Happy Friday Elio’ers! We hope that you’ve been able to at least feign a sense of productivity this week, as the NCAA tournament is officially underway. Even if you’re not the biggest hoops fan around, you have to admit that the tournament is a lot of fun, from the Cinderella stories to the infinite drama. We hope you enjoy a full weekend of basketball!
You may have noticed that the last few Friday blogs have been from the archives. In case you missed it, we are currently in funding mode, and as a publicly traded company we are a bit limited in what we can communicate about our funding endeavors. As soon as we can share on the subject, we will be happy to pass that information on to the market. In the meantime, we will keep you informed and occasionally include an informative blog from the archives. We came across an article this week that we found interesting and thought that our supporters might find interesting as well.
In the past, we’ve talked about how car prices are getting out of control- which is part of the reason we’re on this journey to produce the Elio. It should come as no surprise that car loan payments are at all-time highs. According to Business Insider, “In the fourth quarter of 2018, the average car loan in the US was $545 a month for new cars and $387 a month for used vehicles. The average interest rate was 6.3%, also a decade high, according to the auto watcher Edmunds.”
The reason for shockingly high payments? America’s continued obsession with trucks and SUVs. From the article, “Americans have been buying more and more big cars. In the early 2010s, as Bloomberg reported, sales of trucks and SUVs started to overtake those of small and medium-size cars. Experts now forecast that by 2022 under 35% of new-car sales will be passenger vehicles and more than 65% will be trucks and SUVs.”
It’s clear that there will always be a place for trucks and SUVs. Many compact cars can’t fit plywood for home improvements or tow the boat to the lake on weekends. This is where we see the Elio fitting in. At our low base price, it will be affordable to have an Elio and keep your SUV or truck. Not only that, but the gas savings will likely save you money in the long run, even though you have two vehicles in your garage. Win win? We think so.
As always thanks for your support and have a mad weekend!