Why Is Elio Already Offering Rebates?

[TexasElio]

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."

Thanks for your compliments...and yes...I'm a very happy automobile enthusiast that will undoubtedly own a Elio when & if it comes to market...I've built numerous "Hotrods & "Showcars"...and the Elio Vehicle will provide a great starting point for a cool project!

But...sorry to disappoint...not "Wayne"...or even Wayne's brother...or Wayne's cousin...

 

[Jim H]

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...

If you are this unhappy with Elio's progress or doubtful of the success the simple solutions is to keep your money and not to get involved. I'm certain your reservations would not make a difference one way or another. There is no reason for you to try to force your negativity on the rest of us.

 

[TexasElio]

If you are this unhappy with Elio's progress or doubtful of the success the simple solutions is to keep your money and not to get involved. I'm certain your reservations would not make a difference one way or another. There is no reason for you to try to force your negativity on the rest of us.

Good morning...hope you're having a great Christmas!

Objectivity should never be confused with negativity...

 

[RUCRAYZE]

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.

I fully agree with your approach, and I commend your reasoning and logic. With that said nobody coeirced you into this gamble, and just as all gamblers are not winners, walk away, with your integrity intact and seek other adventures . And if the Elio should work out, and you see the company is producing, and you need this vehicle, you can come back, and at that time limited risk on your "gamble" For sure NO ONE, knows for sure this will happen.
I missed Apple @ $20.00

 

[Jim H]

Good morning...hope you're having a great Christmas!

Objectivity should never be confused with negativity...

Let's not confuse objectionable and objectivity.

 

[TexasElio]

Let's not confuse objectionable and objectivity.

Seems reasonable...

Great garage photo...and is that a wall mounted rendering of a F40 above the Enzo?

 

[Jeff Bowlsby]

The math makes the Elio noteworthy and gives the Elio project credibility. From October re: the ATVM loan "Elio Motors announced that it will be seeking a loan of $185 million to “accelerate the company’s plans to begin production” of their enclosed tandem reverse trike next year [2015]."

12K that are All-In for $1000 = $12 million
25K that Want-In for ~$500 = $12 million
37K reservations generate = $24 million

185 million loan + 24 million reservations = over $200 million needed.

If the ATVM loan does not materialize, then the $185M needs to be raised privately.

The capital raised to date from reservations is significant financially as more than 10% of the amount needed. That is an excellent basis for a loan of this magnitude. I am not aware of any other car or similar venture that has generated any amount of pre-production interest, where individuals have ponied up this amount of capital, pretty much based on hope and faith alone, and a couple a cool prototypes.

More than the dollar value, the fact that ~40,000 people have shown confidence in the project with their money, 1/3 of which is non-refundable, speaks volumes. Solyndra, Fisker cannot attest to this. Elio is the Peoples Car of the 21st century.

Paul Elio and his team are genius and avant garde in their business and marketing approach, and merely using reasonable, conservative caution in bringing the Elio to market. A couple of high quality prototypes, that have toured the country, photographed in many parts of the USA, with real people touching and sitting in them, a considerable head of interest has been carefully generated, at relatively minimal cost. For a vehicle that solves real problems, conserves energy, puts American back to work, is economical to own and maintain, and looks fun to drive.

 

[CrimsonEclipse]

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?

Where are we going with this?
My Troll-o-meter is pegging and frankly I'm bored.
The potential for risk has been discussed, beaten, buried, dug up, beaten, and buried again.
You have either chosen to not read this forum or you have chosen to rile up the masses.
Judging by the number of responses, your troll was successful.

the vehicle DOES NOT EXIST
YOU CANNOT GIVE BONUSES
FOR something which does not exist !
it was/is simply another way to continue raising investment dollars and raise the total number of individuals who support the ElioMobile !
BRILLIANT IDEA !
I am NOT a financial genius, but what about converting all the NON-REFUNDABLE to totally refundable ? and raise the limit to $6800. ??
and give $1000. toward customizing ?
more money would come in
probably kickstart the people on the fence and double the 37,000
and if it does not work Bankruptcy will eliminate all debt so you can try again !
didn't all the big auto makers do this ???

I'm not really sure what this one is about.
The logic that prototype car ≠ bonus is... well... silly and lacking logic.

But if it will make you guys feel better:

MY GOODNESS!!! They are right!! I have wasted my $1000 and will never get it back again.
What have I done with my life?!
I'm such a FAILURE!!
BOO HOO HOO HOO!!!!! (sobs)

There, you've showed me the light.
My soul is crushed.

Merry Christmas
(or whatever)

 

[Rickb]

Where are we going with this?
My Troll-o-meter is pegging and frankly I'm bored.
The potential for risk has been discussed, beaten, buried, dug up, beaten, and buried again.
You have either chosen to not read this forum or you have chosen to rile up the masses.
Judging by the number of responses, your troll was successful.



I'm not really sure what this one is about.
The logic that prototype car ≠ bonus is... well... silly and lacking logic.

But if it will make you guys feel better:

MY GOODNESS!!! They are right!! I have wasted my $1000 and will never get it back again.
What have I done with my life?!
I'm such a FAILURE!!
BOO HOO HOO HOO!!!!! (sobs)

There, you've showed me the light.
My soul is crushed.

Merry Christmas
(or whatever)

 

[EZ]

Where are we going with this?
My Troll-o-meter is pegging and frankly I'm bored.
The potential for risk has been discussed, beaten, buried, dug up, beaten, and buried again.
You have either chosen to not read this forum or you have chosen to rile up the masses.
Judging by the number of responses, your troll was successful.

what do you basin with a personal attack ?
no one is impressed
stick to the topic, ElioMobile



I'm not really sure what this one is about.
The logic that prototype car ≠ bonus is... well... silly and lacking logic.

But if it will make you guys feel better:

MY GOODNESS!!! They are right!! I have wasted my $1000 and will never get it back again.
What have I done with my life?!
I'm such a FAILURE!!
BOO HOO HOO HOO!!!!! (sobs)

There, you've showed me the light.
My soul is crushed.

Merry Christmas
(or whatever)