mahindra finance 0% / 84 month question

   / mahindra finance 0% / 84 month question #1  

tmcj

Gold Member
Joined
Mar 31, 2016
Messages
315
Location
Imler, Pa
Tractor
Mahindra Max 26XL
I've done a lot of reading on here about this and there are obviously lots of other folks that went with this financing option also, but I have a question that I have not seen an answer to. This may well require a phone call to Mahindra finance to answer but I'm curious if anyone else has dealt with this.

I bought my tractor in '16 and went with the 0% / 84 month option for financing. At the time it gave me the lowest payment with 0 down, which was great. (something the wife would agree to). I understand the whole thing of 0% vs added up front costs, etc., they get you either coming or going, doesn't matter. Nothing is truly 0%. I also understand that with this plan making any extra payment amounts will not save anything in the end, as in a typical extra principle payment vs saving interest costs etc. Mahindra Finance simply applies the extra amount paid towards future payments. That being said, my goal is to get out of this debt sooner and not have it hanging over my head, simply to eliminate debt with various loans and monthly payments. I currently have about 8 months paid ahead according to my account info, and if I continue on this path will have the tractor paid off roughly 2 years early.

So here is my question...when I get to the point of not having to make a monthly payment due to being paid ahead, will Mahindra Finance consider it paid in full, or just deduct payments on a monthly basis until the 84 month time frame has been fulfilled? I wouldn't have to come up with the money each month but would prefer to have it paid off and be done than have it hang around and still show as a debt.

I'm just curious if anyone else has been down this road with Mahindra Finance before. If not, I suppose I'll have to call them up and get some details.
 
   / mahindra finance 0% / 84 month question #2  
I didn't finance my tractor so I can't directly answer your question but here are my thoughts.

If you made all 84 full payments, the tractor is paid off regardless of whether they still apply the payments monthly or all at once. I would imagine they will show the loan paid off, what incentive do they have to keep it open?

The question in my mind though, my understanding is insurance comes along with the financing so will the insurance still be active for the full 84 months or are they going to refund any amount that would have gone towards the insurance due to you paying it off early. Your financing contract will probably answer these questions but you may need to give them a call.
 
   / mahindra finance 0% / 84 month question
  • Thread Starter
#3  
Yeah thats a good point with the insurance. I'll have to look into that one.
 
   / mahindra finance 0% / 84 month question #4  
ya - the orange dealer close by compared to mahindra 64 miles away - had so many different subset clauses and insurance and doublespeak and as i was trying to pay cash - the price went up - insurance stuff he never mentioned until last minute. things were too sketchy by the owner and head sales guy i said bye bye! it was a terrible experience. my mahindra was better but still not a cup of tea.
 
   / mahindra finance 0% / 84 month question #5  
When I bought mine at 0% for 60, they said I could pay it off sooner, but since it's 0% it wouldn't matter... Didn't mention a penalty when I asked. The trick was, they got a few grand more up front vs the cash price. I think the cash price was 3-4k less, so they get their interest one way or another.

I wouldn't think there would be a penalty for prepayment, I just don't think there is a huge appeal since it's 0% so you won't save money on interest payments.
 
   / mahindra finance 0% / 84 month question #6  
Not tractor-related, but banking/ debt payment related...

Even though you are paid ahead and--seemingly--not in danger of default...please be careful

The banks like their steady inflow of money. They depend on those monthly credits on their ledgers to operate properly.

If you skip a regularly scheduled payment--even though you are technically paid ahead--it could "bite you on the bum".

Once upon a time, I made my monthly payment too early. It showed as 2 payments in the previous month.

Unbelievably (to me) they considered it as No Payment the following month! They said I missed the payment in that monthly cycle.

A phone call cleared-up the issue, but I learned a valuable lesson: The beast needs to be fed on a regular schedule.

I guess I get grumpy too, if I miss a meal. Hope this helps. Hope this even makes sense?

:tractor: ding beep
 
   / mahindra finance 0% / 84 month question
  • Thread Starter
#7  
Makes perfect sense and thanks for the warning.
 
   / mahindra finance 0% / 84 month question #8  
Sheffield finances tractors and if you pay two payments ahead, if you want to, you could skip the next one and still be even. I liked financing through Sheffield. I have not had any problems with Mahindra, but I wait to make a payment for the month until they have sent me my invoice. That way I know I will not pay early.
Can anyone tell me if 44 hours is counted as a lot of hours on a Mahindra MAX 24 tractor? I am trying to sell mine. How can you tell if a tractor is four wheel drive?
 
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   / mahindra finance 0% / 84 month question #9  
Sheffield finances tractors and if you pay two payments ahead, if you want to, you could skip the next one and still be even. I liked financing through Sheffield. I have not had any problems with Mahindra, but I wait to make a payment for the month until they have sent me my invoice. That way I know I will not pay early.
Can anyone tell me if 44 hours is counted as a lot of hours on a Mahindra MAX 24 tractor? I am trying to sell mine. How can you tell if a tractor is four wheel drive?

44 is almost brand new to most.

You should be 4wd, but there should be some sort of engagement option around the seat or dash area. On my 2638 it is a level you pull up to the left of your seat down low.
 
   / mahindra finance 0% / 84 month question #10  
44 is almost brand new to most.

You should be 4wd, but there should be some sort of engagement option around the seat or dash area. On my 2638 it is a level you pull up to the left of your seat down low.

Yes, I never did touch those but a man came and looked at my tractor yesterday and he showed me the yellow topped handles on the left side he said was 4wheel drive. I was hoping he would buy it but he said he was trying to find one with a mower. He said if he did not find one he wanted he would come back and get mine. He said mine was well worth what I was asking for it but it needed some attachments besides a loader.

Thanks for getting back to me.
 
 
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