Be careful of LS "Financing"

[chas0218]

So the wife and I signed on the line in January. The tractor has been great but not so much the finance company. When you get the "financing" it is a contract not a loan so when you want to pay down the principle they just apply it to your payments. So in reality you are still paying all of the interest just up front. We didn't know this nor did our dealer tell us it wasn't a loan but a contract. Not sure he even knows to be honest. We ended up getting a personal loan and paying off the "contract". I mean if you don't mind just paying your monthly payment every month until your term is done then you don't have anything to worry about. If you are like me and would like to pay off loans before then do anything you can to secure financing through another outlet.

Just some advice from a guy you don't know but doesn't like getting screwed.

 

[murphy1244]

So the wife and I signed on the line in January. The tractor has been great but not so much the finance company. When you get the "financing" it is a contract not a loan so when you want to pay down the principle they just apply it to your payments. So in reality you are still paying all of the interest just up front. We didn't know this nor did our dealer tell us it wasn't a loan but a contract. Not sure he even knows to be honest. We ended up getting a personal loan and paying off the "contract". I mean if you don't mind just paying your monthly payment every month until your term is done then you don't have anything to worry about. If you are like me and would like to pay off loans before then do anything you can to secure financing through another outlet.

Just some advice from a guy you don't know but doesn't like getting screwed.

Same as most car loans.

 

[chas0218]

Same as most car loans.

No it isn't, I can pay the principle down in a car loan not in this contract. A loan is a loan of money, what LS is doing isn't a loan it is a contract.

 

[Trillium Farm]

It actually IS a loan, not all loans allow for prepayment, it's all in the fine print. I'm in the same boat with Toyota financing, wanted to make a balloon payment on the principal, but it would not have reduced the interest shown on the loan, only the loan would have been paid sooner so for me there was no advantage and stayed with the loan.

 

[Trillium Farm]

No it isn't, I can pay the principle down in a car loan not in this contract. A loan is a loan of money, what LS is doing isn't a loan it is a contract.

I think you are confused, no disrespect meant. Any advance of money to be repaid IS A LOAN the amount of time and the rate of interest is a contract and the articles as laid out on the loan are the terms.

 

[Diggin It]

I'm not aware that LS does financing, at least not from corporate. Unless this is something new, they have the dealers arrange it. In my case, I got a variable rate that has dropped considerably lately and I can (and have) made 'Principle Only' payments.

 

[LS Tractor Owner]

Diggin it is correct. LS does not do any financing. All loans / financing is done through third parties, usually arranged by the dealer. When I purchased and financed a tractor from Colorado, the loan was through a credit union in Wyoming. When I purchased in Texas, the financing went through a national bank (which was offering special interest rates for equipment purchases).

I wouldn’t bash LS, but more of your dealer. They knew what the program / financing was.

 

[CobyRupert]

Diggin it is correct. LS does not do any financing. All loans / financing is done through third parties....

I wouldn’t bash LS, but more of your dealer. They knew what the program / financing was.

All signatories had the opportunity to know what the program / financing (”contract”) was.

 

[chas0218]

All signatories had the opportunity to know what the program / financing (”contract”) was.

Yes and no, when we asked about the financing we were told the conditions that weren't what the conditions were. So bad on us for trusting someone.

The contract was through Wells Fargo. We were told by Wells Fargo that this was not a loan because there was no collateral but is considered a contract. With car loan financing the collateral is the car. Either way Wells Fargo and their terms are asinine not allowing payments on principle. Our bank was a little taken back when we told them of this.

When it comes to any company you're only as good as the companies you're affiliated with.

 

[chas0218]

Diggin it is correct. LS does not do any financing. All loans / financing is done through third parties, usually arranged by the dealer. When I purchased and financed a tractor from Colorado, the loan was through a credit union in Wyoming. When I purchased in Texas, the financing went through a national bank (which was offering special interest rates for equipment purchases).

I wouldn’t bash LS, but more of your dealer. They knew what the program / financing was.

To be honest I'm not sure he understood it. He said he was able to pay off his tractor in a little over a year but probably also paid all of the interest for the whatever the length of loan he had.