Carrying Cost?

[Craig]

At $127.00 a car, a month and no money down.. How many cars will have to be produced to reach the amount of money per month, required to cover operating capital?

Worst case scenario, the cost of every car manufactured by EM, could end up being carried by the company till it is paid for, if everyone used the credit card method.

Do I have this right?

I think EM should take 50 or 60 million and start EMAC and finance all the cars them selves at 1 or 2% interest.
At one time GMAC was making more money then GM was.

 

[BlioKart]

At $127.00 a car, a month and no money down.. How many cars will have to be produced to reach the amount of money per month, required to cover operating capital?

Worst case scenario, the cost of every car manufactured by EM, could end up being carried by the company till it is paid for, if everyone used the credit card method.

Do I have this right?

I think EM should take 50 or 60 million and start EMAC and finance all the cars them selves at 1 or 2% interest.
At one time GMAC was making more money then GM was.

I doubt Elio has the money to finance all the vehicles.

 

[Craig]

I doubt Elio has the money to finance all the vehicles.

Where will they get the money to operate if everyone charges on the card with no money down?

 

[BlioKart]

Where will they get the money to operate if everyone charges on the card with no money down?

I mean like to set up Elio version of GMAC

 

[AltoidBox]

I assumed it would be similar to traditional financing. A bank will put up the money and collect the payments and interest, Elio gets paid immediately. They just have to find a bank that is willing to operate on the proposed gas card payment plan.

Sent from my Nexus 5 using Tapatalk

 

[WAYNE]

I think there will be a minimum payment.

 

[BlioKart]

I assumed it would be similar to traditional financing. A bank will put up the money and collect the payments and interest, Elio gets paid immediately. They just have to find a bank that is willing to operate on the proposed gas card payment plan.

Sent from my Nexus 5 using Tapatalk

That is what I thought and assumed.

 

[goofyone]

Elio is a new company so they need all the income they can get which means carrying loans is not what they want to be doing.
I don't think this credit card deal will ultimately be very friendly for buyers however the more I think about it the more I understand what a great deal it would be for Elio Motors. I am sure Elio wants us to use the credit card financing deal because not only would they get paid right away but also in exchange for the exclusive marketing deal with the credit card bank Elio will likely also get a portion of the interest.
The problem with this is that the credit card bank has to set the interest rate high enough to cover all their costs and profit plus paying EM a few points for the exclusive deal.
If your credit is decent enough you will likely be able to get a better rate via traditional financing methods.

 

[Craig]

I assumed it would be similar to traditional financing. A bank will put up the money and collect the payments and interest, Elio gets paid immediately. They just have to find a bank that is willing to operate on the proposed gas card payment plan.

Sent from my Nexus 5 using Tapatalk

Thanks. That clears up a lot.

 

[Autoxdriver]

The gas/credit card financing idea leaves me scratching my head. Why would someone use it to put gas in their Elio at 3X the price when they can fill it up with a different card or cash? There has to be a minimum payment, so why the weird gas payback thing? I just don't see why anyone would use it since there has to be a minimum payment anyway.