The Expert Podcast

This is a post that's been making the rounds on social media about a replacement of a battery on an electric vehicle. It's a Chevy Volt with 70,000 miles. I believe it was a 2015 model if I remember correctly. It shows an actual repair bill from a Chevrolet dealership for this Chevy Volt. Here's the VIN number, odometer reading 70,489, and it lists the amount for a replacement battery: $26,853.99. Adding $1,200 in labor and tax, the total comes to $29,842—rounded off, it's 30 grand to replace the battery on this vehicle.

We looked up the book value of this vehicle—it's roughly $22,000. So, the battery costs more than the used car itself. As a matter of fact, this car probably didn’t cost much more than $30,000 when it was sold new. What does this mean? Well, obviously, not all these batteries need to be replaced at 70,000 miles—some will, some won’t. Electric vehicle batteries are typically warranted for eight years or 100,000 miles. However, this one might be more than eight years old.

If it’s a 2013 or 2014 model, it could indeed be eight years or older, meaning this battery may not be covered under warranty. Also, most people drive more than 20,000 miles a year, so if you get a five-year-old vehicle at 20,000 miles, you're going to be over 100,000 miles very quickly. It’s still unknown how long these batteries will last. Some are lasting longer, but electric vehicles—pure plug-ins—haven’t been around that long. We’re just now starting to see some of these replacements.

What’s going to happen? Part of the problem is that electric vehicle batteries are not a high-turnover part, unlike tires, brakes, shocks, or other components that wear out and need replacing. Even engine components like pistons, valve guides, head gaskets, or exhaust systems are replaced regularly in gasoline vehicles. These parts are relatively inexpensive because of high demand. Even if you need a new engine for a vehicle, I can’t imagine any new vehicle sold in the last 10 years—unless it’s a very exotic Ferrari or Porsche—that would cost more than $10,000 to replace a whole engine. That’s the most expensive part of a gasoline vehicle.

Here you are with a battery that costs $30,000. Why? One reason is that they don’t produce a lot of extra batteries; engines, on the other hand, are manufactured regularly for vehicles. Another reason is the labor cost. The battery is an integral component of the vehicle, making it costly to replace. Again, this may just be an exception to the rule. There could be more to this story than meets the eye, but it’s not the first time we’ve seen electric vehicle battery costs appear so expensive.

Tell us what your thoughts are in the comments. Is this something that’s going to become common? Do you have to basically get rid of your car when the battery wears out—like you do with your cell phone? Or will warranties step in to handle this issue?