We made it through Black Friday, Shop Small Saturday and Cyber Monday. Unless you completely unplugged from the television, radio, laptop and smartphone last week you were bombarded by holiday themed steals and deals leading up to the weekend. (Admittedly, we are just as guilty as any other marketer, as we launched a 50 percent bonus offer for <link to bonus page on website> non-refundable reservations on Black Friday!).
All this talk of discounts and deals got us thinking. We know $6,800 is a great offer for a brand new vehicle with a 3-year, 36,000-mile warranty. Throw in the fact that the Elio will get up to 84 MPG and it’s clear that the vehicle makes economic sense for millions of people.
But, just how good a deal is it? We set out to find some other interesting things that you can get for $6,800. Here’s some of what we found.
Want to spend $6,800 on education? We know our Elio fans aim high, so we’ll look at Harvard – where for slightly less than the price of an Elio you can attend for one month. It costs $240,000 for a four-year undergraduate degree. Assuming you’ll take summers off to take that Wall Street internship (or party at Nantucket all summer if the trust fund allows!), that means you are paying $60,000 over nine months, or $6,667 a month.
Even a public university is costly – Michigan State University, for example, costs nearly $100,000 for a four-year degree. For $6,800, you can go for one-half of one semester!
How about fashion? Thinking of picking up something nice for the office holiday party? Perhaps you can borrow Michelle Obama’s J. Mendal capsleeve jacket that she wore to Buckingham Palace in 2012. It was a mere $6,800!
Or perhaps you need a new watch…the John Varvatos Limited Edition Chronoscope watch goes for – you guessed it — $6,800!
Sports more your thing? If you and a buddy want season tickets to the worst team in the NBA, you can sit on the baseline and see all 41 Philadelphia 76ers home games for just $6,970.
Making a new vehicle affordable for the average family
We think all of those things are nice, in their own way (well, maybe not the Sixers’ tickets), but, clearly, the Elio is a better value. A comparable used vehicle gets you a mid-size car built in 2007 or 2008 with 100,000 or more miles and no warranty. Not to mention, those vehicles only get about 25 miles per gallon.
Today, the average price of a new vehicle is north of $30,000 and the average monthly payment is $470. What does it take to afford that payment? A general rule of thumb for most financial planners is that personal debt payments should not exceed 36 percent of total income. If a family has an average mortgage payment ($1,061 per month, according to Lending Tree) and two new vehicles ($470 each), their average monthly obligation would be $2,001. They would need a household income of $67,000 annually just to keep within the 36 percent level.
Replacing one of those vehicles with an Elio at roughly $150 per month would bring that family’s monthly obligation down to $1,681 and would make a mortgage and two new vehicles affordable to households with income of approximately $56,000. Obviously, this opens up new vehicle ownership to many more customers.
Whatever your shopping plans for this holiday season, we know there are myriad ways for you to spend your hard earned money. At Elio Motors, it’s our goal to make sure you get great value for what you spend. We hope you’ll agree that we’re on the right track.