished/refreshed/replenished batteries.
The 6 month guarantee is like a tire guarantee. If if fails at 5 months, Nissan doesn't owe you a new 6 month fix, just 1 month

Here's why this is beneficial to both Nissan and current/future owners:

1. There's no "end-game" problem anymore. Nissan never has to get into the battery confiscation business
2. No obligation is ever passed on to a future buyer. No rolling timeshares. You can actually sell your used Leaf.
3. Worst case scenario for an owner is that whatever level he/she decides to keep their Leaf at it would only cost them $500 a year (versus $1200)
4. Since an owner would like to extend the life of the bar they bought and maybe get 9 months, 12 months or more...... they will treat their battery with care.
Do all the right things (80%, no long full charges etc.) With both the warranty and lease situations, once you hit 9 bars, you have no incentive to keep it above eight. And if Nissan bumps you higher than 9...... you have an incentive to get it below 9.
5. This eliminates the problem for many owners that a Leaf with 11, 10, or 9 bars is no longer a viable vehicle. Every person that owns (or leases) a Leaf can decide what level they want to maintain.

So if I own a Leaf and my commute is 12 miles, I am happy as a clam with 9 bars. While under warranty I stick with the 9 bars. When out of warranty I'll buy a bar anytime it falls below 9. But then the 2017 Leaf comes out and I must have it.... I sell my Leaf to someone who needs 11 bars, so he buys 2 bars at $500 and he maintains 11 bars from that point.

Let's say you trade it in on a non-Nissan (crazy as that sounds). It has 9 bars. The dealer takes it over to Nissan and they spend $1500 and now they have a 12 bar Leaf and the new owner can decide what level to maintain.

6. Nissan will get money SOONER in many cases. If a current owner HAS to have 12 bars, or 11 bars, etc., they can buy a bar while still under the warranty or still under the lease !! I have 42 months left on my purchase. I hate to tell you how under water I am or how high my payments are. Nissan will not getting any money from me for the next 42 months no matter what. And I am going to slowly watch my vehicle become non-viable for my needs. (I lost my first bar 2 days ago.)

But if you had a Buy a Bar plan in place now, I would do it to keep my car at 12 bars. And I would do it every 6 months from here on out.

Lessees can do the same thing!!

7. Nissan has just ensured no battery warranty costs for owners under warranty that buy extra bar(s). If I am maintaining my bars at 11 and paying $250 every 6 months to do so..... barring some kind of catastrophic failure, the car will never get below 9 bars


In short I think this plan would keep everyone happy, and protect their investment in their Leaf.
 
I think this is a better option than the $100/mo rental, but it would be a major blow to Nissan if anyone wanted to go from 11 bars to 12 bars due to the way Nissan chose to hide the extent of battery degradation from owners with non-linear battery health bars. Buy a bar would only work well if the bars were linear, but the plan it is much easier to comprehend and allows owners to keep their packs.

But ultimately, I would prefer to just know the cost of replacement modules and that's all. Warranty the modules themselves for a certain period of time / miles, but tell us the damn price.
 
I like this idea too. Like you say, Nissan can then use whatever "mystery meat" they wanted to give you the bar back. Heck, the could even use brand new cells if they wanted to, and never have to 'fess up about it. :D
 
I like that plan. But it could only work if the Leaf kept track of individual cell capacities. In that case, the capacity increase could be performed by replacing low capacity cells with new or refurbished cells of known capacity. A procedure that is simple enough to be performed by dealers. If only the capacity of the whole pack is known (likely, since there is only one Hall probe), then it would probably be too difficult to increase the capacity by a given amount without some testing of the pack.
 
The idea sounds great, though the price sounds low.
This may be an opportunity for a third party to step in and solve the problem and make some money.
 
Newporttom said:
The Buy a Bar Plan:

At ANY point, an owner (or lessee) of a Leaf can buy a bar of capacity that is guaranteed for 6 months for $250.
That capacity will come from any source Nissan wants, and in fact will probably be from used/refurbished/refreshed/replenished batteries.
The 6 month guarantee is like a tire guarantee. If if fails at 5 months, Nissan doesn't owe you a new 6 month fix, just 1 month
Plan might work for Nissan if a bar cost $2,000-$3,000. Otherwise, no way.
 
