Elio Buyer Financing Options Discussion

[Chris F]

Since I made my reservation in late February, I've been trying to salt away $100 a week. Given foreseen delays (there are always delays in a start-up), I'll be able to pay cash. I'm assuming sales beginning in 2ndQ of 2015, and my purchase somewhere in the mid to late summer of 2015. I haven't had a car payment since 2001 and have no interest in starting now.

 

[Debbie Bruce]

I believe there is a combination of things going on here. The email was definitely written to shine as positive a light on this question as this promotes sales but that should not be a surprise as this is a company trying to to sell a product. With that being said the truth really is that they do not know exactly how this will all end up working out as the details are not final and likely will not be finalized for some time as Elio Motors continues to work on this with various credit card issuers. The last issue is that no matter what the final deal looks like using a credit card is likely not going to be the best way to finance a vehicle as traditional financing will likely end up being significantly cheaper for those who qualify. This fact does point to the credit card deal being aimed more at people who would not qualify for traditional financing. We will just all have to watch and see how this develops over the next year.

Look at their wording, charge $25 in fuel means minimum payment of 75 with 50 minus interest applying to balance..Even at extreme low interest rate it will take more than 30 years to pay an 8k balance off. Do you think a rate lower than 22% will be given to a risk person when people with excellent credit pay high interest on credit card balances? There may be an interest free period,could even be 12 months, after that you are hurting. I agree, if it is offered it will be to the credit challenged.. Used card dealers will have more auction bought Elios than can be found at Elio retail centers.

 

[goofyone]

Since I made my reservation in late February, I've been trying to salt away $100 a week. Given foreseen delays (there are always delays in a start-up), I'll be able to pay cash. I'm assuming sales beginning in 2ndQ of 2015, and my purchase somewhere in the mid to late summer of 2015. I haven't had a car payment since 2001 and have no interest in starting now.

Very smart plan! You are basically making your payments now to avoid paying interest later.

If you can afford it paying cash is definitely the way to go, and happens to be my plan also. However for those that need a payment plan shopping around for the lowest interest rate from banks and credit unions is usually going to be the best way to go.

 

[Debbie Bruce]

Since I made my reservation in late February, I've been trying to salt away $100 a week. Given foreseen delays (there are always delays in a start-up), I'll be able to pay cash. I'm assuming sales beginning in 2ndQ of 2015, and my purchase somewhere in the mid to late summer of 2015. I haven't had a car payment since 2001 and have no interest in starting now.

I wish I could do the same. When Elio assured me I could easily buy and afford I asked my uncles opinion, after some research he went through the roof or as was mentioned in here a few times he went all three card at Elio, emails and not so pleasant phone calls. Thanks to him I have my reservation in also his help in getting financed when the time comes. Uncle M also told me after relaying this info to members in this site he was tied to railroad tracks. I try not to use his vocabulary but after reading some messages he received I understand his demeanor.

 

[goofyone]

Look at their wording, charge $25 in fuel means minimum payment of 75 with 50 minus interest applying to balance..Even at extreme low interest rate it will take more than 30 years to pay an 8k balance off. Do you think a rate lower than 22% will be given to a risk person when people with excellent credit pay high interest on credit card balances? There may be an interest free period,could even be 12 months, after that you are hurting. I agree, if it is offered it will be to the credit challenged.. Used card dealers will have more auction bought Elios than can be found at Elio retail centers.

You are correct that the plan as presented will not work but even they admit that the details are yet to be worked out. One important item they briefly mention but do not expand on is the minimum monthly payment which will really make or break this deal for most people even if they should be paying more attention to the undoubtably high interest rate which would actually cost them more over the life of the loan.

 

[goofyone]

I wish I could do the same. When Elio assured me I could easily buy and afford I asked my uncles opinion, after some research he went through the roof or as was mentioned in here a few times he went all three card at Elio, emails and not so pleasant phone calls. Thanks to him I have my reservation in also his help in getting financed when the time comes. Uncle M also told me after relaying this info to members in this site he was tied to railroad tracks. I try not to use his vocabulary but after reading some messages he received I understand his demeanor.

