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  1. #11
    Elite Member CobyRupert's Avatar
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    Oct 2012
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    3,082
    Location
    Washington County, NY
    Tractor
    JD 5075E

    Default Re: Why am I being charged $20 on my 0% loan?

    What's the advantage of paying ahead on a 0% percent loan?
    A) Aren't you missing out on any gains your money could of made in the interim?
    B) Given inflation aren't today's dollars worth more than tomorrow's? (Sort of like how a 1972 dollar is worth way more than a 2017 dollar).

    If it wasn't a 0% loan there is an advantage in paying ahead and saving interest fees, but only if you make the regular payment the next month.
    I did this with my house mortgage every chance I could get. Example: Using an amortization table, on month #14, I'd send in the month #14 payment and also send in the principle portion (only) of month #15's payment (i.e. skip paying the interest portion of month #15). I could then cross of month #15 as paid. When the next month came around I could consider myself on month #16. Having a 8% mortgage at the time, I think I saved myself about $150,000 worth of interest.
    Last edited by CobyRupert; 08-23-2017 at 11:10 AM.
    JD5075E, Frontier RC2084 Rotary Cutter, Wallenstein FX65 Skidding Winch

  2. #12
    New Member
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    Jun 2017
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    Maryland
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    Default Re: Why am I being charged $20 on my 0% loan?

    Quote Originally Posted by CobyRupert View Post
    What's the advantage of paying ahead on a 0% percent loan?
    A) Aren't you missing out on any gains your money could of made in the interim?
    B) Given inflation aren't today's dollars worth more than tomorrow's? (Sort of like how a 1972 dollar is worth way more than a 2017 dollar).

    If it wasn't a 0% loan there is an advantage in paying ahead and saving interest fees, but only if if you make the regular payment the next month.
    I did this with my house mortgage every chance I could get. Example: Using an amortization table, on month #14, I'd send in the month #14 payment and also send in the principle portion (only) of month #15's payment (i.e. skipping paying the interest portion of next month's payment). I could then cross of month #15 as paid. When the next month came around I could consider myself on month #16. Having a 8% mortgage at the time, I think I saved myself about $150,000 worth of interest.
    What's the advantage? To get it paid off. I hate owing money but I do it for convenience. The interest rates the banks are paying on savings accounts, money markets, and CD's hardly make it worth it to put the money in these accounts rather than paying off zero interest debt. I tell people if you are going to pay more than the minimum amount, put that money on interest bearing loans and not these zero interest ones.

  3. #13
    Elite Member CobyRupert's Avatar
    Join Date
    Oct 2012
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    3,082
    Location
    Washington County, NY
    Tractor
    JD 5075E

    Default Re: Why am I being charged $20 on my 0% loan?

    Quote Originally Posted by BumperB View Post
    What's the advantage? To get it paid off. I hate owing money but I do it for convenience. The interest rates the banks are paying on savings accounts, money markets, and CD's hardly make it worth it to put the money in these accounts rather than paying off zero interest debt.
    I hear you, but if I read it correctly, the OP isn't paying it off early. He's just paying early, then skipping payments.
    JD5075E, Frontier RC2084 Rotary Cutter, Wallenstein FX65 Skidding Winch

  4. #14
    Super Star Member EddieWalker's Avatar
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    May 2003
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    18,692
    Location
    Tyler, Texas
    Tractor
    Several, all used and abused.

    Default Re: Why am I being charged $20 on my 0% loan?

    It's been a few years, but when I talked to the kubota salesman about a zero percent loan, he said that Kubota requires insurance to be paid in addition to the loan until the loan is paid off. I forget how much extra that was, but is might be what you are being charged for.

  5. #15
    Gold Member
    Join Date
    Oct 2010
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    469
    Location
    Scotch Creek, British Columbia
    Tractor
    2010 Massey GC2610TLB

    Default Re: Why am I being charged $20 on my 0% loan?

    I don't think that there is any such thing as a 0% interest loan. I've always been able to get a lower price for cash than what they want with such a gimmick.

  6. #16
    Elite Member
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    MessickFarmEqu's Avatar
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    Feb 2004
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    5,362
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    Lancaster County, PA

    Default Re: Why am I being charged $20 on my 0% loan?

    none of this sounds normal. you should call KCC.

  7. #17
    Bronze Member
    Join Date
    May 2017
    Posts
    64
    Location
    Grand Rapids, MI
    Tractor
    Deere 425AWS

    Default Re: Why am I being charged $20 on my 0% loan?

    Please let us know what you find out. From what I can understand you are not making extra payments early, you are just paying more principal every month. When I had a mortgage this was a no-no (I couldn't skip payments). Why is your next payment not due until December?

  8. #18
    Platinum Member Mendonsy's Avatar
    Join Date
    Nov 2012
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    817
    Location
    Mendon, NY
    Tractor
    Kubota B7500HST

    Default Re: Why am I being charged $20 on my 0% loan?

    I had a similar occurrence with a local credit union. The way they were set up, if you paid an installment more than 7 days early it was deducted from the principal but there was still a payment due on the regular date. If that second payment was not made they treated it as overdue and charged extra.

  9. #19
    Elite Member RollingsFarms's Avatar
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    Mar 2007
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    2,533
    Location
    South Carolina
    Tractor
    Few John Deere's and one Ford 3600 diesel.

    Default Re: Why am I being charged $20 on my 0% loan?

    Finally got KCC on the phone yesterday, very helpful lady I spoke with. It's something about the insurance for that month. Basically you have 2 payoff amounts, one with the insurance figured in and one with a balance that you can pay off today and your insurance is cancelled. The insurance is figured into every payment, since I'm paid up so far ahead she said it just goes back to the balance for that month. Me paying ahead was no big deal and I wasn't missing any payments or having any missed payment penalties against me she said. In fact she told me to just keep doing what I've been doing if I wanted to, I was in good standing with kubota. She even tried to get me to do another loan and said she could approve me before I got off the phone.lol Basically I'm going to pay the tractor off about a year before my 60 months is up and have several hundred dollars left over with the insurance, in which case she said they can credit me that amount to me buying insurance after the loan was paid off. I won't be losing that money unless I let the insurance cancel after the payoff and don't renew it.
    Great grandpa drove blue, grandpa drove green, dad drove red and I drive blue and green

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