Enforcement Of Binding Commitment

Very interesting reading. Thanks to all who "chimed in".

Maurtis said:

I was wondering that myself. They mentioned needing 65,000 reservations, but did not mention how many of those need to be binding commitments for the ATVM. Say you only got 1,000 binding commitments out of those 65k refundable and non-refundable, that would seem like it would not make a difference. And surely they do not need all 65,000 to be binding commitments.

I wonder if there will be another push after they finally get the 65,000 reservations to get more converted to commitments? "Commit by Valentine's Day 2017 to feel the love"?

Click to expand...

My suspicion is they had 1,000 binding commitments within 72 hours of the text. My guess is that at least half will take the $300 price discount and more likely about 85%.

If 65,000 people commit to purchasing an Elio that's only $65,000. That's chump change to any company in the motorcycle/automotive world. The NEED the gov't loan before any production starts. And I don't see how they could enforce a purchase contract.

The fact is that only Elio junkies like us are aware of the vehicle. Once production starts and the vehicles hit the streets I predict demand will outstrip supply. I think people will flock to this vehicle once they hear about the low MSRP, see how futuristic it looks and the high fuel mileage. This vehicle is literally a game changer In the automotive world. Does the public want a used car with 100,000 miles or a brand new Elio with a 3-year warranty for the same price?

Maurtis said:

I was wondering that myself. They mentioned needing 65,000 reservations but did not mention how many of those need to be binding commitments for the ATVM. Say you only got 1,000 binding commitments out of those 65k refundable and non-refundable, that would seem like it would not make a difference. And surely they do not need all 65,000 to be binding commitments.

I wonder if there will be another push after they finally get the 65,000 reservations to get more converted to commitments? "Commit by Valentine's Day 2017 to feel the love"?

Click to expand...

I think you have to approach it from the idea that the 65k are the only folks that can ,if they chose, lock in the 7k. The 60,001 will not have the option, and possibly pay for the E above the 7.3k. I see it as a cut-off to offer this "incentive", just like all the others- i.e. to let folks "get under the wire"
2014 Sept. 1 was supposed to be the cut-off for the $500 incentive. Although the highest spike in reservations, leading up to that date, they then re-opened as a special event on Black Friday the same $500 incentive, as they didn't get enough of a boost. When you see those time lines of reservationists the spike is dramatic.
I'm sure when they start rolling off the line, it will be impossible to count the (by that time) buyers, not reservationists