I actually agree with your uncle that the credit card plan will likely be the last option that should be considered and I bet many other members feel the same way once they look at it closely. I have actually agreed with your uncle on a number of occasions as he does sometimes present some good ideas. I think your uncle just sometimes come across rather strongly, tends to take other members comments too personally, and uses language that really should not be used on a public forum which all combine to turn other members off.

 

[AltoidBox]

While no official details have been released and anything I or anyone else claims about the program is speculation at this point, here's how I would hope it to be laid out.

There would be 2 separate lines of credit. One would be similar to a traditional car loan for the cost of the Elio. This line would have its own interest rate determined by the buyer's creditworthiness. The second line of credit would be the gas only credit card with a $300 limit. Really, this needn't even be a credit card, it could be a charge card that requires the balance be paid off monthly (no revolving credit, no interest rate, but a penalty for a late or nonpayment). Three times the monthly balance would be charged with 2/3rds going toward the auto loan. If that 2/3rds doesn't cover some minimum, then an additional amount would be charged to meet the minimum car payment.

I'm not sure why many people have to be so negative about this. There are ways it can be done in a fair and equitable fashion.

Sent from my Nexus 5 using Tapatalk

 

[Chris F]

While no official details have been released and anything I or anyone else claims about the program is speculation at this point, here's how I would hope it to be laid out.

There would be 2 separate lines of credit. One would be similar to a traditional car loan for the cost of the Elio. This line would have its own interest rate determined by the buyer's creditworthiness. The second line of credit would be the gas only credit card with a $300 limit. Really, this needn't even be a credit card, it could be a charge card that requires the balance be paid off monthly (no revolving credit, no interest rate, but a penalty for a late or nonpayment). Three times the monthly balance would be charged with 2/3rds going toward the auto loan. If that 2/3rds doesn't cover some minimum, then an additional amount would be charged to meet the minimum car payment.

I'm not sure why many people have to be so negative about this. There are ways it can be done in a fair and equitable fashion.

Sent from my Nexus 5 using Tapatalk

I think the issue is that people are looking at a high balance on a (possibly) high rate credit card and getting put off. Since we don't know any real details, this is all speculation. We really have no idea how economical the plan will be. Its a novel idea, but the details will determine if it makes sense for any individual buyer.

 

[Debbie Bruce]

I think the issue is that people are looking at a high balance on a (possibly) high rate credit card and getting put off. Since we don't know any real details, this is all speculation. We really have no idea how economical the plan will be. Its a novel idea, but the details will determine if it makes sense for any individual buyer.

Elio Motors Customer Service (Elio Motors)
Apr 10 19:24
Hello!
Thanks for your email.
Elio Motors will be offering many different financing options as we come to production time next year. Financing is an extremely exciting area for us. One option that we will be taking advantage of will work as follows:
1. Elio customer determines their vehicle of choice.
2. Elio customer receives a credit card that holds the balance of the vehicle’s cost ($6800+cost of options (upgrades?)+taxes+delivery fee)+$300 room of credit card for gas charges.
3. Elio customer MUST purchase gas using this card (we are working out now how this will be monitored, penalties for not using the card, minimum monthly charge requirements etc.).
4. Each gas charge will be charged to the Elio owner at 3 times their gas purchase, i.e. a $25 gas charge = $75. The difference of $50 will go towards paying down the vehicle’s balance. This $50 (less interest charges from the credit card company) will go toward paying down the balance on the vehicle.
NOTES: card can only be used for gas, there will be a minimum amount that needs to be charged monthly (amount and the “minimum amount” have not yet been determined). Elio Motors is striving towards working with a bank that accepts a wide range of credit worthiness potential customers.
We expect that due to the low price of the Elio, a great percentage of applicants will be able to finance their Elio.
Best,
The Elio Team

 

[KN16]

...SNIPPED FOR MASSIVE INANITY...

I can't even follow this thread! How many times dose the same crap have to be cut and pasted?

This is no different than holding a conversation. If you babble the same thing over and over people are going to walk away thinking you need to be fitted for a straight jacket.