Elio Price Discussion, $6800?

[Joshua Caldwell]

BTW, if you run the city and highway MPG info according to the NHTSB it comes out to 68 MPG combined for $6,800 This is nice and catchy and I'm not sure why Elio isn't using this in advertisements.

 

[Danno]

I was thinking on how that $6800.00 number came about. Not $6900, not $7000 not $6700.

and will they actually be able to deliver a vehicle at $6800?

inflation and delays make this harder and harder as every day passes by.

You cannot buy a new Motorcycle for $6800. so how disappointed would you be if they missed that mark?

I can't pass this one up....

Where did they come up with $1300.00 for a macbook pro?
How do they come up with $3.xx for gasoline?
My mailbox cost $35.00...how come?
If an orange was named because of the color, why isn't a banana called a "yellow" ?

 

[outsydthebox]

You cannot buy a new Motorcycle for $6800. so how disappointed would you be if they missed that mark?

I must add...The "price" of almost everything, is not based solely on what it cost to manufacture. The price is more about what the maker "thinks" (based on consumer testing) is the most money they CAN charge without loosing sales volume. Or "what the market will bear."
On the other hand, IIRC, when EKH asked this question of an EM rep..."why don't you sell it for more...you could get 10K for them?" The reply was, "because Paul knows we need this at the lowest price possible" (once again, as I remember reading it ).
EM is also working to change laws that would "qualify" the Elio for "cafe credits". If successful, these "credits" could then be sold (to gross polluting manufacturers). And IIRC, they could "profit" by as much as $600M/year. So, they could sell "at cost" and still end up being highly profitable.

 

[Jeff Porter]

I can't pass this one up....

Where did they come up with $1300.00 for a macbook pro?
How do they come up with $3.xx for gasoline?
My mailbox cost $35.00...how come?
If an orange was named because of the color, why isn't a banana called a "yellow" ?

LOL and big like!

 

[Jim H]

Why is 84 MPG/$6,800 so impactful? Because it’s a lot better than 23 MPG/$32,068!

As a fan of Elio Motors and the vehicle, you know that we continually drill home two really important benefits that some thought impossible but we plan to make reality.

84 MPG and $6,800.

We say it again and again and again. Why? Because these two targets are what drives Elio Motors and what will ultimately drive you.

These figures – 84 MPG and $6,800 are radical improvements compared to industry averages, and today’s consumer is clamoring for something this affordable and this fuel efficient.

The average new vehicle price in 2013 was $32,068, according to industry pricing guide Kelley Blue Book, while the average EPA fuel economy estimate for 2013 was 23 MPG. Let that sink in -- $32,068 and 23 MPG. With an Elio, consumers get nearly three times the gas mileage for around one-fifth the price.

“Vehicle affordability is really out of balance,” said Paul Elio, CEO of Elio Motors. “The weak economy has suppressed earnings for most people, but the cost of a new vehicle continues to go up. It really is an unsustainable course.”

If a consumer placed a 20 percent down payment on an average vehicle, they would still need to finance more than $25,000. For a 48-month loan, that means they will pay more than $600 per month. It’s a hefty price tag, and it’s far too much for most people in the United States. With gas at $4 per gallon, it costs $2,600 to drive 15,000 miles in a vehicle with average fuel efficiency. Driving the same distance in an Elio at $4 per gallon will cost less than $1,000, which is obviously a significant savings.

Of course, millions of vehicles on the road today get significantly lower than average fuel efficiency. Most of these “clunkers” are low-cost vehicles owned by people who don’t believe a new vehicle is within their price range. For these consumers, Elio Motors will be a true game changer. Instead of driving an unreliable, low-mileage vehicle, “clunker” owners will now be able to afford a new vehicle that costs four times less to operate and comes with a three-year, 36,000 mile warranty.

“High vehicle costs, high operating costs and high maintenance costs drag down the affordability of most used vehicles,” Elio said. “We are providing our own version of "Cash for Clunkers" that will help get many of these vehicles off the road. So, when we hit our sales targets, we will help to reduce fuel consumption by 0.35 percent. That’s significant.”

For Elio, it was a matter of challenging people’s mindset about transportation. Sure, families need the functionality offered by a pickup truck, an SUV or a minivan. There are projects to do, sports to play and vacations to take. Often, these require a big vehicle with a lot of seats. And, of course, the car companies are more than willing to manufacture and sell these vehicles. Pickups, SUVs and minivans are very profitable.

But, why not have a second vehicle for all those days when you aren’t doing a project, heading to a ball game or heading up to the cottage? Most work commutes – 76.3 percent, in fact – are driven solo. So, why not own a second, more affordable vehicle for those trips?

As long as vehicle prices and operating costs remain high, Elio will remain a winning solution for all.

Craig, thanks for providing this information again. It is helpful to the many people who have recently joined the forum and the Elio movement.

