VinFast is making electric cars more accessible in the Philippines with its 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 which is right for you.
Before VinFast’s arrival in the Philippines, buying a car was a rather straightforward process: You’d choose your dream car, take it for a spin, and pay upfront or in installments. However, VinFast’s innovative battery subscription program has introduced a new layer to consider when purchasing an electric vehicle (EV).
VinFast’s approach offers customers greater purchasing flexibility, empowering them to choose the option that best suits their needs. With the recent introduction of the entry-level VF 5, a compact electric SUV, the Vietnamese brand expands its range of choices for consumers.
Rent a battery long-term, worry-free
In addition to traditional car purchases where the battery is included in the price, 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 P1,191,000 with the battery included, while the subscription model lowers the price to just P992,000—a significant 16% reduction.
VinFast offers a battery subscription with tiers based on monthly driving distance (First Tier is at P5,800 for up to 1,500 km per month). Based on VinFast’s pricing in other markets, two additional tiers will likely be offered: one for distances up to 3,000 km, and another for over 3,000 km (or unlimited).
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 EVs.
Secondly, VinFast’s battery replacement guarantee if capacity drops below 70% ensures optimal performance and enhances the car’s resale value. This is particularly significant as battery replacements can cost up to 20-30% of the vehicle’\’s value, a cost that VinFast covers for its subscription customers.
Buying with battery included: The familiar way
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, about the same as nearly three years of battery subscription fees if you travel 1,500 km per month. This means after three years, the cost of ownership for both options could even out, with potential for further savings over time for those who bought the battery upfront. Of course, the exact break-even point varies depending on individual driving habits.
And beyond the financial benefits, the traditional purchasing option still includes VinFast’s comprehensive battery warranty, part of its excellent aftersales service policy. The brand’s promise ensures buyers peace of mind and protection for their investment for years to come.
Battery subscription vs gasoline vehicle
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 kWh 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.
So, what’s best for you?
Whom is the battery subscription best suited for? Based on analysis and insights from VinFast’s home market in Vietnam, it’s ideal for new EV adopters concerned about battery degradation or who prefer a smaller upfront payment. High-mileage drivers covering over 3,000 km per month, like ride-hailing, taxi, or transport services, also benefit as the subscription fee is fixed above this threshold, making it more cost-effective the more they drive.
Conversely, some drivers may be better off purchasing the car with the battery included. If you rarely drive, the monthly subscription fee can outweigh the potential savings from leasing the battery. Also, buying the car with the battery eliminates the hassle of monthly fees.
Ultimately, the best choice depends on your personal preference and driving habits. However, combined with VinFast’s market-leading after-sales policy and current incentives, the VF 5 presents a reasonably priced and safe choice for consumers who want to start their EV journey.