Total Out The Door Price?

[Rickb]

Wow! sure about that number?
I just noticed that my bank was offering to start or refinance a car loan for an APR 2.99%
Not sure if that would include a auto cycle any who -
Most vehicle loans are at APR 5.99 right now around here. Hope they don't go up too far by the end of next year.
MK

20% doesn't seem like a financing interest rate Paul Elio would agree to for the planned Elio Card.

 

[tazairforce]

Heh Hem.
[Broken External Image]

'Heh Hem'
Surly you would not put 'Hi Performance Seats', at 800$, in a mere Honda. Looks like what you show here is 10/12 K worth of parts on a 3K$ commuter. Can a vehicle such as this achieve more than 20 MPG or beat the Elio's 9.6 to 60?? Can it go past your city limit sign with any since of reliability??lol

 

[BlioKart]

OK, but I'm having a problem here, Why would anyone, in their right mind, buy 'HI Performance Seats', at any cost, for a 'Bottom of The Line Ford Focus'?? Maybe a Mustang but not a Focus.

Recaro

 

[GaPawn]

20% doesn't seem like a financing interest rate Paul Elio would agree to for the planned Elio Card.

As I see it, credit card debt is unsecured debt. Typically a credit card, for an "average" person with "average" credit runs in the vicinity of 18-21%. An auto loan is a secured loan, meaning you pledge your car as collateral, to "secure" the debt. Therefore, you get a 2-8% annual rate, due to the fact that you have good credit, and have pledged collateral to "secure" the typical auto loan.

That rate of 20% for credit card debt sounds pretty reasonable (not that I'd ever go there) for folks that can't find financing anywhere else. That's actually a pretty durn low rate compared to the typical "buy here - pay here" used car lot. I suspect Elio would make a couple or 3% for arranging the financing, so it's a win/win for them. They get to sell an autocycle, to someone who couldn't afford it any other way, AND make a few extra $$$ by arranging the financing, just like current car dealers do.

Heck, if you borrow $$$ from a pawnshop, in the state of Georgia, you'll pay 25% PER MONTH!!!!

 

[StuartGrant]

'Heh Hem'
Surly you would not put 'Hi Performance Seats', at 800$, in a mere Honda. Looks like what you show here is 10/12 K worth of parts on a 3K$ commuter. Can a vehicle such as this achieve more than 20 MPG or beat the Elio's 9.6 to 60?? Can it go past your city limit sign with any since of reliability??lol

Try $1500 of parts on a $1000 car.

What I'm trying to get at is that since when has what makes sense had anything to do with people modifying their vehicle? I've seen people put $10k motors in $800 rolling shells, I've seen people put $80 worth of walmart PC speakers in the back seat of a $20k car, V8 swaps into an RX7, tractor diesel swaps into a Geo Tracker and I'm sure there's much worse than that out there.

 

[Rickb]

As I see it, credit card debt is unsecured debt. Typically a credit card, for an "average" person with "average" credit runs in the vicinity of 18-21%. An auto loan is a secured loan, meaning you pledge your car as collateral, to "secure" the debt. Therefore, you get a 2-8% annual rate, due to the fact that you have good credit, and have pledged collateral to "secure" the typical auto loan.

That rate of 20% for credit card debt sounds pretty reasonable (not that I'd ever go there) for folks that can't find financing anywhere else. That's actually a pretty durn low rate compared to the typical "buy here - pay here" used car lot. I suspect Elio would make a couple or 3% for arranging the financing, so it's a win/win for them. They get to sell an autocycle, to someone who couldn't afford it any other way, AND make a few extra $$$ by arranging the financing, just like current car dealers do.

Heck, if you borrow $$$ from a pawnshop, in the state of Georgia, you'll pay 25% PER MONTH!!!!

I agree that 20% is typical. I was hoping Elio may be doing business differently than the current auto industry standard. I guess I'm being overly optimistic regarding financing for those that need it........but don't abuse it. I'm with you and will never go there either and don't recommend it under any circumstance.

 

[ncarter124]

I'm not too worried, simply because in the back of the minds of those working on this car, they have to know that a lot is riding on that price. If they fail to deliver or come close, a lot of faith in the project will be lost. Now I can see it creeping up a tad, to $6995, maybe $7200... but I don't foresee a scenario where it will just be "Oh sorry, it's 10 grand now". Just my 2 cents.

 

[ncarter124]

I agree that 20% is typical. I was hoping Elio may be doing business differently than the current auto industry standard. I guess I'm being overly optimistic regarding financing for those that need it........but don't abuse it. I'm with you and will never go there either and don't recommend it under any circumstance.

I think this entirely depends on how they set this up. If they are indeed going to treat it as a credit card, 20% is going to happen. If they structure it as something akin to a card tied to a bank loan/acct, it could be lower. I don't know a ton about these sorts of things, but it boils down to who will be doing the financing, a bank or a credit card company. Only time will tell.

 

[GaPawn]

I agree that 20% is typical. I was hoping Elio may be doing business differently than the current auto industry standard. I guess I'm being overly optimistic regarding financing for those that need it........but don't abuse it. I'm with you and will never go there either and don't recommend it under any circumstance.

Those of us with good credit, and that pay our obligations, get rewarded with lower rates, due to the fact that there is little risk involved in lending us $$$.

Those who are not as disciplined as us, have to pay higher rates because they are a much more risky investment. "Buy here - pay here" used car lot rates tend to run in the 25-45% range (depending on the "applicable fees" that are tacked on to the purchase price), and the folks that use them have little recourse, due to their past history. To these folks, an interest rate of 20% would be a godsend! Just having the opportunity to purchase a new vehicle with a 36 month 36,000 mile warranty is an incredible option at "merely" a 20% annual interest rate, compared to a 45% APR, on a gas guzzling, 15 year old, 198,000 mile, lemon!!!

Elio Motors could easily put these individuals on the path to financial independence by arranging what we would consider to be a "terrible" 20% loan.

Beauty is in the eye of the beholder. (And is often based upon frame of reference and circumstances!)

 

[fpelsdca]

Unless anyone can link us to something said by Elio that indicates a 20% interest rate I suggest that we no longer speak bad about the Credit Card option. It may be that Elio will be able to find a financial institution that will offer the card at 1.99% interest. Or it could be 5.99% interest.

We DO NOT KNOW, so we should not speculate. This is almost as bad as those who keep talking about the AMT option costing $1,000. It may be that this option is for NO COST because the savings on the clutch pays for any extra cost of the AMT. Just saying....