Elio Buyer Financing Options Discussion

[HonestTex]

I plan on paying cash up front for mine as well. But if I did go the card route, I 'd use it to fill all my cars and gas cans for lawnmowers, ect.. pay it off quicker and skip any interest.

 

[Debbie Bruce]

It's only expensive if you carry a balance They claim the card fee will be low. The almost 100% shouldn't hurt it would be a secured card you wouldn't have the title until you've paid it off.

We can appreciate your concern and until our credit card/ gas card program is finalize, we are not marketing this program on our website. I understand this program has been mentioned in articles and interviews, but until it is finalized we can not offer it. With any such program, an individual will be required to register and qualify for the program.
As for the reservations, we are offering a refundable reservation to everyone, as well as a non-refundable option. So if the person making the reservation determines that they can not afford a non-refundable reservation, they will be still be able to place a refundable reservation that would still entitle them to reservation for our vehicle within the first year of production. We have clearly stated in the reservation documentation that this is a risk and does not guarantee an individual a vehicle.
Best Regards,
The Elio Team

 

[Debbie Bruce]

The cost of the car is the card's balance. Secured doesn't matter when it comes to credit utilization. It's simple balance divided by limit.

We can appreciate your concern and until our credit card/ gas card program is finalize, we are not marketing this program on our website. I understand this program has been mentioned in articles and interviews, but until it is finalized we can not offer it. With any such program, an individual will be required to register and qualify for the program.
As for the reservations, we are offering a refundable reservation to everyone, as well as a non-refundable option. So if the person making the reservation determines that they can not afford a non-refundable reservation, they will be still be able to place a refundable reservation that would still entitle them to reservation for our vehicle within the first year of production. We have clearly stated in the reservation documentation that this is a risk and does not guarantee an individual a vehicle.
Best Regards,
The Elio Team

 

[Debbie Bruce]

The cost of the car is the card's balance. Secured doesn't matter when it comes to credit utilization. It's simple balance divided by limit.

I tend to believe what my uncle states. The credit card option will be for those who have low ficco scores or just plain terrible credit. For them a newly issused card showing a basically maxed out limit should not hurt them since they can't get credit anyway. Now if they pay as agreed down the road as the card shows less and less of a balance it could help after a few years to establish a respectable credit score. Any time you get a new credit card you points go down , if you max it out your score plumits. Credit cards are not intended to buy stuff one normally can't afford, those who charge and do not pay balance in full each billing period drop points every month.The interest will be very high for those who buy their Elio with the card plan, that is if it really is to be offered. After reading this below I have to agree with my uncle. Nothing more than sales talk to get reservations
We can appreciate your concern and until our credit card/ gas card program is finalize, we are not marketing this program on our website. I understand this program has been mentioned in articles and interviews, but until it is finalized we can not offer it. With any such program, an individual will be required to register and qualify for the program.
As for the reservations, we are offering a refundable reservation to everyone, as well as a non-refundable option. So if the person making the reservation determines that they can not afford a non-refundable reservation, they will be still be able to place a refundable reservation that would still entitle them to reservation for our vehicle within the first year of production. We have clearly stated in the reservation documentation that this is a risk and does not guarantee an individual a vehicle.
Best Regards,
The Elio Team

 

[Chris F]

There is a lot of speculation here, but no facts. No one has any idea how the program will work. You are assuming that the entire purchase price will be carried as a balance on the card. You are assuming interest rates, FICO scores, etc. Why don't we wait until there are some facts?

Chris F

 

[Debbie Bruce]

The cost of the car is the card's balance. Secured doesn't matter when it comes to credit utilization. It's simple balance divided by limit.

For those of you that claim fuel card will not come maxed out with interest to be paid check out what Elio told me below. The card will be issued with the full purchase price on it with aa limit of 300 over that .. If your elio cost 8k your card will have an 8300 limit, basically maxed out. Read below, Elio states you will be charged interest monthly. This is the reason my uncle had his battle with Elio and a few in here.

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

 

[Debbie Bruce]

There is a lot of speculation here, but no facts. No one has any idea how the program will work. You are assuming that the entire purchase price will be carried as a balance on the card. You are assuming interest rates, FICO scores, etc. Why don't we wait until there are some facts?

Chris F

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

 

[Debbie Bruce]

There is a lot of speculation here, but no facts. No one has any idea how the program will work. You are assuming that the entire purchase price will be carried as a balance on the card. You are assuming interest rates, FICO scores, etc. Why don't we wait until there are some facts?

Chris F

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

 

[goofyone]

I tend to believe what my uncle states. The credit card option will be for those who have low ficco scores or just plain terrible credit. For them a newly issused card showing a basically maxed out limit should not hurt them since they can't get credit anyway. Now if they pay as agreed down the road as the card shows less and less of a balance it could help after a few years to establish a respectable credit score. Any time you get a new credit card you points go down , if you max it out your score plumits. Credit cards are not intended to buy stuff one normally can't afford, those who charge and do not pay balance in full each billing period drop points every month.The interest will be very high for those who buy their Elio with the card plan, that is if it really is to be offered. After reading this below I have to agree with my uncle. Nothing more than sales talk to get reservations
We can appreciate your concern and until our credit card/ gas card program is finalize, we are not marketing this program on our website. I understand this program has been mentioned in articles and interviews, but until it is finalized we can not offer it. With any such program, an individual will be required to register and qualify for the program.
As for the reservations, we are offering a refundable reservation to everyone, as well as a non-refundable option. So if the person making the reservation determines that they can not afford a non-refundable reservation, they will be still be able to place a refundable reservation that would still entitle them to reservation for our vehicle within the first year of production. We have clearly stated in the reservation documentation that this is a risk and does not guarantee an individual a vehicle.
Best Regards,
The Elio Team

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.

 

[Chris F]

Good reason to pay cash