Financing Agicredit Precomputed Loan

[k0ua]

I'm looking at buying a Kioti. Had the deal all worked and was told it was a simple interest loan. When I got to the finance contract it was a Precomputed Interest Loan.

Agicredit Acceptance LLC is the company.

I plan on paying the loan off in less than a year.

Agicredit and the salesman both tell me I would not have to pay the full precomputed intrest ($4,200) but only the actual amount of intrest accrued through time of payoff.

Anybody have experience with this situation and this company?

Yes, I paid off early with no penalty. No problems with Agricredit.

 

[GuadGrassfed]

My experience was different. I called the company MANY times over about three days last May, and at the lower level got a lot of clueless responses. People were polite, but they didn't understand financing terms. I tried to elevate my inquiries to management and (finally) got a few responses, but it took time and I was waiting to close on my tractor.

Basically, in so many words, I was finally told that my financing was precomputed. A lot of folks including my dealer really didn't understand it at all and told me there were "no penalties", but what that meant to them was no extra fees. I was planning to pay off the note in two years but decided to pay cash instead.

The crazy thing is I couldn't get any real paperwork out of them besides a flimsy one page contract that was super-vague. I'm an MBA and worked in finance for two decades and I understand terms like "rule of 78s" and precomputed interest, etc. Nobody on the front lines of that company can speak to these issues with any confidence. Even the managers I finally spoke with were evasive, in my opinion, and I had real trouble reaching them.

I'm glad to hear others did not have a bad experience. Perhaps some dealers get different financing programs. Personally, I am wary given my experience.

 

[k0ua]

It is simple interest, you do not use rule of 78's, There are no penalties or fees for early payoff.. You made way too big a deal out of this. And yes you were way overqualified and the people you talked to did not understand.

 

[GuadGrassfed]

It is simple interest, you do not use rule of 78's, There are no penalties or fees for early payoff.. You made way too big a deal out of this. And yes you were way overqualified and the people you talked to did not understand.

The offer I received from AgriCredit was precomputed interest and they were difficult to deal with. I am glad to hear that hasn't been the case for everyone.