Bank Loan Rates For Buying Your Elio

[Cache Man]

I was wondering if anyone else has contacted their bank/Credit Union to see about a loan for their Elio? I contacted a local credit union and they said because the "car" is so new and there isn't an established resale value and the loan interest rate will be higher. This is because if they need to repo the car they don't know if they can recover their money or how fast it will sell. The estimated rate is about 9.0% for the new Elio "car" but for the "autocycle" (it may be classified as a motorcycle/RV) the rates are higher. They hadn't heard the term "autocycle" yet. They said they do not know for sure what the rate will be until it is out on the market. I may have to pull the "Loyal customer" to influence the rate!

- Are most people planning on paying cash?
- Or for those planning on financing their Elios, have you looked into this already? What are you being told?
- Any more info on the Elio financing program?

 

[Norahsbed]

I was wondering if anyone else has contacted their bank/Credit Union to see about a loan for their Elio? I contacted a local credit union and they said because the "car" is so new and there isn't an established resale value and the loan interest rate will be higher. This is because if they need to repo the car they don't know if they can recover their money or how fast it will sell. The estimated rate is about 9.0% for the new Elio "car" but for the "autocycle" (it may be classified as a motorcycle/RV) the rates are higher. They hadn't heard the term "autocycle" yet. They said they do not know for sure what the rate will be until it is out on the market. I may have to pull the "Loyal customer" to influence the rate!

- Are most people planning on paying cash?
- Or for those planning on financing their Elios, have you looked into this already? What are you being told?
- Any more info on the Elio financing program?

We'll be paying cash up front. Keep in mind you can usually get a deal on interest rates if you put down 20% or more,( unless your credit score really stinks ). Which if your "All in" at $1000 and $500 bonus that's 20% of a $7500 vehicle. That should cover a basic model with tax in most states.

 

[NSTG8R]

Paying cash myself. But with a little forethought, a buyer could do the "put away 10% of your income" route, and save some significant interest on the rest of the loan amount...if any was required between now and receiving your Elio.

 

[Cache Man]

At 2.99% on $8,000, it is about $622.84 in interest if you make your payments monthly for 5 years. This is approximately $10.38/month in interest over 60 months. This is cheap money.

Not every Elio owner will be able to pay cash so this may be a concern for new buyers with little credit history which will have a higher interest rate or those who have had difficulties in life. My children will have to get loans and it will be something for them to consider.

Saving money and living within your means is always important...

I keep telling my kids to stop eating so much to save money... but they don't listen!

 

[Norahsbed]

Paying cash myself. But with a little forethought, a buyer could do the "put away 10% of your income" route, and save some significant interest on the rest of the loan amount...if any was required between now and receiving your Elio.

Or start making, what you think your payment will be, (on a 36 month loan) and put it into a savings account. You'll be 10-12 months ahead in payments (assuming a Late 2015 delivery).

If you can't squeeze the payment into your budget now, what makes you think you can a year from now? Now is the time to set up a budget for monthly expenses and stick to it. You'd be surprised how much discretionary income you have, when you start to track, where your money goes.

 

[Norahsbed]

At 2.99% on $8,000, it is about $622.84 in interest if you make your payments monthly for 5 years. This is approximately $10.38/month in interest over 60 months. This is cheap money.

Not every Elio owner will be able to pay cash so this may be a concern for new buyers with little credit history which will have a higher interest rate or those who have had difficulties in life. My children will have to get loans and it will be something for them to consider.

Saving money and living within your means is always important...

I keep telling my kids to stop eating so much to save money... but they don't listen!

Only problem with that senario is, financial advisors ( worth their fee) will tell you not to take out a car loan for more than 36 months. If you have to drag it out longer, then you can't afford the vehicle, even with lower interest rates. Your vehicle will deprecate faster than you can pay it down on long term loans. That will put you upside down on loan to vehicle value. Want to trade that car in after 2 or 3 years, guess what, you owe more than its trade in or resale value. It will also result in higher insurance rates, during the loan period of the vehicle. Insurance companies are the ones who have to make up the difference between what you owe and what the car is worth, if it gets totaled, while it has a lean against it.

 

[Folks]

The principle of putting the money in the bank rather than paying interest to a bank is the philosophy that generated my ability to pay cash for an Elio today. So I say much as Norah says but go even farther. Deny yourself the car until you can pay cash. Which is more important, the car or the discipline to save money?

PS the math is easier too! LOL

 

[Cache Man]

I agree. Isn't Elio advertising the autocycle as a first time buyer car? This financial information should be discussed with new buyers, and hopeful as parents of "First Time Buyers" we should help guide them though this maze that many get caught in... Debt.

 

[Puna bob]

Of course if you have equity in a home I would get a HELOC (home equity line of credit)
rather than a auto loan because the interest is tax deductible. But for $7k I'll pay cash.

 

[tazairforce]

Paying cash myself. But with a little forethought, a buyer could do the "put away 10% of your income" route, and save some significant interest on the rest of the loan amount...if any was required between now and receiving your Elio.

'But with a little forethought'
Z showed us it could be done. As she was on a very limited budget, she managed to save for her Elio.
I followed her lead, when I first, went in at 1k, and opened a 'Elio savings account' the next day with payroll deduct. Haven't even missed it.
Z, we miss your steadying hand.
Just 'Pay It Farword', why wait until you get your Elio, start saving something now. 1 to 2 percent want amount to much, on a passbook, but for every $ you save now will make a big difference when they charge 9 to 20 percent on finance later.
The money we save now, will still be there regardless of what happens.
We All can cut back on things we think we need, such as;
1) Junk food, cook at home
2) Recreational driving, tho gas is down it ain't Free
3) Recreational shopping, stay out of Wal-Mart, don't buy stuff you don't need.
4) Food, buy chicken, not Rib-Eye @15.99 a #, price today at Ingles, I quit, and I've got the DTs already
5) there are many other things we can save on
Sell stuff you don't need and put that in your savings account.
Anybody need a HangGlider, used very little, aged.lol