Financing Agicredit Precomputed Loan

[land surveyor]

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?

 

[MinnesotaEric]

It sounds like they showed you an amortization sheet, required by law, that tells you the totals you'll pay if you carry the note to full term (principle plus interest).

What you want to ask is if there is a pre-payment penalty. If not, and you're comfortable with the interest rate, fees and whatever else they snuck in to arrive at the final APR rate, then go for it.

To pay a note off early, you simply contact the lender and ask for the payoff total. You'll get a total and a date in which you need to get your payment to them by and that is that.

 

[VictorW]

I had used agricredit about nine years ago and did pay off early with no penalty but that doesn't mean you have the same contract. As mentioned, it's law that they show you the total amount paid over the course of the loan if just making the scheduled payments. Read the full copy of the contract. Somewhere in the contract, it should say there is or is not a pre-payment or early pay-off penalty. What's in print is what means something. Not what someone advises but I would hope they are telling you the truth. If you're not sure, take the contract to someone who understands the legal jargon.

 

[SCWOOD]

I think you will be OK! Just made my first payment on my CK2510 with Agicredit. The payment book says to contact them for payoff amount.I set up direct withdraw & called them to verify. Very fast service & very helpful.

 

[Gary in NJ]

I payed of my Agricredit loan after only two payments. No penalty.

 

[grm61]

Agricredit....good folks:thumbsup:

 

[Stix]

I have them now and just called today. Payoff no penalty. Really nice people.

 

[Maka]

This was a common question of many of our customers who financed their tractor through Agricredit. They never charged a penalty for paying off the loan early. They are a good company.

 

[Grant1]

I'm not sure why they do it that way but it does work out the same. I have had 3 Agcredit loans and have paid the first 2 off early with no penalty

 

[TSO]

AgriCredit is actually owned by AGCO (who own Massey, etc)... Just FYI, I found that interesting.

I have used AgriCredit several times, very nice to work with. As Eric pointed out, that is just an example of the interest paid if the loan went full term.

As far as I know, you can pay off the remaining principal balance at any time without penalty (and without owing remaining interest).

 

[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.