Elio Insurance - Cost. - General Discussion And / Or Specifically Advanced Coverages.

[CompTrex]

I like that. But if you have a loan, and most who desperately need this car will, then full coverage is required. I'm in that boat.

Unless you use the 'gas card' plan financed by Elio. That's my plan. I'll pay the same in gas as I do now, except that 2/3 of that money goes to pay for the car. So I end up paying no more than I currently am, then in two years, I have a free car! Granted, I won't see the $200 per month benefit of the Elio for a couple of years, but I'm not out any more money than I currently am.

 

[Charlie G]

Unless you use the 'gas card' plan financed by Elio. That's my plan. I'll pay the same in gas as I do now, except that 2/3 of that money goes to pay for the car. So I end up paying no more than I currently am, then in two years, I have a free car! Granted, I won't see the $200 per month benefit of the Elio for a couple of years, but I'm not out any more money than I currently am.

I feel like this plan is going to take the average person a LONG time to pay off using only the card.
I commute more than average, around 76 miles per day...
Using the Elio for JUST my commute with the gas card option, I would spend about $82/month of gas (or $247 charged), $164 of which would be a 'car payment'. With a financed amount around 9k (which is what i'm assuming with taxes/fees etc), even at 0% interest it would take me close to 5 years to pay off the car with the gas plan, and I use more gas than the average bear.

The 'average' person drives about 13.5k miles per year (1125/month). Using the same numbers, that's close to 7 years to pay it off using the gas card option (with no interest). And that's using only the Elio.

 

[CompTrex]

I feel like this plan is going to take the average person a LONG time to pay off using only the card.
I commute more than average, around 76 miles per day...
Using the Elio for JUST my commute with the gas card option, I would spend about $82/month of gas (or $247 charged), $164 of which would be a 'car payment'. With a financed amount around 9k (which is what i'm assuming with taxes/fees etc), even at 0% interest it would take me close to 5 years to pay off the car with the gas plan, and I use more gas than the average bear.

The 'average' person drives about 13.5k miles per year (1125/month). Using the same numbers, that's close to 7 years to pay it off using the gas card option (with no interest). And that's using only the Elio.

True. I'm on about a 2 year payback. But use the card for other things as well and it'll be sooner. On the flip side, then it cost you more out of pocket. Oh well. No plan is perfect.

 

[#491]

Don't be surprised if Elio doesn't partner with an insurance carrier to provide insurance as well. Their offering financing with a "gas card" which must be backed by a lender because I doubt Elio will be able to carry that amount of debt out of the gate.

 

[Charlie G]

True. I'm on about a 2 year payback. But use the card for other things as well and it'll be sooner. On the flip side, then it cost you more out of pocket. Oh well. No plan is perfect.

I seem to remember them saying it could only be used for gasoline, and would have a limit of something like $500.
I'm sure there will be other options to pay in, specifically a minimum monthly threshold that must be met (which the 13k mile scenario above likely wouldn't). Otherwise people would use the card option and then just never use the card.

 

[MaxToreador]

Progressive Insurance is one of George Soros's companies and since I have USAA I would never switch

Well, you'll get a surprise then... just hopped over to USAA to get an idea myself. They linked me to Progressive as soon as I clicked "Motorcycle/Trike."

 

[MaxToreador]

I seem to remember them saying it could only be used for gasoline, and would have a limit of something like $500.
I'm sure there will be other options to pay in, specifically a minimum monthly threshold that must be met (which the 13k mile scenario above likely wouldn't). Otherwise people would use the card option and then just never use the card.

Rep I spoke to at the Rome GA Airshow said $300 limit and recommended filling more than your 'and' car with it. Assuming by some magic wand you get a drive home from the factory ticket for $6800 with 0% interest it'll take a little under 3 yrs if you keep the card maxed.

You want to do that on JUST the Elio? Plan on driving an average of ~1.5 hours a day for the next 3 years. Not that horrible...

• 49mpg city - 84mpg hwy = 66.5mpg 50/50 split
• $100 of gas at $3.40 a gallon = ~29.5 gallons (lil over 3.5 tanks)
• 29.5 gallons of gas X 66.5mpg = ~1962 miles/30 days = 65.4 miles a day
• 65.4 miles at 45mph = 1hr 27min 12sec per day on avg

 

[HHH]

Don't be surprised if Elio doesn't partner with an insurance carrier to provide insurance as well. Their offering financing with a "gas card" which must be backed by a lender because I doubt Elio will be able to carry that amount of debt out of the gate.

Can't say about a designated insurance carrier (might be some anti-trust issues, even if you are free to choose your own).

I spoke with Jerome Vassallo in Birmingham, AL last month regarding the credit card program. He stated that they have a bank they like to provide the card program. He also said there would be a monthly minimum payment for users, such as students, who might not purchase much gas.

CharlieG's numbers make it look difficult; MaxToreador's make it look plausible. Different assumptions?

 

[MaxToreador]

Can't say about a designated insurance carrier (might be some anti-trust issues, even if you are free to choose your own).
...
CharlieG's numbers make it look difficult; MaxToreador's make it look plausible. Different assumptions?

I can see them setting up an arrangement with an insurance company or two, not anything super-formal but maybe a "Hey, we've spoken to these guys. They understand the intricacies of insuring these cars and have written the policies to show that. Recommend atleast getting a quote from them." Heck since it looks like the cars have to be independently safety tested, invite the 'big boys' to each send one of their specialists to see some of the later testing. Flight, hotel, and a small meeting for a handful of "squints" to possibly get one of the big insurance companies to 'back' the car? Cheap gamble, high reward. I doubt they'll have a bad review of it. Light car so damage to the other vehicle will be less, then if the engineers are right on the safety rating a low likelihood of injury. The insurers should LOVE the Elio. The only 'downside' I could see to the car is they could end up with alot of 'totals' due to the price. Then again a 'totaled' big 3 new sedan payout is ~2-3 just off the line Elios.

On my numbers: Keep in mind I didn't factor in Taxes, Delivery, or Interest and only used a bare base model. In truth I imagine full paid off cost of the avg financed Elio will be more like $9-10k+. Taxes alone here in GA on the base model will bump it up to $7250, and I can't imagine a bank wanting less than 10-20% return on that credit card plan. I'd estimate an additional 6 mos to a year on that driving plan to cover the secondary ticket costs and interest on the car. That all said, if you plan on the Elio as an only car with the card... Go to the other mall to shop every once and a while, the one that's 1-2hrs away. (Also that trip to see Grandma/the weird family member far away? Not a maybe, you're behind on your mileage.)

 

[HHH]

I can't imagine a bank wanting less than 10-20% return on that credit card plan.

Putting on my former bank internal auditor hat: If the credit card plan has a security interest in the vehicle, why would they need to charge such a high rate? Other lenders would offer conventional new vehicle financing at a far lower rate, making the card very uncompetitive. This would reflect negatively on EM. As an example, Kim Kardashian had a credit card marketed in her name. The rate and fees were so high that it was soon taken off the market due to her followers' anger.

Home equity lines of credit permit you to use a credit card, too, but the collateral keeps the rate low.