- Depreciation is a reality in almost all cars, but most lose about 20 percent in the first year.
- Edmunds spent $69,012 for a Fisker Ocean Extreme – and posted a scathing review.
- Adding insult to injury, Carmax appraised the vehicle at just $21,000, which represents a staggering 70 percent depreciation in just two months!
Fans of automotive startups may be disappointed by the recent flood of bad news surrounding Fisker, but for owners, it could be downright panic-inducing. Not only is their vehicle at risk of being orphaned, they’ve lost a frankly shocking amount of its value.
Concerned by this possibility, Edmunds, which bought a Fisker Ocean Extreme in January for its long-term test fleet, decided to check in on how much their new EV was worth. Two months ago, it paid $69,012 for the vehicle, which it reports was loaded with most available options.
More: Desperate Fisker Slashes Ocean Prices By Almost 40%, But Would You Buy One?
Last week, after having put a grand total of 4,220 miles (6,791 km) on it, Carmax appraised the vehicle as being worth just $21,000, per Edmunds. That’s a staggering loss of 69.6 percent of the vehicle’s value in just two months.
Now, the outlet admits that depreciation is an almost inevitable fact of vehicle ownership in this price bracket, but nearly 70 percent of a vehicle’s value disappearing in days is, to put it mildly, alarming. Most vehicles lose about 20 percent of their value in the first year of ownership.
The Ocean’s loss in value comes down to a number of factors, but the biggest one is likely Fisker’s decision to cut the price of the Ocean by almost 40 percent. Why spend around $56,000 ($70,000 minus the expected 20 percent depreciation) on a lightly used Ocean, when it can be bought new for as little $25,000?
Even after drastically cutting prices, the automaker is struggling. Edmunds flat out writes, “we cannot stress it enough: Do not buy a new Fisker Ocean,” while scathing reviews and widespread reports of technical issues have tarnished the EV’s image.
That may explain why 40,000 reservations and thousands of orders for the crossover have reportedly been canceled. It is also putting the automaker in dire straits, financially. Bailout talks with a larger OEM reportedly fell through recently, which may have also cost the company $150 million in cash from an existing investor, and has fueled rumors that bankruptcy is imminent.
