Elio Buyer Financing Options Discussion

[HHH]

Lots of good advice being giving. I would like to add a little also.

If you do not have extra to put down on the Elio right now, then wait and save. With the production numbers being proposed you will only be a few months behind those who went All-In a year ago. That is a few months more to save up the price of the Elio.

Now the math: Assume you wish to save up $7,000 rather than borrow $7,000. If you, and anyone else with bad credit, have to pay WAAAAAAAYYYY high interest rates on that money, then your monthly payment will be very high. Instead, make those payment to yourself now and save that money before you get the Elio. I would recommend that you check with your local Coin Store as to their buy/sell rates before doing this, but think about buying silver coins every paycheck and saving these. Then when it is time to take delivery of the Elio, take the coins back down to the coin store and sell them back, or sell them to another collector. Not too long ago a friend from the office was talking about selling a gold coin to buy a new computer. I told her not to, but if she insisted, I would buy the coin from her. Even though I offered her more, she sold it to me at the coin store's buy price, so I got a good deal on the transaction. You may be able to do the same. One thing that we do know is that silver will not earn you interest, but in two years it will be worth more.

$7,000 divided by 100 weeks (one year 11 months) is $70 per week, about $300 per month. If that is too much, the half that, $35 per week in silver coins will give you over half the purchase price, and the rest can be financed using the gas credit card, even with bad credit. Remember, $70 per week is only $10 per day. Try to find ways to save those little things and it will add up.

To sum it up, why wait to make payments, make them now and pay yourself the interest.

I know you are trying to be helpful, but a couple points you make are confusing to me. You state that "Silver will not earn you interest, but in two years it will be worth more." What makes you so sure? Its market price fluctuates and predicting medium term price trends is akin to guesswork.

You say a friend had a gold coin to sell. You bought it at the dealer's offering price to buy, which is less than the retail price the dealer would resell it for. Again, medium term price fluctuations provide no assurance of profit. Certainly buying something at retail, and later selling it at the equivalent of wholesale is a guaranteed money loser unless the asset definitely increased in value beyond the buy/sell spread.

 

[Joshua Caldwell]

Another important point to consider regarding 401 (k) loans: Should you lose your job or quit the balance is immediately "called", which means you must pay it off. This has tripped up many people at a time when this was the last thing they needed to find out. No income and a loan payoff can be a nasty combination.

The upside is that you don't actually have to pay it off, you can just take the tax penalty for an early withdrawal instead.

 

[LillyMayPatterson #1685 & #5648]

How its going to work if ever

What ever happened to Davidb1973?
Did you sign back in using another name?

 

[Norahsbed]

USAA member as well, maybe all of us should pick a week and call in all at once about 6 months out. That should give them enough time to figure it out! Maybe a letter campaign to CEO with note about, finding financing or Insurance else where. I've been a member on an off for almost 40 years and have all insurance and banking there! That might get someone's attention!

 

[Norahsbed]

We won't have to finance, as we have been putting money away since we bought the Truck in 2008. We've always stayed a step ahead, knowing we'd have to get a new vehicle eventually. Only this time, the new car will be half price! So we won't have to trade in the Chevy!

 

[Norahsbed]

Something some folks might want to look at is their 401K. Interest is low, and you, your 401K are the ones to receive this interest. You are in effect borrowing the money from yourself. If you have enough vested amount in your account you could borrow 100%. Payment is usually deducted from your paycheck. Check with your HR department.

H20dog, it sounds good but the last thing you should do is take a loan from your 401K! Ask any good financial advisor. Unless you know absolutely, that your job is safe for the term of the loan ( who knows that today ) don't touch your 401K. If you take out the loan on your 401K and then get laid off or fired they can ask the loan be paid in full immediately, if you don't pay it off ( ie getting another loan but who will loan you money, if you don't have a job. ) then you will pay ordinary income tax on the loan amount, plus a 10% penalty if you are under age 59 1/2.

 

[LillyMayPatterson #1685 & #5648]

Hold up everybody, Joel Sheldrown just wrote in on facebook about this. The quotes we are getting are only ball park guesses (Like I had stated before). They can not give quotes because they do not have VIN numbers. They WILL be insured as cab-enclosed motorcycles, not cars.

 

[Craig]

H20dog, it sounds good but the last thing you should do is take a loan from your 401K! Ask any good financial advisor. Unless you know absolutely, that your job is safe for the term of the loan ( who knows that today ) don't touch your 401K. If you take out the loan on your 401K and then get laid off or fired they can ask the loan be paid in full immediately, if you don't pay it off ( ie getting another loan but who will loan you money, if you don't have a job. ) then you will pay ordinary income tax on the loan amount, plus a 10% penalty if you are under age 59 1/2.

No to the 401K good job or not.

 

[Craig]

Hold up everybody, Joel Sheldrown just wrote in on facebook about this. The quotes we are getting are only ball park guesses (Like I had stated before). They can not give quotes because they do not have VIN numbers. They WILL be insured as cab-enclosed motorcycles, not cars.

Some one else can do the math.
Will have to find this for Ohio.

http://www.oregon.gov/ODOT/DMV/pages/vehicle/motorcycle.aspx

 

[LillyMayPatterson #1685 & #5648]

Some one else can do the math.
Will have to find this for Ohio.

http://www.oregon.gov/ODOT/DMV/pages/vehicle/motorcycle.aspx

Don't bother, The laws are changing, probably in November, hopefully by January.
I did tell you all I called and asked for a quote for me, full coverage, full year on a $7,000 enclosed-cab motorcycle. BALL PARK for me will be $266.00 per year. Your rates will vary because of your driving record and where you live.