Happy Friday Elio’ers! If you’re like us, you’ve had a tremendously busy week and are ready for a bit of a weekend respite. In case you missed it, earlier this week we sent out a funding-related press release. As we’re deep into the process this week, today’s Friday Blog is from the archives and covers an important topic: financing the Elio. We’re cognizant of the fact that this topic is known inside and out by some of our longtime supporters, but every day there is a huge group of folks who are just now finding out about us.
The genesis of our financing plan is centered on the economics of the Elio (ultra-low cost and high mileage) and the average miles per gallon of a vehicle on the road today. The average vehicle on the road today gets around 21 MPG, on average, while the Elio is targeting over three times that amount. This means that the Elio should cost the average driver 1/3 of their current spend for fuel to drive the same miles.
Basically, we call this financing option “Have your gas savings make your payment.” If you choose this program, you will receive a special Elio Motors credit card when you pick up your new Elio. Each time you stop at a gas station, you will use the Elio Motors credit card to pay for the gas and the card. Your credit card statement, however, will reflect the gas purchase as 3 times the purchase amount. You are used to paying the higher amount for gas, so you don’t feel it in your pocket, but you end up with a new, warrantied vehicle in the process!
So, for example, let’s say that you spend $20 on gas to fill up your tank. The card will be charged a total of $60. Why the $60? $20 is going to the oil company and the remaining $40 goes toward the balance of your vehicle. So, thus the name, the money you would otherwise be spending on gas is paying for your new ride!
Here are some great questions that frequently come in about the program: What kind of credit will I need to qualify?
Q: What kind of credit will I need to qualify?
We are focused on making the Elio, but the partner we choose to supply the credit card will make this determination. There, of course, will be some creditworthiness requirements, but we believe that with our ultra-low base price that a wide range of credit scores will qualify. We know logically that more people can qualify for $7,000 loan than for a new car costing over $30,000.
Q: Will there be a minimum payment?
Yes, there will need to be a minimum amount paid toward the loan amount every month, regardless of gas purchases. The minimum amount will depend on several factors and will be available in the coming months.
Q: Can I use the credit card when I fill up my other vehicles? What about other purchases?
That detail is yet to be finalized, but we anticipate the answer to be yes, you can use the card whenever you like! Important to note however that the card will work the same for all purchases. All purchases will be charged 3X the amount, with 2/3rds of the purchase going toward the payment of your Elio.
Q: Can I opt for different payment options, or even just pay in cash?
Absolutely you can pay in cash! Additionally, we will have traditional financing options available, so you have options on how to best finance your Elio.
Thanks for your support and have a rewarding weekend!