Pay With Fuel Credit Card

[3 Card]

Elio Motors Customer Service (Elio Motors)
Apr 10 19:24
Hello!
Thanks for your email.
Elio Motors will be offering many different financing options as we come to production time next year. Financing is an extremely exciting area for us. One option that we will be taking advantage of will work as follows:
1. Elio customer determines their vehicle of choice.
2. Elio customer receives a credit card that holds the balance of the vehicle’s cost ($6800+cost of options (upgrades?)+taxes+delivery fee)+$300 room of credit card for gas charges.
3. Elio customer MUST purchase gas using this card (we are working out now how this will be monitored, penalties for not using the card, minimum monthly charge requirements etc.).
4. Each gas charge will be charged to the Elio owner at 3 times their gas purchase, i.e. a $25 gas charge = $75. The difference of $50 will go towards paying down the vehicle’s balance. This $50 (less interest charges from the credit card company) will go toward paying down the balance on the vehicle.
NOTES: card can only be used for gas, there will be a minimum amount that needs to be charged monthly (amount and the “minimum amount” have not yet been determined). Elio Motors is striving towards working with a bank that accepts a wide range of credit worthiness potential customers.
We expect that due to the low price of the Elio, a great percentage of applicants will be able to finance their Elio.
Best,
The Elio Team

 

[H2odog]

Elio Motors Customer Service (Elio Motors)
Apr 10 19:24
Hello!
Thanks for your email.
Elio Motors will be offering many different financing options as we come to production time next year. Financing is an extremely exciting area for us. One option that we will be taking advantage of will work as follows:
1. Elio customer determines their vehicle of choice.
2. Elio customer receives a credit card that holds the balance of the vehicle’s cost ($6800+cost of options (upgrades?)+taxes+delivery fee)+$300 room of credit card for gas charges.
3. Elio customer MUST purchase gas using this card (we are working out now how this will be monitored, penalties for not using the card, minimum monthly charge requirements etc.).
4. Each gas charge will be charged to the Elio owner at 3 times their gas purchase, i.e. a $25 gas charge = $75. The difference of $50 will go towards paying down the vehicle’s balance. This $50 (less interest charges from the credit card company) will go toward paying down the balance on the vehicle.
NOTES: card can only be used for gas, there will be a minimum amount that needs to be charged monthly (amount and the “minimum amount” have not yet been determined). Elio Motors is striving towards working with a bank that accepts a wide range of credit worthiness potential customers.
We expect that due to the low price of the Elio, a great percentage of applicants will be able to finance their Elio.
Best,
The Elio Team

Not an option I would ever use, but could get people in an Elio that otherwise could not come up with the money. Might also be used as a credit builder for folks recovering from bankruptcy, etc.

 

[Grumpy Cat]

They've also said standard financing will be available.

 

[Craig]

Not to good with credit card interest, but wouldn't the interest charge be less than $3 on $125.00 for 30 days, even at 24%? Can someone help?

 

[3 Card]

Not to good with credit card interest, but wouldn't the interest charge be less than $3 on $125.00 for 30 days, even at 24%? Can someone help?

You interest will be based on your 7000 purchase price already on the card..Charging 50 bucks in gas being billed for 3x's that amount , the extra hundred will barley cover the finance charge at credit card interest rates.. I financed my jeep at 2 percent apr, Paying about 25 bucks a month interest..multiply that x 12 would be the amount at those rates.. but it's 7k not 22k

 

[RogWild]

Your statement, "sounds Like A High Interest Scam " is irresponsible, since no RATES (normal credit card or auto loan rates have been stated). Why don't you WAIT until the information is released, BEFORE you make accusations?

 

[3 Card]

Your statement, "sounds Like A High Interest Scam " is irresponsible, since no RATES (normal credit card or auto loan rates have been stated). Why don't you WAIT until the information is released, BEFORE you make accusations?

I pay my card in full monthly.. Tell me the name of a credit card that will carry a 7000 plus note with a minimun payment of 100 or so at cheap interest ..Hey dude I have a 770 ficco score, if I carry a blance it's high interest what do you think it will be for a person who puts a 100 bucks down on a car having a low credit or bad credit score.. read that response from Elio, "many will qualify".

 

[2.ooohhh]

3 Card, you are ASSUMING that the 7k will be a balance on the credit card which would NEVER get approved by a bank board. It will most likely be a secured loan with a linked gas card from the same bank. All that is needed is for the overage of the Card payment to be transferred to the loan account as a payment. So the fuel card might in fact have 24% interest while the secured loan has 4-5% only catch being now if you don't pay your fuel card balance you not only hurt your credit score you also go into default on your car note.

 

[3 Card]

3 Card, you are ASSUMING that the 7k will be a balance on the credit card which would NEVER get approved by a bank board. It will most likely be a secured loan with a linked gas card from the same bank. All that is needed is for the overage of the Card payment to be transferred to the loan account as a payment. So the fuel card might in fact have 24% interest while the secured loan has 4-5% only catch being now if you don't pay your fuel card balance you not only hurt your credit score you also go into default on your car note.

Read the email from Elio.. The card will be issued with the Balance of Your elio already on it plus 300 bucks xtra for fuel.. people will have to qualify for a card with a 7 k limit.. means a minimum of a 710 ficco score today and high interest..Something they should have mentioned to those who strugled to put up a 100 down,, don't ya think they should have done a credit check or at least told folks they must qualify.. I know it took them less than 24 hours to charge my card the 2 grand for mine.. I made 2 reservations..If the car is made I'll get mine, what do they tell those who gave them $$ and can't get financed?

 

[2.ooohhh]

You do realize you've asked a financial question to a PR person? Elio isn't financing these they are shopping for lenders to do that for them.

Until Elio announces a particular financial partner for this type of financing all the answers you have are just hearsay. When they do announce one you can ask your question to the finance company who I'm sure will be happy to oblige.

There is no banker in their right mind that would turn down a secured loan on a vehicle for a balance on a credit card. The reason credit cards carry such high interest are b/c they are almost completely unguarded from consumer default. When you finance a car the bank takes the title into it's possession and owns the car until you pay it off. Should you default they repo the car, auction it, and then go after you for any shortage.