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.
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.