Financing Elio Motors Development And Production

[goofyone]

The one loan that I have heard referenced is that there is a collateralized loan against the equipment being sold at the former GM plant... I don't however have any idea of the figures.

By looking at information from the August 2013 Caddo Commission meeting it would appear that the equipment price is about $9.75 million and EM should be currently paying $175,000 per month on this equipment through approximately January 2016, if payment schedule did not change.

$3 million down payment paid six months before August 2013 meeting
$2.2 million for equipment was due September 4, 2013 ($2.2 for equipment + $7.5 purchase price for the property)
$4.55 million 175K per month x 26 months is (3 months after September is December 2013 through January 2016 which is 30 months after August 2013 meeting)
=$9.75 million total equipment cost to EM

She also inquired about the value of the equipment that was sold to Elio Motors. Mr. Rasher said that the value was $26 million, and it was all sold to Elio Motors. Elio Motors paid $3 million six months ago; the next payment that is due is the $2.2 million payment for equipment. Three months later, a payment of approximately $175,000 per month is to be paid. The final payment should be made approximately 30 months from now.
.....
Mr. Epperson asked Mr. Rasher about the deadlines Elio Motors is looking at regarding Racer Trust. Mr. Rasher stated that Elio Motors has to have a payment of $9.7 million on or before September 4th .

*Mr. Rashner is Mr. Bruce Rasher, Redevelopment Manager for The RACER Trust
http://la-caddoparish.civicplus.com/AgendaCenter/ViewFile/Minutes/08022013-145

This document is an informative read as it gives an overview of the discussion which lead to the Caddo Parish Commission funding the purchase of the Shreveport GM plant

 

[RUCRAYZE]

I am very excited about the elio, and my girl friend has a 100 buck all in reservation. We are going to loretto pa on march the 11th to see a prototype

This vehicle has the opportunity to turn the car industry on its head.

with such a low cost to buy, it can change the used car business a lot..

used cars are highly overpriced, elio can stop that

much of the average people in the US are hurting fiancially. elio will open a big chunk of used car buyers, to the chance of buying a brand new vehicle

I wonder why elio hasnt raised more money by pre selling vehicles. buy a brand new vehicle for 5800 bucks be put at the front of the line......

In any case I HOPE the elio is a dramatic success....

Welcome from THE Sunshine State, your questions and observations ring true with many of us. Hang around, take a look at topics that interest you, and you will see that your concerns are ours too.- Enjoy the ride!!

 

[Rickb]

The one loan that I have heard referenced is that there is a collateralized loan against the equipment being sold at the former GM plant... I don't however have any idea of the figures.

Since EM hasn't sold the excess equipment to pay off their liens on the equipment purchase they are still apparently making equipment payments and obviously no fund balance which was to be used for startup of the hiring process. The Caddo Parrish Commisioners are perhaps more worried about their upfront $7.5 Million public money investment than we are about private individual non-refundable pre-order reservations.

Elio promised us a vehicle and promised Caddo Parrish Commissioners 1500 jobs. I hope it works out for everybody involved.

 

[Reid3400]

I found the term "nonrefundable deposit" a little confusing, so I went and explored what the courts have handed down in related matters. They hold that a nonrefundable deposit is simply a fee. These fees are for registration as a potential buyer. Very similar to an entry fee at an auction or flee market. There are no legal rights conveyed with this fee. We may get an option at some future date to purchase a product at a yet to be determined price. In the meantime, enjoy the dream?

 

[JEBar]

I found the term "nonrefundable deposit" a little confusing, so I went and explored what the courts have handed down in related matters. They hold that a nonrefundable deposit is simply a fee. These fees are for registration as a potential buyer. Very similar to an entry fee at an auction or flee market. There are no legal rights conveyed with this fee. We may get an option at some future date to purchase a product at a yet to be determined price. In the meantime, enjoy the dream?

that pretty much echos what has been stated here many, many times ..... most everyone understands it, a few (very few) don't appear to want to understand it

 

[goofyone]

that pretty much echos what has been stated here many, many times ..... most everyone understands it, a few (very few) don't appear to want to understand it

I do wonder what percentage of people actually even bothered to read through the reservation agreement before putting down their money. My guess is that many did not read it or only skimmed over it.

 

[JEBar]

I do wonder what percentage of people actually even bothered to read through the reservation agreement before putting down their money. My guess is that many did not read it or only skimmed over it.

undoubtedly there have been and probably will be more who sign without reading .... those who didn't/don't get no sympathy from me

 

[RUCRAYZE]

I do wonder what percentage of people actually even bothered to read through the reservation agreement before putting down their money. My guess is that many did not read it or only skimmed over it.

True, but I know each us has never reads all the "fine print", I'd still be waiting before I downloaded a program, financed a car, open a checking, store, credit card,
Dr.(M.D.) release form(s), phone contracts, cable, phones etc. we've come to the point we just check it off, and move on. It's only when you get "smacked upside your head" do you come to realize what you committed yourself to . Same here, some think they signed an open information accountable contract, beholding to them, others think they own a stake in EM and are entitled to (fill in the blank) It's been, for many so long between signing and actually seeing the product,their reality gets contorted to meet their expectations.
I think about a third of the nays are those who think what they've committed to, find out they ain't even close

 

[BlioKart]

I do wonder what percentage of people actually even bothered to read through the reservation agreement before putting down their money. My guess is that many did not read it or only skimmed over it.

I actually did read it for a change

 

[Chris F]

I actually did read it for a change

I read it also (but I have to read that kind of stuff all day).