Financing Agicredit Precomputed Loan

[land surveyor]

I'm looking at buying a Kioti. Had the deal all worked and was told it was a simple interest loan. When I got to the finance contract it was a Precomputed Interest Loan.

Agicredit Acceptance LLC is the company.

I plan on paying the loan off in less than a year.

Agicredit and the salesman both tell me I would not have to pay the full precomputed intrest ($4,200) but only the actual amount of intrest accrued through time of payoff.

Anybody have experience with this situation and this company?

 

[MinnesotaEric]

It sounds like they showed you an amortization sheet, required by law, that tells you the totals you'll pay if you carry the note to full term (principle plus interest).

What you want to ask is if there is a pre-payment penalty. If not, and you're comfortable with the interest rate, fees and whatever else they snuck in to arrive at the final APR rate, then go for it.

To pay a note off early, you simply contact the lender and ask for the payoff total. You'll get a total and a date in which you need to get your payment to them by and that is that.

 

[VictorW]

I had used agricredit about nine years ago and did pay off early with no penalty but that doesn't mean you have the same contract. As mentioned, it's law that they show you the total amount paid over the course of the loan if just making the scheduled payments. Read the full copy of the contract. Somewhere in the contract, it should say there is or is not a pre-payment or early pay-off penalty. What's in print is what means something. Not what someone advises but I would hope they are telling you the truth. If you're not sure, take the contract to someone who understands the legal jargon.

 

[SCWOOD]

I think you will be OK! Just made my first payment on my CK2510 with Agicredit. The payment book says to contact them for payoff amount.I set up direct withdraw & called them to verify. Very fast service & very helpful.

 

[Gary in NJ]

I payed of my Agricredit loan after only two payments. No penalty.

 

[grm61]

Agricredit....good folks:thumbsup:

 

[Stix]

I have them now and just called today. Payoff no penalty. Really nice people.

 

[Maka]

This was a common question of many of our customers who financed their tractor through Agricredit. They never charged a penalty for paying off the loan early. They are a good company.

 

[Grant1]

I'm not sure why they do it that way but it does work out the same. I have had 3 Agcredit loans and have paid the first 2 off early with no penalty

 

[TSO]

AgriCredit is actually owned by AGCO (who own Massey, etc)... Just FYI, I found that interesting.

I have used AgriCredit several times, very nice to work with. As Eric pointed out, that is just an example of the interest paid if the loan went full term.

As far as I know, you can pay off the remaining principal balance at any time without penalty (and without owing remaining interest).