Leasing an electric vehicle (EV) in Singapore is an excellent option for businesses and individuals looking to embrace sustainability without the full commitment of ownership. But there’s a critical element to consider before signing that lease agreement: mileage limits. These limits can directly impact your lease costs and overall experience, so understanding them is essential.
Let’s break it down, step by step, so you can make informed decisions when leasing an EV in Singapore.
What Are Mileage Limits in EV Lease Agreements?
Mileage limits in a lease agreement define how far you can drive the vehicle annually without incurring extra charges. Typically, the limits range between 16,000 and 25,000 kilometres per year (around 10,000–15,000 miles).
Go beyond the limit, and you’ll face a penalty—usually a per-kilometre fee, which adds up quickly. For example, a fee of $0.20 per kilometre might not seem much at first, but driving 5,000 km over the limit means an unexpected $1,000 bill at the end of your lease.
This is why it’s crucial to estimate your driving habits accurately before committing to a lease.
Why Do EV Lease Mileage Limits Exist?
Mileage limits are not random. They exist for practical reasons, including:
Preserving Resale Value: EV leasing companies need to ensure the EV remains marketable at the end of the lease. Higher mileage often means more wear and tear, lowering the resale value.
Managing Maintenance Costs: Increased mileage often leads to more frequent maintenance, which could become costly for lease companies.
How Can I Choose the Right Mileage Limit?
When deciding on a mileage allowance, ask yourself these key questions:
How much do I drive daily? Consider your daily commute, weekend activities, and occasional long drives. If you’re running a delivery business, this becomes even more crucial.
Do I plan to drive more than usual this year? Relocations, extended holidays, or new business ventures could increase your driving distance.
What happens if I exceed the limit? Familiarise yourself with the penalties by reading the fine print in your lease agreement.
Can I Negotiate a Higher Mileage Allowance?
Yes, in many cases, you can negotiate a higher mileage limit during the lease agreement stage. This might increase your monthly lease cost slightly but could save you from hefty penalties later.
For businesses relying on EVs like the BYD T3 or DFSK EC35 for deliveries, a higher mileage allowance could be more cost-effective than paying penalties. These vehicles, with ranges up to 331 km and spacious cargo areas, are perfect for high-mileage operations in Singapore’s urban landscape.
Latest Trends: Why Mileage Matters More for EVs in Singapore
With Singapore’s push for zero-emission vehicles and growing infrastructure for EVs, leasing has become increasingly attractive. However, mileage limits are especially critical for EVs due to factors like:
Battery Degradation: Excessive mileage can accelerate wear on the battery, reducing its long-term performance.
Usage Monitoring: Advanced telematics systems in EVs mean lease companies can track mileage more accurately, leaving little room for error.
Tips for Managing Mileage Wisely
To stay within your mileage limit, consider these strategies:
Plan Efficient Routes: Use apps or onboard EV navigation systems to find shorter, more efficient routes.
Combine Trips: Instead of taking multiple short trips, consolidate errands to reduce mileage.
Track Mileage Regularly: Keep an eye on your odometer or use apps to track your driving distance throughout the year.
Opt for Larger EVs if Needed: If you anticipate high mileage, consider leasing models with extended ranges and capacities, like the Golden Dragon XML5036 or SRM T3.
Key Features of Popular Electric Vans for Business in Singapore
When selecting an electric van, you should consider payload capacity, cargo space, range, and charging times. Here's a quick rundown of popular models suited for different business needs:
BYD T3
Max Payload: 780 kg
Cargo Volume: 3,800 L
Dimensions (L x W x H): 4,460 x 1,720 x 1,875 mm
Range: Up to 300 km
Battery Capacity: 50.3 kWh
Charge Time (0 - 100%): AC 7.6 hours / DC 1.3 hours
DFSK EC35
Max Payload: 1,100 kg
Cargo Volume: 4,800 L
Dimensions (L x W x H): 4,500 x 1,680 x 1,985 mm
Range: Up to 331 km
Battery Capacity: 38.7 kWh
Charge Time (0 - 100%): AC 5.9 hours / DC 1.0 hour
Golden Dragon XML5036
Max Payload: 1,730 kg
Cargo Volume: 6,500 L
Dimensions (L x W x H): 5,030 x 1,700 x 1,980 mm
Range: Up to 250 km
Battery Capacity: 50.2 kWh
Charge Time (0 - 100%): AC 7.6 hours / DC 1.3 hours
DFSK EC31
Max Payload: 1,280 kg
Cargo Volume: 3,500 L
Dimensions (L x W x H): 4,730 x 1,635 x 1,985 mm
Range: Up to 280 km
Battery Capacity: 38.7 kWh
Charge Time (0 - 100%): AC 5.9 hours / DC 1.0 hour
SRM T3
Max Payload: 1,625 kg
Cargo Volume: 3,500 L
Dimensions (L x W x H): 5,190 x 1,770 x 1,995 mm
Range: Up to 300 km
Battery Capacity: 53.6 kWh
Charge Time (0 - 100%): AC 8.1 hours / DC 1.3 hours
Hidden Costs: The Importance of Reviewing Lease Agreements
Always read your lease agreement thoroughly. Beyond mileage penalties, look for clauses about:
Maintenance Responsibilities: Who covers routine servicing?
Battery Health Standards: What happens if battery performance degrades?
Early Termination Fees: Can you end the lease early if needed?
These details can make or break your leasing experience.
Why Evfy Makes EV Leasing Easier
Worried about mileage and penalties? Evfy, a sustainable delivery service in Singapore, offers solutions for businesses that prioritise efficiency and cost savings.
Evfy’s 100% electric fleet is ideal for eco-conscious operations. By optimising delivery routes and leveraging advanced technology, Evfy helps reduce mileage wastage. Plus, their expertise ensures you get the most out of your leased EV.
Take Charge of Your EV Lease Today
Leasing an EV is more than just picking the right car—it’s about understanding mileage limits and planning wisely. By choosing the right model, negotiating allowances, and monitoring your usage, you can avoid penalties and make the most of your lease.
Ready to simplify your business operations with zero-emission EVs? Explore Evfy’s sustainable solutions today and drive into a greener future!