I cannot see how a gradual improvement of the battery would work on the technical side.
My understanding was that
"normal" battery degradation would affect all cells, so you just cant swap a few "weak" cells out.

So in any case you have to swap the old "degraded" pack for a full fresh one. Was that the idea?

In the end it would be nothing else but trade-in your old pack and get a new pack. Obviously a 11 bar pack will have greater trade in value than a 9-bar pack, so buying 1 bar will be indeed cheaper, although I would suspect it will not be a linear scale.

If you package this scheme properly for the "dumb" masses, it could appear that a new battery's perceived price (i.e. the difference in cost for a brand new battery minus the old one) is low enough so that no one seizes up.
 
"Plan might work for Nissan if a bar cost $2,000-$3,000. Otherwise, no way."

I think your costs are WAY too high. With it's $100 plan Nissan has established the cost of maintaining a consistent level (9 bars) "forever" at $600 every 6 months. And that is after they have invested the cost of a brand new battery pack.

My plan would not have the outlay for Nissan of a new battery pack, plus some people would start paying while still under the original warranty/lease.
 
klapauzius said:
I cannot see how a gradual improvement of the battery would work on the technical side.
My understanding was that
"normal" battery degradation would affect all cells, so you just cant swap a few "weak" cells out.

So in any case you have to swap the old "degraded" pack for a full fresh one. Was that the idea?

In the end it would be nothing else but trade-in your old pack and get a new pack. Obviously a 11 bar pack will have greater trade in value than a 9-bar pack, so buying 1 bar will be indeed cheaper, although I would suspect it will not be a linear scale.

If you package this scheme properly for the "dumb" masses, it could appear that a new battery's perceived price (i.e. the difference in cost for a brand new battery minus the old one) is low enough so that no one seizes up.

I certainly do not really know the technical side. But on the $100 plan after they give you a new set of batteries, they then plan to maintain a constant level as I suggest "forever"...... Does that mean they intend to keep putting new sets of batteries in?
 
Newporttom said:
My plan would not have the outlay for Nissan of a new battery pack, plus some people would start paying while still under the original warranty/lease.
To satisfy the demand, Nissan would have to refurbish the pack with all new cells (they all degrade at about the same rate). Also, with your plan you could buy 3 bars for $750 and (9 -> 12) and then never pay again if you don't want to. There is no way Nissan can refurbish your pack for $750.
 
I still say "Lease a Car"" makes more sense. Why pull a 10 bar battery out of a car that needs twelve, and install it in a car with 8 bars that needs nine, and install the 8 bar battery into a car that has 6 but needs 7? Just swap cars. Do you know what would be really awesome? If Nissan could lease rebuilt cars. I know, the idea is crazy, but Nissan could lease cars with bars. 12 bars costs you $400 a month, 11 bars, $350, 10 bars $325, 9- $305, you get the idea. You lease a car with the capacity you need. When you lose a bar, you get a different car that has been remanufactured as needed. All maintenance included in the lease price, you don't buy tires or lights or anything. It is like a car rental on steroids. Now how the government figures out how to tax us on this, who knows. This is the correct way to do this, but that doesn't mean that Nissan and the Government would make it possible. If the government would give half the café or carbon or whatever credit to Nissan for a remanufactured EV that they give for a new car, this could become a reality.
 
The proposed $100 battery lease program has a lot (most?) current owners of Leaf's unsatisfied/concerned

I think that's totally not true. Most of the Leaf ownters don't even know this blog exists and it's very well known that people that post on blogs are usually the dissatisfied ones. There are thousands of Leaf owners that are very satisfied with the Leaf and the batteries, including me. Nissan has said that this program is not for most Leaf owners and I agree. I intend to keep my Leaf for at least 10 years and not take advantage of this program, as will many, many other Leaf owners.
 
Stoaty said:
Newporttom said:
My plan would not have the outlay for Nissan of a new battery pack, plus some people would start paying while still under the original warranty/lease.
To satisfy the demand, Nissan would have to refurbish the pack with all new cells (they all degrade at about the same rate). Also, with your plan you could buy 3 bars for $750 and (9 -> 12) and then never pay again if you don't want to. There is no way Nissan can refurbish your pack for $750.

