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I'm about to bite the bullet and spend $109 on a DeWalt 18 volt battery. However I see that I can get a new 20 volt impact driver , two new batteries and a charger for $99.00. The drawback is that the batteries are only 1.3 amp hr. Has anyone used the 1.3 amp hr batteries and if so what is the downside.

DEWALT ATOMIC 20-Volt MAX Cordless Brushless Compact 1/4 in. Impact Driver, (2) 20-Volt 1.3Ah Batteries, Charger & Bag DCF809C2 (homedepot.com)
Another option is the Ridgid 18volt with one 2 amp hr battery for the same price BUT the battery and tool are guaranteed for life.
RIDGID 18V Cordless 1/4 in. Impact Driver Kit with 2.0 Ah Battery and Charger R86002K (homedepot.com)
Last year, I bought the DeWalt 20v adapter with (2) L-ion batteries (2.0 amp), instead of replacing my 18v Nicads. One of the batteries wouldn’t hold a charge and the second failed to charge at all. I returned the package and Rockler immediately shipped me a new set, without question. After charging both batteries, I used them with no charging problems, but the usage life was terrible. The battery meter was a plus feature, however it didn’t take long for the 4 lights to decrease, with a deck build. After about 3 months, 1 battery died completely. At that point, the return window was closed and I was told to contact DeWalt for a warranty replacement. What a nightmare with phone prompts, line holds and false promises and out of pocket return shipping costs. If you do decide to chance a purchase of the 20v L-ions, beware of the 18v items they cannot be used with - the DeWalt radio for one, and the work light annoyingly pulsates the beam every second. Truthfully, I wasted money on “pure junk” and will never buy another DeWalt product again. Since my dilemma, I’ve switched to Rigid and have had great luck with their battery tools. But I will say that “corded” is the only way to go for larger projects.
 

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I went with the 20 volt and hope I don't have the same problems that you had. I'm with you on corded tools. I see absolutely no use for a battery tool if electricity is readily available. The only reason I even considered a battery drill and a driver is that it takes longer to get out an extension cord then to drill or drive a screw. Drills are used in out of the way places and they are typically only used for less than a minute at a time. A saw however is typically used for multiple cuts and seldom used when working on a ladder or a hundred feet from the back door. I picked up a corded Dewalt Saturday at a garage sale for $1.00. It needed a new cord but even if I had to buy one it would have been a lot less than $109.00. I am pretty sure that this new $1.00 drill be around for a lot longer than I am. And it will never die in the middle of a job.
Good luck with the 20 volt setup. I noticed with mine, that if the batteries were kept installed in the tool for any length of time, they would run flat. I experimented with removing them after final use to see if that made a difference. Low & behold, I tried the stored batteries a month later and each still had full power. It's a mind-boggler as to what would drain them, if stored while still installed - but my technique worked. Also, as with ANY new L-ion or Nicad battery, the partially-charged battery must be completely drained and recharged to full state, before use. Otherwise, an inadequate charge memory will be stored. I was told this by a tech at a local Interstate Battery shop. I later ran a test with a laptop install of a new L-ion battery, and he was absolutely correct.
 
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