Waffling On Base Price. Can They Make $6,800?

[RUCRAYZE]

well it's I/IV/MMXVI, XXVII degrees, and X:XXXII, time to turn in and don't forget to watch Super Bowl "L" :-)

 

[Sethodine]

and how do the incentives factor in??

I think I remember reading that the incentives will simply cut into the profit margin, however that ends up working in the end. Call it a no-intrest loan taken against the future

 

[3wheelin]

Going back to Ekh's original post, I'd say:
$6,800 - Keep dreamin'
7,000 - FUHGETABOUTIT!
7,200 - It's a long shot!
7,500 - We're getting somewhere...

7,500+ Just build the darn thing & I'll pay whatever

 

[cantwait]

I think I remember reading that the incentives will simply cut into the profit margin, however that ends up working in the end. Call it a no-intrest loan taken against the future

What do you mean by "no-interest"?

Assuming that production starts in early 2017, Elio will be paying $850 in interest to those who reserved for $1000 in early 2013, which works out to about 16.6% APR, compounded annually over 4 years. The effective rate would vary, based on the date of the reservation, the applicable bonus percentage, and the final production date.

For someone reserving now, and taking delivery 6 months after an early 2017 production start date, Elio would be paying about 30% APR, compounded annually.

From an accounting standpoint, both the reservation and bonus amounts will eat into / reduce Elio's cash flow at the time sale, but only the bonus will eat into profit.

 

[Sethodine]

What do you mean by "no-interest"?

Assuming that production starts in early 2017, Elio will be paying $850 in interest to those who reserved for $1000 in early 2013, which works out to about 16.6% APR, compounded annually over 4 years. The effective rate would vary, based on the date of the reservation, the applicable bonus percentage, and the final production date.

For someone reserving now, and taking delivery 6 months after an early 2017 production start date, Elio would be paying about 30% APR, compounded annually.

From an accounting standpoint, both the reservation and bonus amounts will eat into / reduce Elio's cash flow at the time sale, but only the bonus will eat into profit.

I guess by "no interest" I meant "I'm not interested in trying to do the math"

I don't know. I wasn't really thinking straight, because clearly the cut out of their profit margin would be "interest".

 

[Texconsin]

Starting from $6800. No one is paying just $6800.

Destination charge $$$
Sales Tax 0 to $$$
Licensing Fees $$$
Document fees $$$

The base model covers my needs and wants. but I know I'm not its not gonna be 6800 on the nose to start. I'm looking realistically at around 8500 to 9000.

My destination is the Shreveport assembly line. I'll make an adventure out of it from and back to Katy, Texas.

 

[Maurtis]

My destination is the Shreveport assembly line. I'll make an adventure out of it from and back to Katy, Texas.

Great idea! I may do the same if possible. Not the ideal way to break in the motor with an 85 MPH sprint on I-20 and I-35, but seeing the plant and then taking my time and navigating the back roads sounds like a great plan. Depends on how much of a pain it is to buy the car in LA but register it in TX.

Regarding the price, I always thought the $6,800 base price was ambitious. If I can get mine with a manual transmission, decent stereo, and seat warmer out the door for under $10k I will be absurdly happy. And a few years down the road, drop in a turbo kit which someone will surely make!

 

[Rickb]

With so many future Elio Owners saying they will be willing and happy as clams paying $10K for a base Elio, and never believed $6800 was possible, we can rest assured that EM's target price will move much farther from $6800 and much closer to $10K with reservationists so eager to pay more. Now many are willing to pay even more for the $6800 Elio we can't currently purchase in Elioville. After such a long wait any price will do?

After looking at the P5 build and specifications $6800 is right on. Please stop offering more unless you are bidding to buy my 1st production run Elio.

 

[Maurtis]

I skipped a few of the pages, but are others saying they would be happy with a base price of $10k? I mentioned being happy with mine optioned as I want it and out the door "tax, tag, title, fees" for under $10k. I would not think anyone here would be happy with a base of $10k.

 

[Elio Amazed]

With so many future Elio Owners saying they will be willing and happy as clams paying $10K for a base Elio, and never believed $6800 was possible, we can rest assured that EM's target price will move much farther from $6800 and much closer to $10K with reservationists so eager to pay more. Now many are willing to pay even more for the $6800 Elio we can't currently purchase in Elioville. After such a long wait any price will do?

After looking at the P5 build and specifications $6800 is right on. Please stop offering more unless you are bidding to buy my 1st production run Elio.

I'll not dwell on the technicalities.
I will say that I absolutely agree with the direction of your thought process here.
I, for one, would like my base price to be the targeted base price, thank you very much.

I have very strong feelings about it.

It would certainly be refreshing in this age of bait-and-switch and flim-flam.
It would have the effect of solidifying an even larger fan base that could last for quite some time.