Borrow $240 Mil, Or Borrow Alot Less And Start Out Slow?

[WilliamH]

Not that any of this makes any difference to Elio Motors at the moment. That would be a very, low income to afford virtually any private vehicle. I work with people who are frequently (though not exclusively) at the lower end of the socioeconomic scale, and I've seen vehicle ownership at that income level more a path to the bottom than to the top. Often times things like education and skill development for a desired job market need to be addressed before incurring the debt and ongoing costs and responsibilities of private vehicle ownership. That said, I have also seen people who improved their marketability, and a vehicle allowed them to travel to areas where there were significantly better paying jobs which negated the additional cost of private transportation, child care, etc when they no longer qualified for TANF, more complex schedules to accomplish what they need to maintain their new economic level, etc. Also, the difference between $6800 and $9800 is 36% (I would just go with MSRP as point for discussion since taxes and delivery will vary quite a bit) but I don't have to rethink that since Elio Motors will set their vehicles price, not me.

Guess we are looking at that differently.
I viewed the percentage as 3000/6800=.44+ which would make it a 44%+ cost increase over original base.
It's actually a lot easier to marginalize the effect of a price increase when you are at the upper end of the socioeconomic scale than when you are at the lower end of the socioeconomic scale. No to mention the sense of pride that someone gets from being able to have a new reliable car that they earned for them self. That's something that can't be measured in social programs.

 

[John Painter]

Guess we are looking at that differently.
I viewed the percentage as 3000/6800=.44+ which would make it a 44%+ cost increase over original base.
It's actually a lot easier to marginalize the effect of a price increase when you are at the upper end of the socioeconomic scale than when you are at the lower end of the socioeconomic scale. No to mention the sense of pride that someone gets from being able to have a new reliable car that they earned for them self. That's something that can't be measured in social programs.

I'd agree with the 44%. No doubt there can be some self-esteem gained from purchasing a new vehicle, house, or anything. I think the challenge, at lower income levels where people get stuck due to skill level, is just how many seemingly innocuous things can upset a very delicate financial situation for people. For example I see a lot of people get in trouble when they get a car they can barely afford and then family and friends come out of the woodwork hitting them up for rides, but do not reliably contribute to fuel or wear and tear - but the car payment bill comes regularly.

 

[WilliamH]

I'd agree with the 44%. No doubt there can be some self-esteem gained from purchasing a new vehicle, house, or anything. I think the challenge, at lower income levels where people get stuck due to skill level, is just how many seemingly innocuous things can upset a very delicate financial situation for people. For example I see a lot of people get in trouble when they get a car they can barely afford and then family and friends come out of the woodwork hitting them up for rides, but do not reliably contribute to fuel or wear and tear - but the car payment bill comes regularly.

Yes, that's the great thing about a two seat tandem. It does tend to discourage the free loaders(and their spawn).
That's also the great thing about the credit card method of payment. It tends to keep your eye on the ball.

 

[Hotscoots]

It's not inconceivable that Elio will pivot their strategy . Maybe raising just enough money by selling 10-40,000 units will energize :
- Consumer interest in the vehicle
- Reluctant investors
- Expedite Govt loan(s)