Happy Friday Elio’ers! When we talk about the Elio’s ultra-low base price, the conversation inevitably turns to the topic of payment options. As we continue to focus on the next round of funding, this week’s Friday Blog from the archive is going to cover our unique financing plan. Just so we’re all on the same page, we’ll start out with the basics and then get into the nitty-gritty details.
The genesis of this 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:
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 a number of 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 spectacular weekend!