Elio Buyer Financing Options Discussion

[Gavin]

Hi all.
Was thinking about elio's alternative financing and haven't found much info on it.
What do you think the apr would be on the gas card financing?

Also , do you think it would be viable to combine the above with conventional financing to just knock out the note?


Thoughts and opinions appreciated!

 

[tenbsmith]

It may be hard to answer your question at this point given the limited amount of information about financing. The best thing I've found is this sentence from the eliomotors.com FAQ:

"We will have many ways to finance your Elio including the traditional ways plus a unique to Elio credit card offer that will effectively have your gas savings make your payment!"

Any business loaning a person money will almost certainly want a minimum monthly payments. In terms of using conventional financing to 'knock out the note', most loans now-a-days specify no pre-payment penalties. On the other hand, the point may be moot if there is little difference between the two.

Edited to remove incorrect info.

 

[jtmarten]

The 'gas card' financing works by charging the credit card 3x the gas fill cost. The extra 2/3 goes to the payment. The reasoning is that you'll save so much on fuel, the extra 2/3 will be about equal to what you had been paying for fuel each month with your previous vehicle. There will be a minimum monthly payment; I read $145 but that may be a projection.

 

[RogWild]

Yes, I'm sure there will be some 'minimum monthly payment', in case you don't need ANY gas during the month, and the INTEREST RATE, will probably be between the usual HIGH Credit Card rates, and the LOWER new car/motorcycle rates...... perhaps adjusted according to your 'credit rating'.... but available to all, since the vehicle is the collateral.

 

[tenbsmith]

Thanks for the info jtmarten. Do you have a link for that?

As described, the main advantage of the gas payment approach would be for people who can't or don't want to take a traditional loan. Personally, I'd rather have a regular monthly payment that I can work into my budget, but this might be a good option for people with low credit scores.

 

[The D'Elio]

I'm very unsure of this gas card payment plan. I have a lot of questions & that is why I want an Elio Cust Serv phone#. I sent plenty of emails, all unanswered. They wont call me back or give me a contact #. How can ppl do business like this? Why ignore potential customers?

 

[Cali Chris]

I'm very unsure of this gas card payment plan. I have a lot of questions & that is why I want an Elio Cust Serv phone#. I sent plenty of emails, all unanswered. They wont call me back or give me a contact #. How can ppl do business like this? Why ignore potential customers?

I think the current Elio sales and marketing team does not have the staffing levels necessary to handle the influx of questions. Compile that with the strong possibility that they most certainly have more questions than answers. It's easy for us to develop an overwhelming amount of questions, but thankfully for us they seem to only release information when they can provide informed factual information. The last article that I read about the gas card financing option was that it is there unique idea and they were looking for a credit card company that would partner with them to offer the service. Either way it will be a credit card business that offers the card with the Elio name on it. I would expect average credit card rates, 30 day billing cycles and interest compounded on a DAILY periodic rate. Not the ideal payment plan for a car unless you pay your payment before the end of the billing cycle (if it is even possible). I'm going try to pay cash and then finance the remaining on a traditional loan. Possibly doable we have 1-1 1/2 years to plan for the purchase.

 

[The D'Elio]

I think the current Elio sales and marketing team does not have the staffing levels necessary to handle the influx of questions. Compile that with the strong possibility that they most certainly have more questions than answers. It's easy for us to develop an overwhelming amount of questions, but thankfully for us they seem to only release information when they can provide informed factual information. The last article that I read about the gas card financing option was that it is there unique idea and they were looking for a credit card company that would partner with them to offer the service. Either way it will be a credit card business that offers the card with the Elio name on it. I would expect average credit card rates, 30 day billing cycles and interest compounded on a DAILY periodic rate. Not the ideal payment plan for a car unless you pay your payment before the end of the billing cycle (if it is even possible). I'm going try to pay cash and then finance the remaining on a traditional loan. Possibly doable we have 1-1 1/2 years to plan for the purchase.

Thanks Cali, I'd rather finance it thru my own bank with normal rates

 

[Jerry Greif]

Ok here is the simple math, go to your bank or credit union and get a $7000 loan with a term of 60 months. With the current rate (2.29) at my credit union the payments will be $124 per month (that's a super low payment). Now the eye opener, if I drive 15000 miles per year and get 30 MPG more than I am getting now with my Colorado I will save $112.50 per month on gas if gas is at $3 per gallon. Now more math, subtract the savings from the payment this equals a monthly payment of $11.50. Here in Iowa with the deposit on pop cans I only need to pick up 230 pop cans per month to have a new car. At this rate everyone should be all in at $1000, I am. With the $500 off the price for going all in at $1000 this pretty much makes this a free car.

 

[Cali Chris]

Ok here is the simple math, go to your bank or credit union and get a $7000 loan with a term of 60 months. With the current rate (2.29) at my credit union the payments will be $124 per month (that's a super low payment).

I'm guessing that the car out the door will be closer to $8000 with tax, license, prep, etc., etc. I also just checked online with my credit union and if they consider this a car then I will pay about 2.79% apr, but if they consider it a motorcycle then I will have to pay 7.34%. This will add about $1,000 to the cost of the loan, OUCH! We need to also remember that interest rates will not go down much if any, but there is a lot of room for them to increase. Large cash down payment and nothing longer than a three year loan would be wiser I think.