2014 Ordered/Built/Delivered Thread
6/2/14, 06:44 PM
#5041
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My dealer emailed me today, he's got the rail car number and he's got a call in to a rep at CN to track it and find out how far out it is, so that's kinda nice.
6/2/14, 09:56 PM
#5042
6/3/14, 08:52 AM
#5045
Suppose one borrows $30k over 72 months at 2% with payments of $442.51. Also suppose one has ample cash to do the deal (i.e. could make a lump sum payment at any time to end the loan) and is only financing for healthy credit. How should he or she structure their extra principal payments to pay down the loan without paying it off and still pay minimal interest?
The way I see it, every $442.51 extra you pay will decrease the length your loan is open by a month, so any effort to pay down the loan is going to save interest but hurt credit. Any effort to maximize the length of the loan will cost interest but help credit... What is the trick?
6/3/14, 09:28 AM
#5047
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Deysha
6/3/14, 09:35 AM
#5048
So put $23k down in cash and only finance $7k? Is this what Remford meant?
For anyone who may be following along, that makes the payments $103.25 and the overall interest on the loan decreases from $1860.95 to $434.22.
When Remford said "pay down," I thought this was an action one takes while making payments. Are we actually talking about structuring the loan differently at the outset?
For anyone who may be following along, that makes the payments $103.25 and the overall interest on the loan decreases from $1860.95 to $434.22.
When Remford said "pay down," I thought this was an action one takes while making payments. Are we actually talking about structuring the loan differently at the outset?
6/3/14, 09:39 AM
#5049
Cobra Member
There are a lot of different ways how credit can be built up. this is how i would do it. if i had the money to completely pay off my car yet, wanted to build up more credit. I would pay off a huge lump sum of the car and work with my financial institution to make sure that i was still making monthly payments for however long you want to finance the car. in your case, you're talking about 72 months.
so - yeah, as an example of building credit. You could pay off a huge chunk and still make payments for the 72 months of $100 give or take (which is how you can build you credit rating) and keep the payments low enough.
this is how I'd do it If I the cash at hand.
Edit - even I was confusing myself with the more than one example I was trying to make, so I removed a part of it.
so - yeah, as an example of building credit. You could pay off a huge chunk and still make payments for the 72 months of $100 give or take (which is how you can build you credit rating) and keep the payments low enough.
this is how I'd do it If I the cash at hand.
Edit - even I was confusing myself with the more than one example I was trying to make, so I removed a part of it.
Last edited by JoeMidnight; 6/3/14 at 12:07 PM.
6/4/14, 07:15 AM
#5052
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6/4/14, 08:56 AM
#5053
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There are a lot of different ways how credit can be built up. this is how i would do it. if i had the money to completely pay off my car yet, wanted to build up more credit. I would pay off a huge lump sum of the car and work with my financial institution to make sure that i was still making monthly payments for however long you want to finance the car. in your case, you're talking about 72 months.
so - yeah, as an example of building credit. You could pay off a huge chunk and still make payments for the 72 months of $100 give or take (which is how you can build you credit rating) and keep the payments low enough.
so - yeah, as an example of building credit. You could pay off a huge chunk and still make payments for the 72 months of $100 give or take (which is how you can build you credit rating) and keep the payments low enough.
Also, it doesn't hurt to pay off a loan early, it just doesn't help your credit.
Last edited by lancemb; 6/4/14 at 08:57 AM.
6/4/14, 09:17 AM
#5054
Cobra Member
You would have to restructure the loan in order to lower the payment, which would be subject to approval by your financial institution. This is basically equivalent to a refinance, which may actually be a better option if you can get a better interest rate on a lower principal after paying it way down.
Also, it doesn't hurt to pay off a loan early, it just doesn't help your credit.
Also, it doesn't hurt to pay off a loan early, it just doesn't help your credit.
Exactly - yes. if a financial institution would approve someone for 30k to purchase a car, there is no reason why they wouldn't approve him for even 10k and stretch out the payments.
6/4/14, 09:16 PM
#5057
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Deysha, when you have a moment can you check on the rail car my car was loaded on? Tomorrow is one month since blend date, hoping to see it soon.
Thank you.
Thank you.
