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  #1  
Old 06-19-2010, 09:47 AM
jaywmu08 jaywmu08 is offline
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Default paying off ranger!

i'm in a position where i'm fortunate enough to be able to pay off my truck. i bought it used a few years ago from the dealer, financed it through a large bank. i remember when signing the papers seeing the price i was agreeing to pay for the truck, and the amount of money i would spend after paying off the truck and interest.......a disgusting amount of interest. But, as i get ready to get rid of this monthly payment i was just thinking.... i wonder if the bank would accept alittle less than what i owe to pay this off. my current payoff is around 9,800, would they 9,000. or even 8,500. i know its a long shot but it doesn't hurt to ask, you never know. Does anyone have any experiance with this, or opinions?
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  #2  
Old 06-19-2010, 10:35 AM
ranger5572 ranger5572 is offline
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Default Re: paying off ranger!

I never thought to ask my bank something like that. My last payment is August.
I know that the pay-off, if you called in and that's what they gave you, is $9800, then that number doesn't include interest for the rest of the loan, which is why it's only good for 10 days they usually say. So, therefore, you're already getting a bit of a break, saving the interest, and they are losing out on money that they expected to get over the life of the loan in interest, I doubt they'd take any extra off. Like you said, it doesn't hurt to ask, but still I don't think I would.
The overall amount you'd save depends on the months left on the loan, and the % of the loan. $9800? I'm guessing 3yrs. Is saving $300 a month for 3 yrs worth losing $10000 in cash-on-hand? I'd say pay the $300/mo, pay your note, build a tad of credit and use that money to build a little safety net for yourself...If you can part with that $10000, put $5000 in a 2-year CD and forget you have it, until it matures. It'll work for you a lot better that way than having a paid-for truck. And three years down the road, the truck will be paid for and you'll still have that $10000+interest earned to use to mod it with, or fix it.
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  #3  
Old 06-19-2010, 10:55 AM
Ranger Sport Ranger Sport is offline
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Default Re: paying off ranger!

Screw banks.

I paid cash, that's how i roll.






Lol j/k, but i did.
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  #4  
Old 06-19-2010, 11:23 AM
Tom Tom is offline
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Default Re: paying off ranger!

I would doubt it. A bank exists to profit off of customers like yourself. Giving you $1,300 for paying it off early does A) Ensures they won't be getting their monthly profit from you. B) Will likely mean this whole ordeal cost them money.
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  #5  
Old 06-19-2010, 01:26 PM
jutautodesign jutautodesign is offline
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Default Re: paying off ranger!

I like paying for everything I can in cash. It gives ppl less of an opportunity to take advantage of ur situation.
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  #6  
Old 06-19-2010, 01:35 PM
Erock Erock is offline
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Default Re: paying off ranger!

Ummm... Have you watched the news in the last year and a half? With the banks having to get bailed out, I'd say you have a snowballs chance in hell of getting any money knocked off the balance.
My advise would be: Now that you have hopefully established a decent credit score, refinance your balance at a lower interest rate, and shorten the term, say from 3 years to 2. This would get you out of the payment quicker than your original loan and still save you a few bucks. NOTE: Some loans require you to pay the full amount PLUs interest... even if you pay it off early. Read your loan papers to check. I like to deal with credit unions. They don't seem to have as many fees and crap that banks have.
I agree with the other advise about investing some of that money if you happen to have $10k laying around. Much easier having the cash if something unexpected comes up than it would be to try and sell the truck to get your money.
Good luck. Looks like you are doing a decent job of managing your money if you have that much saved.
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  #7  
Old 06-19-2010, 04:47 PM
Areyouforcereal? Areyouforcereal? is offline
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Default Re: paying off ranger!

I say Pay it off. Then you can save whatever you were paying every month. Not sure what the insurance laws are in you area, or what you loan details are, but i know that I am required to have full coverage while I'm still paying for the truck. Once it's paid for I can drop it to liabillity only. (the state minimum). That alone would make me pay off the truck faster if I could.
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  #8  
Old 06-19-2010, 05:20 PM
jaywmu08 jaywmu08 is offline
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Default Re: paying off ranger!

either way i'm definitely paying it off, my thinking is this truck loan is the biggest "bad" debt that i have. After this is payed off then the 350.00 a month that would usually go towards this will go towards a small credit card balance i owe. my other debt is "good" debt...house, student loan, not to worried about that. i was just thinking that the bank is a business and if they had a chance to get one large payment to settle a debt they may be willing to forgive a very small amount of the loan. debt consolidation business's try to do this all the time. it was just an idea i had, ill ask, maybe i'll be surprised......also i completely agree with putting some money aside for a cushion. That was done first. I listen to dave ramsey
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  #9  
Old 06-19-2010, 06:36 PM
Ranger Sport Ranger Sport is offline
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Default Re: paying off ranger!

