The Fisker Flexible Lease is a great option to get your hands on the all-electric Fisker Ocean SUV, but you’re going to have to wait a while.
Henrik Fisker shared new details about the timing of the Fisker Flexible Lease at a global industry auto conference yesterday.
Since it was first announced at the Los Angeles Auto Show, we think the Fisker Flexee Lease program is going to revolutionize the vehicle lease product.
It will change the way consumers get behind the wheel of new cars. Henrik said that the company has a lot of interest in the Fisker Flexee Lease Program. However, we will have to wait a little while for the innovative lease program to roll out.
What is the Fisker Flexible Lease?
The Fisker Flexee Lease Program is a cost effective way to get behind the wheel of a Fisker Ocean. It’s a much different approach to the “ownership” experience than paying cash or financing your Fisker Ocean. This option breaks the mould from the traditional vehicle lease program.
It does away with long-term commitments. You no longer have to sign up for a 36-month term lease. The Flexible Lease program is like signing up for a subscription service, with the caveat of a one-time $2,999 initiation and activation fee. However, all vehicle lease programs make you put down cash to drive off.
At Fisker, the Flexible Lease option will start at $379/month with the Ocean Sport. That will give you the ability to drive 30,000 miles/year. You no longer need to worry about being charged if you exceed the standard annual 15,000 mileage allowance. Below, is a comparison chart of the Fisker Flexible Lease vs. the traditional lease.
Almost most car maker websites allows you to configure the price of a lease option. For example, leasing a Tesla Model Y with $3,500 down and 15,000 annual miles for a 36-month term is $683/month excluding the acquisition fee. Granted, that vehicle is nearly twice as expensive, but so is the payment and you get half the mileage allowance.
|Fisker Flexible Lease||Traditional Lease|
|Base: $379 Monthly (Fisker Ocean SUV)||Base: ~$775 Monthly (EV Crossover)|
|$2,999 Drive Off||~$3,500 Drive Off|
|No Fixed Term (Flexible)||36 Month Term (Long-Term Commitment)|
|30,000 Miles/Year||15,000 Miles/Year|
Leasing vs. Purchasing a Fisker Ocean
The innovative Flexee Lease option lowers your monthly payments compared to getting a car loan. However, you never really own the vehicle. That means you have payments for as long as you lease the Fisker Ocean, but you don’t need to worry about maintenance.
Purchasing the Fisker Ocean Sport with a 72-month auto loan at a rate of 4.44% would cost you $594/month. The real cost of the $37,499 Fisker Ocean Sport comes out to roughly $42,750 including interest from the loan. Over the same 72-month period, if you used the Fisker Flexible Lease program, you would spend $30,287 including the initiation and activation fee. There is a significant savings with the lease option, nearly $12,500 over a 6-year period.
Also, it depends on when you need your Fisker Ocean. Purchasing a Fisker Ocean with cash or by financing it with an auto loan could be a quicker option for you. In the near-term, Fisker is likely to sell the Fisker Ocean to cash and finance buyers before it gets people into a lease. (Same thing goes with someone wanting to buy an Ocean Extreme vs. Sport. Right now, Extremes take priority over other trims.) Plain and simple, it has a lot to do with the timing of the program roll out. Let us explain.
Rolling out the Fisker Flexible Lease Program
Fisker said that the Flexible Lease Program is coming. However, it won’t be until the second half of 2023. The company will start by deploying the lease program in select markets. Fisker will strategically roll out the program in certain cities to optimize it before expanding further. Henrik said he thinks the company will roll the program out slowly, build it up over time, and decide when to ramp it up to full speed.
At this time, we do not know which markets the company will launch. However, it may choose cities where it plans to have a physical presence. Logistically, that seems to make the most sense. For example, in the United States, we could see the program roll out first in Los Angeles, Miami, New York, and Chicago where it has Experience Centers.
One thing is for certain, Fisker has a lot of interest in the program, but right now cash is king. That means the company will need to sell some Fisker Ocean SUVs to help fund this lease program. That would be our preferred option to fund the program. Alternatively, the company could sell stock or raise debt to kick start the program. Realistically, it will take the company 2 to 3 years to scale this program throughout the world as it will be a cash-intensive business.
Strategic Importance of Fisker Flexible Lease Program
Henrik believes the Flexible Lease program will be a huge long-term strategic advantage for the company. Fisker will own each vehicle that it leases. That means over time, the company will build out a massive fleet of leased vehicles. Fisker’s fleet will be larger than any competitor, but it comes at a cost for the company. They need to purchase or finance each vehicle themselves to add it to the Flexee Lease Program.
Ultimately, Henrik Fisker believes the Flexible Lease could be a vast majority of how the company deploys its vehicles. Henrik said it could eventually go beyond 80%. The Fisker PEAR will also be eligible for the Flexible Lease program. This program plays right into Fisker’s unique business model. Henrik believes they’re going to surprise a lot of people with recurring revenue from subscription services and optional packages.
Previously, Fisker has said the lifespan of each Fisker Ocean in the Flexible Lease Program is 12 years. Each time Fisker turns over a vehicle in the lease program, the company will refresh it before leasing it to the next customer. Each new lessee can choose to buy the same subscription services and optional packages the last lessee may have purchased. That’s how the company will generate a lot of recurring revenue and cash flow.
Questions About the Fisker Flexible Lease Program
This morning, we received a question about leasing. Also, other reservation holders have submitted questions about the program through the comments of various articles. We’ve covered most of their questions in the article above. However, there still are some unanswered questions. In fact, there are quite a few. For example, how many Flexee Leases for the Ocean Sport will the company honor at the $379/month price? Will it be just the first 40,000 reservation holders or those that get into the Flexible Lease Program in 2023? Will the Flexible Lease Program support the Ultra or Extreme models? If so, what will the monthly price be? We could probably come up with 20 questions, but we’ll save that for another article.
Hear Henrik Talk About the Fisker Flexible Lease
Henrik Fisker attended the Deutsche Bank Global Auto Industry Conference yesterday. He briefly talked about the Fisker Flexible Lease program. He shared new details we haven’t heard before. In this clip, you’ll get a good idea of how strategically important this lease program is to the company.
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