Enthusiastic But... Fine Print

[RBuck]

I was on the website looking at making my "all in" reservation & read the fine print. The money is an investment in the company. The fine print says it doesn't guarantee a car or a price. I guess one has to be a bit of a speculator on this. I am less concerned that the car will be produced but what my final purchase price will be.
From the reservation agreement:
"2. Nature of Agreement; Non-Binding Reservation Payment
The Reservation Payment is NON-REFUNDABLE and provides you with the benefits in Section 4 below depending on the level of your payment. This Agreement does not constitute an agreement for the sale of a vehicle and does not lock in pricing, a production slot, or an estimated delivery date. You are under no obligation to purchase a vehicle from us, and we are under no obligation to supply you with a vehicle. If and when we notify you of the availability of the vehicle and you wish to proceed with the purchase, such sale and purchase will be governed by a separate and legally binding Purchase Agreement between you and us or between you and another authorized dealer (Elio). In the event a purchase is made, your Reservation Payment plus a bonus equal to 50% of the payment will be credited against the purchase price."

 

[Scott Miller]

I believe it states what is implied. We (Elio) are trying to build a car for the masses that is affordable and economically suitable for today's market. As this is a new market, Elio is receiving significant downward pressure to build said vehicle. To help overcome this issue, Elio is requesting a "donation" rather than what you called, an "investment." An investment would imply some sore of compensation, stock or other, that would indicate you are vested in the company. They are simply saying, "if we can get this off the ground, we will provide an additional incentive. Otherwise, thank you for your generosity."

 

[JP]

If you are very concerned, only put in $100. I'm excited for the company but since the production start date got pushed back to 2015 from summer of 2014, I'm a little nervous. It's only $100 bucks. That's what I did. /there is no guarantee the car will get made but since they have the facility, I'm fairly confident that they will be producing the car, even if they do it at a very slow rate

 

[RBuck]

Thanks for the feedback. I agree with all. I guess I looked at the investment as the $1500 credit for the $1000 reservation fee... ergo, compensation. I guess all investments are donations if an company fails to produce/earn. As I said, not real worried about the cars being produced but what the final sale price, actually, turns out to be. Probably, just lower my financial commitment and see how it goes. Looking forward to this vehicle hitting the streets with my name on the list.

 

[H town Jeff]

Another naysayer in da house!

The thought of anything that uses gasoline and gets over 75 miles to the gallon is going to scare the Hell out of the greenie weenies.

 

[RBuck]

No naysayer here. I am in. Just noted that the term "reservation" means a place on a list and nothing more per the company's own statement. I am huge fan and will be following the evolution of the vehicle closely.

 

[Craig]

If I’m not mistaking, the last thing I got from EM was that the setbacks were mainly do to legal issues, not production or lack of money.

From everything EM is trying to do for everyone and the trouble they are going through to make it happen, I think there is a better than 50/50 chance that if it does go under there is a chance we will all get our money back. If everyone was all in for a $1,000, that would only be just over 1 million dollars out of all the millions they have collected . JMO

 

[RBuck]

Just found a mention in a Consumer Reports article: http://upi.com/2848427

 

[KScarguy]

If I’m not mistaking, the last thing I got from EM was that the setbacks were mainly do to legal issues, not production or lack of money.

From everything EM is trying to do for everyone and the trouble they are going through to make it happen, I think there is a better than 50/50 chance that if it does go under there is a chance we will all get our money back. If everyone was all in for a $1,000, that would only be just over 1 million dollars out of all the millions they have collected . JMO

Dang, you must be using a US government calculator o_O...11,000 reservations x $1,000 = $11 million

 

[Cali Chris]

Dang, you must be using a US government calculator o_O...11,000 reservations x $1,000 = $11 million

I don't remember the exact numbers, but in a radio interview in January they stated that out of the approximately 9,000 reservations at the time less than 2,000 were $1,000 all in reservations. Which meant the remaining 7,000 could be deposits anywhere from $100 refundable up to $750 nonrefundable. No mater what calculator we use the consumer investment at this point is minimal compared to the funding they have received from the Parish in Shreveport, LA and the private investors.


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