LET’S DO THE MATH: VinFast explains cost of buying EV with or without

VinFast is making electric cars more accessible in the Philippines with their new VF 5, offering a choice between buying the car with the battery or subscribing to it separately.

This guide explores the benefits of both options to help you decide the best ride for you.

Before VinFast’s arrival in the Philippines, buying a car was a rather straightforward process. However, VinFast’s innovative battery subscription program has introduced a new layer to consider when purchasing an electric vehicle.

VinFast’s approach offers customers greater purchasing flexibility, empowering them to choose the option that best suits their needs.

With the recent launch of the entry level VF 5, a compact electric SUV, the Vietnamese brand expands its range of choices for consumers.

VinFast offers a subscription model. Under this program, customers essentially lease the battery from VinFast instead of making a large upfront payment.

So, without factoring in current promotions and incentives, the VF 5 is priced at P1.191 million with the battery included. The subscription model lowers the price to just P992,000 — a significant 16 percent reduction.

The subscription model offers several benefits. Firstly, it eliminates the concern of battery degradation as VinFast takes full responsibility for the battery’s life cycle, providing peace of mind for those new to electric vehicles.

Secondly, VinFast’s battery replacement guarantee if capacity drops below 70 percent ensures optimal performance and enhances the car’s resale value.

This is particularly significant as battery replacements can cost up to 20 percent to 30 percent of the vehicle’s value, a cost that VinFast covers for its subscription customers.

For those who prefer the traditional sense of car ownership, buying the VF 5 with the battery included is the way to go.

While the initial cost is higher, this model eliminates recurring monthly fees, making it attractive to those who dislike subscription-based services. Combined with home-charging, this option can significantly reduce daily operating costs.

The price difference between buying the battery and opting for the subscription is roughly P200,000.

It’s about the same as nearly three years of battery subscription fees if you travel 1,500 km per month.

A comparable gasoline-powered car in the same segment as the VF 5 in the Philippines consumes 6.5 liters of gas per 100 km. Assuming 1,500 km of monthly travel and a gas price of P66.26 per liter, this results in a monthly fuel expense of P6,460.

In comparison, the VF 5, with a battery capacity of 37.23 kilowatt/hour and an NEDC range of 326.4 km, consumes 11.34 kWh per 100 km.

Assuming the same travel distance and a household electricity rate of P11.6/kWh, the monthly energy cost for a VF 5 purchased with battery included will come out to be merely P1,973.

VinFast’s battery subscription plan adds P5,800 to the monthly energy cost, bringing the total to P7,773.

While this might appear higher than a comparable gasoline vehicle, it’s important to remember that the subscription model provides substantial upfront savings of roughly P200,000 for eco-conscious consumers.

In the end, the choice is, of course, up to the car buyers.