Quote:
Originally Posted by jaywmu08 View Post
either way i'm definitely paying it off, my thinking is this truck loan is the biggest "bad" debt that i have. After this is payed off then the 350.00 a month that would usually go towards this will go towards a small credit card balance i owe. my other debt is "good" debt...house, student loan, not to worried about that. i was just thinking that the bank is a business and if they had a chance to get one large payment to settle a debt they may be willing to forgive a very small amount of the loan. debt consolidation business's try to do this all the time. it was just an idea i had, ill ask, maybe i'll be surprised......also i completely agree with putting some money aside for a cushion. That was done first. I listen to dave ramsey
They usually succeed reducing the payouts by burning your credit for years to come, clients aren't usually told that in ads.

The only thing i could see you saving is some of the interests, but that depends on what kind of loan you originally signed. Banks will not reduce on the capital just because you pay ahead of time, that makes no sense.

Oh and technically, a truck debt is a good debt, it shows that you can keep payments on time, and take care of the truck itself. It's a great way to bring your credit score up.
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  #10  
Old 06-19-2010, 07:11 PM
jaywmu08 jaywmu08 is offline
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Default Re: paying off ranger!

Paying a bank over 10,000 in interest over the coarse of my loan so that i can have the pleasure of borrowing their money is not good debt. there are cheaper and more sane ways to improve a credit score. i was stupid to get a six year loan in the first place, i just wanted lower payments and the truck was really shiny at the dealers lot, it had to come home with me
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  #11  
Old 06-19-2010, 07:28 PM
Ranger Sport Ranger Sport is offline
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Default Re: paying off ranger!

Quote:
Originally Posted by jaywmu08 View Post
Paying a bank over 10,000 in interest over the coarse of my loan so that i can have the pleasure of borrowing their money is not good debt. there are cheaper and more sane ways to improve a credit score. i was stupid to get a six year loan in the first place, i just wanted lower payments and the truck was really shiny at the dealers lot, it had to come home with me
Well i don't know about your state, but "second chance credit" here (aka deadbeats with horrid credit) pay anywhere between 20-43% interest, and they don't usually have access to new cars at higher cost, 10k seems a bit high to pay in 6 years time.

The only cheaper way to improve credit is with credit cards and payment plans on furniture for example, but it also shows you rely on credit purchase stuff, which also hinders your chances to new source of credit.
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  #12  
Old 06-20-2010, 12:20 PM
ranger5572 ranger5572 is offline
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Default Re: paying off ranger!

Quote:
Originally Posted by jaywmu08 View Post
Paying a bank over 10,000 in interest over the coarse of my loan so that i can have the pleasure of borrowing their money is not good debt. there are cheaper and more sane ways to improve a credit score. i was stupid to get a six year loan in the first place, i just wanted lower payments and the truck was really shiny at the dealers lot, it had to come home with me
Dude, there is no way you'd pay $10,000 in interest on a 6 year loan unless you're paying 45-60% interest...My truck was a 6 year loan at 6% and the total interest was nowhere near that! And a vehicle loan is good debt unless you get got by the dealer cause you're a fool who took on a 50% APR vehicle loan. Good luck to you.
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  #13  
Old 06-20-2010, 01:32 PM
Ranger01 Ranger01 is offline
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Default Re: paying off ranger!

They might do it. Working with repossession companies i have talked to many banks. Well if the situation was you missed a few payments and they want to repossess it you can talk to them and they will negotiate with you to pay the car off because that's the last thing they want is the car. They will get like 1/4 of what it's worth so they would rather you pay it off. I don't know if the banks will take lower in other cases
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  #14  
Old 06-20-2010, 02:15 PM
Ranger Sport Ranger Sport is offline
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Default Re: paying off ranger!

Quote:
Originally Posted by Ranger01 View Post
They might do it. Working with repossession companies i have talked to many banks. Well if the situation was you missed a few payments and they want to repossess it you can talk to them and they will negotiate with you to pay the car off because that's the last thing they want is the car. They will get like 1/4 of what it's worth so they would rather you pay it off. I don't know if the banks will take lower in other cases
When banks do that, it's called a write-off. It leaves a R9 in your credit file. But there's no way you'll get away with a 25% settlement on a vehicle, the bank prefers taking you to court and writing the vehicle off as a loss, so they can put it against the billions of profits they make per quarter and in turn, pay less taxes to the gov.

Well in canada at least.


But no way can you get 10k of interest over 6 years in a bank for a ranger loan.
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  #15  
Old 06-20-2010, 02:47 PM
jaywmu08 jaywmu08 is offline
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Default Re: paying off ranger!

i don't remember exactly what the accrued interest would be after paying the loan for 6 years. i just remember feeling alittle sick after seeing the price of the truck compared to the price of the truck plus the interest of the loan. hopefully by paying this off three years early i will be getting ahead enough so that i will never have to finance a vehicle again.
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