Sometimes an incredibly lucrative deal can be too good to be true.
On June 18, Fisker, Inc., an electric vehicle startup based in Manhattan Beach, California, filed for Chapter 11 bankruptcy after a turbulent pattern of events involving several quality control issues, recalls, and a disastrous review by YouTube’s leading tech authority affected the company’s sole offering: the Ocean all-electric SUV.
As the company continues to work to find creative solutions to pay off its creditors, a landmark deal is in the works to equip New York City rideshare drivers with new electric vehicles obtained at prices that are a fraction of their manufacturer’s suggested retail price. But, like all things obtained at fire sale prices, these vehicles come with a big asterisk that current owners are learning to accept.
Related: How Fisker fell from grace
As part of its bankruptcy proceedings, Fisker Inc. is set to sell its remaining inventory of Ocean electric SUVs. American Lease, a New York City-based company specializing in renting and leasing vehicles for ride-share drivers, has agreed to buy the entire batch of 3,321 vehicles for a total of $46.3 million, pending court approval.
The deal was initially set for just 2,100 vehicles, but court records show the new outsized deal was made because the electric vehicle startup will not be able to fund payroll and taxes if the deal is not finalized by July 12.
Of the 3,321 vehicles to be transferred to the New York-based ride-sharing rental company, 2,711 of the Oceans are described as being in “reasonably good working condition” and with a “manufacturer’s certificate of origin.” These vehicles fetched the highest price, selling for $16,500 apiece.
Additionally, 351 vehicles that were already titled will sell for just $3,200 each, and other EVs that have “mechanical, cosmetic, or other damage or defects requiring repair” (estimated at more than $5,000) have been sold for rock-bottom prices, as low as $2,500.
American Lease, the New York City-based company taking advantage of these clearance prices, is a company that specializes in providing vehicles to rideshare drivers if they don't currently own a vehicle that fits the requirements set by services like Uber. (Uber) or Lyft (LYFT) According to its website, the company with offices in Queens, the Bronx and Brooklyn is an official Uber partner and offers rideshare drivers the chance to drive new and used Toyota Camry, Highlander or Mercedes Metris SUVs for as little as $350 per month.
However, the rigorous demands of driving in New York City can lead to a lot of wear and tear and mechanical abuse, especially for ride-share vehicles, limousines, for-hire vehicles, and TLC-registered taxis. This type of environment demands that operators and drivers have vehicles that are not only easy to repair, but also have abundant spare parts.
Unfortunately, lack of spare parts and long wait times for service were problems faced by Fisker owners before the company filed for bankruptcy.
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In a report first published by Inside EVs In June, former Fisker employees revealed that the company had no plans to provide or stock spare parts to repair Ocean electric vehicles. Due to the lack of availability of spare parts, Fisker technicians and employees were forced to disassemble new vehicles and smuggle in various parts in suitcases.
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On a positive note, Fisker's current owners remain fairly optimistic. A group of owners, including Jose De Bardi, have created a non-profit organization called Fisker Owners Associationan owners club dedicated to finding resources to keep Ocean SUVs on the road for as long as possible, including vehicle financing issues, Fisker app support, and finding auto parts.
“We have the feeling that we are going to get some kind of good result,” said De Bardi. With cable.
Currently, the Fisker Owners Association website offers links to dealers in different areas of the US with service departments. Additionally, the subreddit r/FISKER_MAINTENANCE Reddit also provides the Fisker community with solutions to errors reported by owners.
The fine print of the agreement between Fisker and American Lease notes that Fisker will not honor any vehicle warranties and has no obligation to provide repairs, upgrades or maintenance. However, Fisker is willing to provide the New York-based company with “all relevant source code” and “existing development work” for Ocean’s software, which will allow it to make any necessary updates to its vehicles.
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