VinFast VF 5: Which Purchasing Option is Best for You?

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.

Rent A Battery, Worry-Free Long Term
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 Php  1,191,000 with the battery included, while the subscription model lowers the price to  just Php 992,000 — a significant 16% reduction! 

VinFast offers a battery subscription with tiers based on monthly driving distance (First  Tier is at Php 5,800 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). More details should be announced soon by the  brand. 

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%  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 200,000 Pesos, 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 their 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 kilometers. Assuming 1,500 km of monthly travel  and a gas price1 of Php 66.26 per liter, this results in a monthly fuel expense of 6,460 Pesos. 

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 rate2 of Php 11.6/kWh, the monthly energy cost for a VF 5  purchased with battery included will come out to be merely Php 1,973. VinFast's battery subscription plan adds Php 5,800 to the monthly energy cost, bringing  the total to Php 7,773. 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 Php 200,000 Pesos for eco-conscious consumers.

The Verdict  
So, who is the battery subscription best suited for? Based on our 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.