 

[toxotes]

If Elio does raise the price to $7300 what has $1000 for 15ish months early gotten us?
I look at $1000 all is a “buying stock “in Elio with a possible 50% dividend, but if the price goes to $7300 where’s my dividend? I understand you can win or lose in stocks, but Elio continues to advertise $6800, but going to $7300 is changing what I invested in.
If I invest in a company that is going to manufacture Timex watches then after getting my money declares they are now going to manufacture Longines watches, the playing field has now changed.
As many of us believed in Elio, to give them our brass, where will our thank you be if the price goes to $7300? Because in the dollars and cents of it all, why not have waited until the car hit the streets to buy one.
Yes I understand without the early birds, Elio would now have gotten to the streets, but were we all not put here to make Paul rich. If he needed the money then going public would have been the proper thing to do.
For as I see it, if the Elio goes to $7300, and I put $1000 in early, I’ve been duped.

I ask ANYONE here would you have given Honda, GM or Toyota $1000 on a dream?

I think Paul is a standup guy but if that price goes to $7300 without compensation to the early birds, big business will have prevailed again.

 

[CompTrex]

I see your point, but I don't see the $1000 as an investment. I see it as simply a reservation. I didn't decide to go all in based on the fact that I may be able to get a 50% return on that money. I went all in because:

• I believe in the car
• I want mine as soon as possible
• I want to be able to tour the factory. (I heard somewhere that only $1000 all-ins will have that opportunity)

In addition, it seems as if they are really committed to keeping the base price to $6800.

 

[cdurrett]

If Elio does raise the price to $7300 what has $1000 for 15ish months early gotten us?
I look at $1000 all is a “buying stock “in Elio with a possible 50% dividend, but if the price goes to $7300 where’s my dividend? I understand you can win or lose in stocks, but Elio continues to advertise $6800, but going to $7300 is changing what I invested in.
If I invest in a company that is going to manufacture Timex watches then after getting my money declares they are now going to manufacture Longines watches, the playing field has now changed.
As many of us believed in Elio, to give them our brass, where will our thank you be if the price goes to $7300? Because in the dollars and cents of it all, why not have waited until the car hit the streets to buy one.
Yes I understand without the early birds, Elio would now have gotten to the streets, but were we all not put here to make Paul rich. If he needed the money then going public would have been the proper thing to do.
For as I see it, if the Elio goes to $7300, and I put $1000 in early, I’ve been duped.

I ask ANYONE here would you have given Honda, GM or Toyota $1000 on a dream?

I think Paul is a standup guy but if that price goes to $7300 without compensation to the early birds, big business will have prevailed again.

Hmmm, interesting. I didn't make that sort of calculation at all. My investment perspective didn't 'care' whether it was 6800 or 7300. Instead it was based on a 50% return on 1000 in 18 months. One could absorb a lot of risk for a 50% return. :-)

Our calculation was something like this. I gave Paul a 60/40 chance of success. 60% of 500 is 300. If all the 1000 was lost that would be 40% of 1000 or 400. Waving my quantum arms around I could see the 'future' and it was likely to 'cost' me 100 (400-300).

It's a cool car and concept. I'll pay 100 for somebody else's dream. Done it before...

 

[goofyone]

To my way of thinking even if the price goes up to $7300 then my early reservation still saved me $500 that everyone else will have to pay.

Personally, I doubt this vehicle will make it to the retail stores at $6800 as time is just not on their side for this. However I still believe it is possible for EM to offer it to reservation holders for $6800 even if it eats into their margin a bit more, which they should be able to make up on options anyhow. By doing this they will be able to prove that they actually did what they said and sold it for this amazing price while also keeping reservation holders very happy as we will be their biggest marketing tool. Nothing will sell this vehicle better than seeing them on the road.

Personally I believe that even if the vehicle ends up retailing for $7500 and getting 75 MPG Elio Motors will have no problem selling these vehicles in very large numbers as this will still be about $5,000 less than any car while simultaneously getting much better gas mileage. By the way I am just pulling 75 MPG out of the air as based on what I have seen and read I believe 80+ MPG, and maybe even the full 84 MPG, is entirely realistic out of this light vehicle with that engine specifically engineered for this vehicle.

Elio Motors has been up front about the fact that we are putting money down on a concept and not an actual product. When I put my money down I did so understanding that the design could change, the price could change, the fuel mileage numbers could change, and the vehicle could fail to make it to production and yet I accepted all these unknowns and put my money down anyway. After getting more involved in this forum and learning everything I have I actually feel even better about my decision today than I did when I made my reservation.

 

[toxotes]

I agree Goofyone Elio will probably sell to early birds at $6800 (even if it is at loss) which is what would be "fair"

I'm ok with $7300 and "75MPG", but something should be tossed our way for believing.
'..