I don't think this makes sense. If you can't replenish without a entirely new battery pack, then why are they saying for both the warranty and the new proposed plan that if you fall below 9 that they'll bump you up.

"This warranty covers any repairs needed to return battery capacity to a level of nine remaining bars on the vehicle’s battery capacity level gauge. If possible, the lithium-ion battery components will be repaired or replaced, and the original battery pack will be returned to the vehicle. If necessary, the lithium-ion battery will be replaced with either a new or remanufactured battery. Any repair or replacement made under this Lithium-Ion Battery Capacity Coverage may not return the battery to an “as new” condition with all 12 battery capacity bars, but it will provide the vehicle with a capacity level of nine bars or more on the battery capacity level gauge."


However..... I've done what I wanted which is to propose an alternative. Maybe the Nissan people will see it. Maybe it's undo-able. But I felt like I had to come up with something for those that need more than 9 bars.
 
Newporttom said:
I don't think this makes sense. If you can't replenish without a entirely new battery pack, then why are they saying for both the warranty and the new proposed plan that if you fall below 9 that they'll bump you up.
That's the reason they set 8 bars as the trigger for warranty in 5 years/60,000 miles. Nissan's calculation is that not many Leafs nationwide will be able to collect on the warranty (not true in Arizona obviously). If you have a warranty claim and you only have a year left on your warranty, Nissan can stick in a 10 bar pack that someone else turned in. For the new proposed plan, they would probably bump you up to a 12 bar refurbished pack, then continue to collect $100 per month for quite some time without having to do anything more (again, unless you live in Arizona). So the new plan is good for those that live in hot states, who would do much worse if they bought a new battery and trashed it in 3-4 years.
 
Newporttom said:
The Buy a Bar Plan:

At ANY point, an owner (or lessee) of a Leaf can buy a bar of capacity that is guaranteed for 6 months for $250.
That capacity will come from any source Nissan wants, and in fact will probably be from used/refurbished/refreshed/replenished batteries.
The 6 month guarantee is like a tire guarantee. If if fails at 5 months, Nissan doesn't owe you a new 6 month fix, just 1 month
There current plan is $600 for 30% degradation. You want $250 for 10% degradation. Even assuming linear degradation you want them to reduce the price to 1/6th of their proposal (or about $15 a month !).

Let us assume a new battery costs $12k. Salvage value of a 70% battery is $3k. We are also probably looking at a few hundred dollars to replace the battery at the dealership. How will your plan work financially ?

The current $100/month assumes the battery lasts about 7 years. For your plan to work it needs to last 42 years. All assuming zero interest rate.
 
evnow said:
Salvage value of a 70% battery is $3k.
Can you explain where 25% of the new price comes from?
I heard 50% quoted....obviously no real market for used automotive packs exists yet, but nevertheless would be curious if that number is more realistic than e.g. $6k?
 
klapauzius said:
Can you explain where 25% of the new price comes from?
I heard 50% quoted....obviously no real market for used automotive packs exists yet, but nevertheless would be curious if that number is more realistic than e.g. $6k?
Would you pay $6k for a 70% degraded battery ?

ps : I see $100/kWh quoted in a sandia study.
 
evnow said:
klapauzius said:
Can you explain where 25% of the new price comes from?
I heard 50% quoted....obviously no real market for used automotive packs exists yet, but nevertheless would be curious if that number is more realistic than e.g. $6k?
Would you pay $6k for a 70% degraded battery ?

ps : I see $100/kWh quoted in a sandia study.

For lead-acid $100/kWH is near the retail price. Would that be same for Li-Ion?
I see that high capacity Li-Ion batteries retail for substantial higher prices ($400-$500 / kWH).
So how can you buy one for stationary applications for $100/kWH right now?
 
It is estimated that Tesla is able to build their pack for less than $200 / kWh and the individual cells probably sell for about $160 / kWh.

Model S Battery Pack - Cost Per kWh Estimate

One might estimate the retail price of a Tesla pack as being $320 / kWh given the cost difference ($8,000) between a 60 kWh and 85 kWh Model S.
 
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