Affordability Vs Prestige

[Jeff Porter]

Some wise words from an article from The Motley Fool. Thought this might be a good discussion subject. Ties in nicely with the Elio, our debates on its standard features, gas prices, affordability, the goals of Paul Elio, etc.:

"Your car
The average amount borrowed for a car in 2013 was $27,000, according to Experian Automotive. For people with the lowest credit ratings -- typically lower-income families -- the average auto loan was higher, at $29,385. And that's just the loan amount. The average transaction at an auto dealership is now $32,160.

Experian's director of auto credit explained why these numbers are so high: "If you look at the most popular segments, they are full-size pickups and SUVs. It's hard to find one of those models new and fully loaded for under $30,000."

Here's your problem, America: You need a car to get to work. You picked one that can tow a boat and consumes two-thirds of a year's income.

Add in the cost of gas and this is probably where the average American can find the most savings in their budget. You can buy an excellent new car that gets 35 miles per gallon for less than $17,000. These cars come entirely stripped of prestige, but this is where saving money requires closing the gap between your ego and reality."

 

[Coss]

Some wise words from an article from The Motley Fool. Thought this might be a good discussion subject. Ties in nicely with the Elio, our debates on its standard features, gas prices, affordability, the goals of Paul Elio, etc.:

"Your car
The average amount borrowed for a car in 2013 was $27,000, according to Experian Automotive. For people with the lowest credit ratings -- typically lower-income families -- the average auto loan was higher, at $29,385. And that's just the loan amount. The average transaction at an auto dealership is now $32,160.

Experian's director of auto credit explained why these numbers are so high: "If you look at the most popular segments, they are full-size pickups and SUVs. It's hard to find one of those models new and fully loaded for under $30,000."

Here's your problem, America: You need a car to get to work. You picked one that can tow a boat and consumes two-thirds of a year's income.

Add in the cost of gas and this is probably where the average American can find the most savings in their budget. You can buy an excellent new car that gets 35 miles per gallon for less than $17,000. These cars come entirely stripped of prestige, but this is where saving money requires closing the gap between your ego and reality."

I need to send this to my daughter.

 

[Sethodine]

This makes me feel SO much better about the $12k we still owe on our car. Since we developed a real budget, we can now afford to sock nearly $1000 a month into paying it off It will be paid off by the time my Elio arrives.

 

[Buckeyejake]

A vehicle to me has alway been just a piece of equipment to do my job. I'm in sales and pretty much averaged 50K miles per year . i don't buy new because the vehicle depreciates 30% the day you drive it out from the dealership. Don't care about color and extras. It's just cost per mile. It's a disposable business tool. Use to drive Audi's because I could get at least 300K miles on the vehicle. Had to give up those due to the local dealership closing and service was cost prohibitive with a hour commute. Today, I drive a Honda. Buy one with 50k miles and drive it to 250k miles. Little to no maintenance except oil changes. So 7k dollars divided by 200k miles equals 3.5 cents per mile.

So with the Elio, its $ 6800 dollars less the $1000 bonus (or is it $1500 can remember) $5800 divided by 200k miles equals 2.9 cents per mile.

I'm buying it for its uniqueness and I also get a great value. What's not to like.

 

[BilgeRat]

One of my helpers (the assistants made about $35k) had a house payment and all that goes with it, and two little kids, PLUS a $1000/month payment on a cowboy Cadillac, and was always complaining about how he had no money...

 

[Jeff Bowlsby]

Car payment...whats that? I buy/drive older depreciated cars with low miles, sometimes they even appreciate in value. No loans needed. With the Elio price structure, it will be affordable to many without needing a loan. This autocycle has the potential to impact our economy in very positive ways and may give people the opportunity to live debt free if they choose. Freedom.