Why Is Elio Already Offering Rebates?

[Craig]

Merry Christmas to everyone!

I was reviewing Elio's website yesterday...and could not help but notice they're offering incentives (rebates) to promote per-orders.

After spending 30 years in the automotive industry...it's highly unusual that a vehicle manufacture would ever start discounting a new line of vehicle before they are in production!

Every price incentive (rebate) is done for a reason...manufacturers are not in the business of giving away money for nothing.

So...why would Elio be offering this generous financial incentive...and why only on non-refundable deposits?

Is this rebate a signal that Elio Motors is starting to feel a noticeable slowdown in the rate of new pre-orders...or a sign that the current cash flow is not meeting operating & vehicle development expenses?

Selling a $6,800 vehicle for $6,300 before it even coming to market would not seem to make prudent economic sense...it's tough enough to have a decent profit margin on a $6,800 vehicle.

When a automobile manufacture starts offering rebates...it's usually an indication that consumer demand is weak...

Wow...this is a very interesting scenario...what does everyone think?

I smell sh#t soup.

 

[Rickb]

TE strikes again.............and on Christmas Eve.

 

[EZ]

MERRY CHRISTMAS

NOT photoshop !!!

 

[EZ]

View attachment 3975I smell sh#t soup.

i think you are 100% CORRECTAMUNDO !
i believe they are scrambling doing EVERYTHING POSSIBLE TO MAKE THIS HAPPEN !
either the GOVERNMENT LOAN
or
40,000 investors

can be the needed lifeline ,

HOW BAD DO YOU Want your ELIOMOBILE ? ?

 

[satx]

While hoping for that $185M govt loan (as I am), Elio is trying to attract more cash from purchaser reservations, increasing its credibility to a Fisker-burned govt (no doubt the Repugs and right-wing hate media will trash Elio as un-American, needing nanny-ing by the hated govt), and of course increasing cash flow.

More reservations means more buzz, word-of-mouth.

Website doesn't say how long the $500-off "holiday" deal lasts.

The discount is also a way to measure price elasticity, to get fence-sitters to jump, to measure how many fence sitters, if any.

 

[ecdriver711]

You want people to put down money for for an extended period of time, you offer an incentive to do so. It's not magic.

 

[Gas-Powered Awesome]

HOW BAD DO YOU Want your ELIOMOBILE ? ?

Bad enough that I gambled $1000 of my hard-earned money on it.

 

[outsydthebox]

I Think you are not in any way interested in our comments. I can read your opinions on the Geo forum if I cared for your wisdom.

Very well said! I think "tex" portrays himself as a happy guy just asking questions. I think you are 100% correct, tho. I think his sole purpose for being here..... to raise doubt. Much more effective than "being Wayne."

 

[TexasElio]

What you are missing is that Elio Motors is not providing incentives to secure orders for an existing vehicle but instead providing an incentive for people to put money down in advance instead of simply waiting on the sidelines and watching such as you have told us you have chosen to do.

30 years in the automobile industry has taught me to examine any new vehicle with a judicious eye before making the purchase...with less than 40,000 reservations and a (proclaimed) production rate of 200K+...it shouldn't take long to get your Elio Vehicle even without a pre-order...the second year of production will allow for further refinement of the Elio Vehicle...

There is a long list of vehicles that have come to market with the best of intentions...but they never worked out in the real world in terms of functionality & desirability...lots of "lemons" in annals of automotive history...

And automotive rebates (incentives ) have a history of become more aggressive with time...so possibly a $6,000 base price Elio if a person is patient...

 

[electroken]

Gambled?

Yes. Until an Elio is sitting in my driveway, gambling is exactly what I've done with my $1000.