ruffdog
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Learning experience....it is a question to ask before signing.
Be careful of LS "Financing"
- Thread starter chas0218
- Start date
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One thing you need to ascertain is if the Original Loan Maker and the Carrier of the loan now both filed a UCC-1 Financing Statement with the sate of NY. NY State will provide copies under the Freedom of Information since they treat the UCC-1 Financing Statement as Public Records. Block # 4 of the form filed by the lender with the states lists what is provided as collateral for the loan. It will state in this block # 4 if the loan is a PERSONAL CONTRACT or the collateral is a LS Tractor, model# ____Serial#______.
Uniform Commercial Code Forms, NYS Dept. of State
Supraman0614
Silver Member
It is illegal for a loan servicing company that operates in New York State to refuse early payments. Who is the loan company you were dealing with?
shooterdon
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The loan for my LS was spearheaded by my dealer with a local Credit Union. I needed a couple of months to transfer funds from my Canadian investments but paid it off without penalty. I made **** sure that would be the case by having a FTF meeting with the CU.
polarred21
Platinum Member
I would say thanks to OP for the alert here. Sounds like something buried in the fine print.
From my MF dealer visits they use AGCO financing so situation is different, BUT we have discussed in detail the differences in:
0% financing - payment is low, basically all interest built in up front and no discounts for early payoff.
4.54% financing- payment is very close the same as 0% payment and early payoff will discount the interest.
I guess best way to know is to ask this specific question up front and I always do. Also make your own amortization schedule and have the banks agree with it when asking about early payoff.
If the dealer didn't know, I guess you know what bank not to deal with now right?:thumbsup:
From my MF dealer visits they use AGCO financing so situation is different, BUT we have discussed in detail the differences in:
0% financing - payment is low, basically all interest built in up front and no discounts for early payoff.
4.54% financing- payment is very close the same as 0% payment and early payoff will discount the interest.
I guess best way to know is to ask this specific question up front and I always do. Also make your own amortization schedule and have the banks agree with it when asking about early payoff.
If the dealer didn't know, I guess you know what bank not to deal with now right?:thumbsup:
Most definitely, our problem is that we have only ever worked with our credit union and have taken very good care of us. I guess we were just used to having someone that had our best interests at heart.I would say thanks to OP for the alert here. Sounds like something buried in the fine print.
From my MF dealer visits they use AGCO financing so situation is different, BUT we have discussed in detail the differences in:
0% financing - payment is low, basically all interest built in up front and no discounts for early payoff.
4.54% financing- payment is very close the same as 0% payment and early payoff will discount the interest.
I guess best way to know is to ask this specific question up front and I always do. Also make your own amortization schedule and have the banks agree with it when asking about early payoff.
If the dealer didn't know, I guess you know what bank not to deal with now right?
4tillingdirt
Silver Member
Maybe I am missing something on this but if you have 0% financing how is the interest built in up front?
RSR
Platinum Member
It seems like most of the advice is, "make sure you ask up front." It seems like that's what the OP did, and got bad advice. It may not have been purposefully misleading, as much as an honest mistake by the dealer that wasn't even sure. It's hard to know.
For this reason, my approach on all legal contracts is, don't trust what others say. Read ALL the fine print yourself. If unsure, get legal advice that has your best interest in mind (i.e., not from the dealer).
For this reason, my approach on all legal contracts is, don't trust what others say. Read ALL the fine print yourself. If unsure, get legal advice that has your best interest in mind (i.e., not from the dealer).
Birdhunter1
Veteran Member
I have asked that exact question on every loan I have ever taken, can I pay more each month and will it go to principle, the answer has always been yes.
Fast forward to our house loan three years ago, had a mortgage at that bank since my first house in 2005, sold the first one, built my new place, never had a late payment and always paid about $50 extra per month.
My wife started auto payments every two weeks, when I am paid, paying 1/2 of our mortgage each paycheck, 1/2 of the truck payment etc....
Our locally owned bank merged with another locally owned, now a big locally owned bank system. One day Walter calls me and tells me I am 3 months late on my mortgage, I ask my wife what is going on and she prints out a statement from our checking account showing what we've paid.
Walter and I go round and round over the phone, I call up the bank VP and chew his ear over it, he vows to look into it and call me.
Next day bank VP calls me, very apologetic, took care of situation of us being in late payment status, promises it was not reported to my credit score etc etc etc. In the conversation I mentioned if F___ B___ were still alive (he was a founder of this bank), Walter would be out of a job and not working in this part of the state again for the way he treated me. Which then changed the whole conversation when I mentioned F____ B____ was like a wise uncle to me and mentor in the personal investment and financial decisions I make.
The bank has since seen the wisdom of my wifes decision to pay a bit over half each paycheck and no longer messes with us.
Fast forward to our house loan three years ago, had a mortgage at that bank since my first house in 2005, sold the first one, built my new place, never had a late payment and always paid about $50 extra per month.
My wife started auto payments every two weeks, when I am paid, paying 1/2 of our mortgage each paycheck, 1/2 of the truck payment etc....
Our locally owned bank merged with another locally owned, now a big locally owned bank system. One day Walter calls me and tells me I am 3 months late on my mortgage, I ask my wife what is going on and she prints out a statement from our checking account showing what we've paid.
Walter and I go round and round over the phone, I call up the bank VP and chew his ear over it, he vows to look into it and call me.
Next day bank VP calls me, very apologetic, took care of situation of us being in late payment status, promises it was not reported to my credit score etc etc etc. In the conversation I mentioned if F___ B___ were still alive (he was a founder of this bank), Walter would be out of a job and not working in this part of the state again for the way he treated me. Which then changed the whole conversation when I mentioned F____ B____ was like a wise uncle to me and mentor in the personal investment and financial decisions I make.
The bank has since seen the wisdom of my wifes decision to pay a bit over half each paycheck and no longer messes with us.