Let Your Gas Savings Make Your Payments Plan - How Does This Work?

[Jim Landry]

I've been thinking about this and I'm wondering how this will work. I understand the customer pays 3x more for the gas they buy and 2x of it goes to pay off the loan but with a high MPG ELIO the normal driver will be paying very little down on the loan. Here's a typical scenario: If this is a AND car and the ELIO is mainly driven to work, then maybe the typical driver will put 1000 miles/month on the car. Let's assume the ELIO's average highway/city mileage is 65 MPG. Then 1000 miles/month divided by 65 mpg = 15.4 gallons/month times $3 gallon = $46.20/month for gas. So 2X that would be $92.40/month going to pay down the loan. With TTL, the base ELIO will be about $7500. So $7500 divided by $92.40/month = 81 months or 6 years and 9 months.to pay down the loan and that's assuming 0% interest rate. If you assume a 4% interest rate on the loan, then you are talking 95 months or almost 8 years. I heard Paul's talk at the TEDxDetroit and caught that he said that there would be a $300 credit limit. I wondering if this some how means you will have to pay $300 a month as a "minimum payment"? If you use the $46.20/month in gas example and a $300/month minimum payment, then that leaves $253.80/month going to pay down the loan and at 4% interest rate, that would be 31 months payback which sounds more reasonable. How do you'll think it works?

 

[JEBar]

you've got the concept .... the Elio will get over 3X's the mileage of most vehicles ....in essence, they money you aren't paying for gas to fill your other vehicle will go to making payments on your Elio .... as to minimum payments, I haven't heard that mentioned

 

[Rob Croson]

I was really interested in this option, until I read that you have to trade in your existing vehicle to do it.

"The plan being developed would allow anyone with a vehicle that gets less than 27 MPG trade in their vehicle for an Elio."​

Or perhaps that's just a phrasing thing. I still need my car for winter commutes. No way I'm driving the Elio through a winter snow storm.

Hmm... does it have to be a functional vehicle? I have an old junker Saturn SL2 that got parked in the driveway about three years ago. Busted transmission, exhaust system fell off, engine wouldn't start, and now two flat tires.

 

[Frim]

Is this a create your own payment program program? The 3X concept is inviting, but it will not fit every commuter's needs or the needs of EM. Some realistic payment program will be needed to pay out the low mileage vehicles in a timely manner. That is where individual payment programs or bank financing will have to fill the gap. I accept that the shoe does not fit every foot. However, I am very happy that 3X will suit the needs of many.

 

[DWR]

Is this a create your own payment program program? The 3X concept is inviting, but it will not fit every commuter's needs or the needs of EM. Some realistic payment program will be needed to pay out the low mileage vehicles in a timely manner. That is where individual payment programs or bank financing will have to fill the gap. I accept that the shoe does not fit every foot. However, I am very happy that 3X will suit the needs of many.

I think this is for people with possible credit problems. I think I saw at one time standard credit card interest will apply. Most credit cards have 17%-23%, and that's way to high for someone with even just decent credit. I'm not even considering this program.

 

[Rob Croson]

Most credit cards have 17%-23%, and that's way to high for someone with even just decent credit.

Pay off the full balance every month, and the interest rate is irrelevant. Not that I'm disagreeing with you; credit card interest rates are practically usury. But they can be avoided completely without giving up the convenience they offer.

I'm still interested n the program. If it is offered, and I'm eligible for it without trading in my old car, I think I might go for it.

 

[Jeff Porter]

I've been thinking about this and I'm wondering how this will work. I understand the customer pays 3x more for the gas they buy and 2x of it goes to pay off the loan but with a high MPG ELIO the normal driver will be paying very little down on the loan. Here's a typical scenario: If this is a AND car and the ELIO is mainly driven to work, then maybe the typical driver will put 1000 miles/month on the car. Let's assume the ELIO's average highway/city mileage is 65 MPG. Then 1000 miles/month divided by 65 mpg = 15.4 gallons/month times $3 gallon = $46.20/month for gas. So 2X that would be $92.40/month going to pay down the loan. With TTL, the base ELIO will be about $7500. So $7500 divided by $92.40/month = 81 months or 6 years and 9 months.to pay down the loan and that's assuming 0% interest rate. If you assume a 4% interest rate on the loan, then you are talking 95 months or almost 8 years. I heard Paul's talk at the TEDxDetroit and caught that he said that there would be a $300 credit limit. I wondering if this some how means you will have to pay $300 a month as a "minimum payment"? If you use the $46.20/month in gas example and a $300/month minimum payment, then that leaves $253.80/month going to pay down the loan and at 4% interest rate, that would be 31 months payback which sounds more reasonable. How do you'll think it works?

Hi Jim, many of us have wondered over the past months about the issue that you bring up, in your example how can $92.40 be a car payment. We haven't heard anything more about how it works.

Your suggestion of there being an actual higher payment needed each month, makes more sense in the financial terms of a loan with interest etc. But we have no more specifics and just guesses at this point.

 

[Anderson Howard]

Pay off the full balance every month, and the interest rate is irrelevant. Not that I'm disagreeing with you; credit card interest rates are practically usury. But they can be avoided completely without giving up the convenience they offer.

I'm still interested n the program. If it is offered, and I'm eligible for it without trading in my old car, I think I might go for it.

Can this credit card be used on all of the vehicles that we own or is it an Elio only gas card?

 

[RUCRAYZE]

I think this is for people with possible credit problems. I think I saw at one time standard credit card interest will apply. Most credit cards have 17%-23%, and that's way to high for someone with even just decent credit. I'm not even considering this program.

That's really the only folks it will benefit(poor credit risks). Remember, it won't be EM doing the financing, the interest rate will not be lower than the market, and by allowing a long timetable insure more profits. It's sort-a like rent-to-own! Then, what happens to the repossesed Es?
My pop always taught me, if you can't pay cash you can't afford it, and if you do need a loan, you have to prove to the bank why you don't need it. i.e.- they need assurances you can afford to cover the payments., credit worthiness -lower the the credit score, the higher the lender's risk

 

[JEBar]

Can this credit card be used on all of the vehicles that we own or is it an Elio only gas card?

I haven't seen that discussed but in thinking about it, using it to buy gas for another vehicle wouldn't save any money .... if they tripled what is deducted from your account, you'd be overpaying for the gas needed to fill your vehicle .... the over-payment would still be deducted but that wouldn't reflect any savings