zelio
Elio Addict
I don't read it that way. #2 says the Elio customer receives a credit card that holds the balance of the vehicle’s cost ($6800+cost of options (upgrades?)+taxes+delivery fee)+$300 room of credit card for gas charges. If that balance is on the card then interest will be charged on it just like any other credit card. And in fact according to #4 if the credit card company charges 25% interest that $50 payment will in fact only be $37.50 toward paying down the balance on the vehicle. I do think it is good that the card can only be used for gas. I haven't had a credit card for more than 9 years but I do remember hearing about people finding their interest rates were suddenly jumping to exorbitant amounts like 25%. Even though they had made all their payemtns in a timely manner. Now if their interest rate is more in line with a regular vehicle loan then it might be worth considering. When I checked at my credit union they said an ATV, which at this time is what they would finance Elio as, interest rate loan would be around 5.99%. That means the actual payment against the loan would be $47.00.I got a little bit more information in an email exchange
Hey Joshua!
Thanks for getting back to us.
Elio Motors will be offering many different financing options as we come to production time next year. Financing is an extremely exciting area for us. One option that we will be taking advantage of will work as follows:
1. Elio customer determines their vehicle of choice.
2. Elio customer receives a credit card that holds the balance of the vehicle’s cost ($6800+cost of options (upgrades?)+taxes+delivery fee)+$300 room of credit card for gas charges.
3. Elio customer MUST purchase gas using this card (we are working out now how this will be monitored, penalties for not using the card, minimum monthly charge requirements etc.).
4. Each gas charge will be charged to the Elio owner at 3 times their gas purchase, i.e. a $25 gas charge = $75. The difference of $50 will go towards paying down the vehicle’s balance. This $50 (less interest charges from the credit card company) will go toward paying down the balance on the vehicle.
NOTES: card can only be used for gas, there will be a minimum amount that needs to be charged monthly (amount and the “minimum amount” have not yet been determined). Elio Motors is striving towards working with a bank that accepts a wide range of credit worthiness potential customers.
Best,
The Elio Team
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So, while it appears there will be an interest rate, it seems possible that the interest rate will apply only to the gas payments and not the entire balance. I could be interpreting that wrong through.
I really feel Paul Elio's idea is brilliant but I don't have a lot of trust in banks or credit card companies. It is the type of thing I will need to study very carefully. Thank you for posting this. It is definitely the most information we have on this subject. Good Work, Jobeleca! :-) Z