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 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?