Bank Loan Rates For Buying Your Elio

[Craig]

Like I said in the other finance thread, I can see a time when EMAC will finance all Elios.
At one time GMAC was making more money than GM.

 

[Anderson Howard]

I was wondering if anyone else has contacted their bank/Credit Union to see about a loan for their Elio? I contacted a local credit union and they said because the "car" is so new and there isn't an established resale value and the loan interest rate will be higher. This is because if they need to repo the car they don't know if they can recover their money or how fast it will sell. The estimated rate is about 9.0% for the new Elio "car" but for the "autocycle" (it may be classified as a motorcycle/RV) the rates are higher. They hadn't heard the term "autocycle" yet. They said they do not know for sure what the rate will be until it is out on the market. I may have to pull the "Loyal customer" to influence the rate!

- Are most people planning on paying cash?
- Or for those planning on financing their Elios, have you looked into this already? What are you being told?
- Any more info on the Elio financing program?

to pay the Elio off will fit on a credit card.

 

[Cache Man]

HA!

 

[Craig]

to pay the Elio off will fit on a credit card.

How is the interest compounded on a card? At the same interest, will it cost the same over the same amount of time as a normal car loan?

 

[Cache Man]

Typically the interest on credit cards are compounded at a higher rate. A home equity loan credit line is similar to a standard loan. It is better to get a standard loan than to use a credit card because of the higher interest rate also. I have a VISA that I receive cash back. I use this for all purchases and then immediately pay it off. It also provides better security than a debit card. So it is making me money. But it takes discipline to make sure I do not pay interest, by paying it off after purchase. I may use the VISA card to initially purchase the Elio (cash back credit) but then I will pay it off or put the amount on a bank loan. I do not recommend using a credit card to float the loan.

 

[Norahsbed]

We're planning to pay cash for at least two of our reservations. We will help Daughter with financing for hers, if need be. That credit car deal might be just what she needs for boost her credit standings. I've been complaining about the horrible maintenance bills on our vehicle lately. We're just trying to keep on the road. But, we're 'still on track', lol. We should be able to buy all three with cash.
I dream of a year or two with NO mechanic bills and the money going into travel.

Our Cavalier is in the shop as I write this. I'm without wheels until it gets fixed as the wife will take the truck to work. I could get up at 4:30AM and take her in but I'm not that enthusiastic about getting up that early. Hopefully the problem will be corrected by late tomorrow.

 

[Craig]

Typically the interest on credit cards are compounded at a higher rate. A home equity loan credit line is similar to a standard loan. It is better to get a standard loan than to use a credit card because of the higher interest rate also. I have a VISA that I receive cash back. I use this for all purchases and then immediately pay it off. It also provides better security than a debit card. So it is making me money. But it takes discipline to make sure I do not pay interest, by paying it off after purchase. I may use the VISA card to initially purchase the Elio (cash back credit) but then I will pay it off or put the amount on a bank loan. I do not recommend using a credit card to float the loan.

My question was, are all things equal (credit card/standard loan) if both interest and time are equal?

 

[wright4me]

Isn't elio going to have a gas card for the payments. You'll pay 3 times the amount that you spend on gas each month. You pay the gas off and the other goes toward the price of the elio. Just don't know what kind of interest will be added yet.

 

[Norahsbed]

I'm making extra payments into my 401k (with 80% company match) and will do either a 4% interest 401k loan or a simple withdrawal when the time comes.

Josh if you withdrawl the money from your 401k you are subject to regular tax + 10% penalty tax for a withdrawal prior to age 591/2. If you take out $10,000 with a 15% tax bracket and 10% penalty it will cost you $2,500 in taxes and leave you with $7500 for your Elio. Better to take the loan against the 401k than a withdrawn. Even better work on your credit score over the next year and try to get your number up. There are several ways to do this, just do a little research on line. This will give you more leverage when the time comes to get a loan for your Elio. You could qualify for a loan with an even lower rate than your 401k offers. Also remember if you take out the loan on your 401k you pay back the loan with after tax dollars and get hit again in taxes later in life when you start to withdraw in retirement. So in essence you will have paid taxes twice on that money. Not a wise financial move for anyone. Trust me, I know from experence.

 

[ElioDigger]

Get a open line of credit.