Paying off truck

Yes, I just added 10% to the monthly payment and I was able to pay the truck off about 5 months early. It doesn't seem like it will make much of a difference in the beginning. As you continue to make payments you will see more of your principal being reduced and where you pay less interest. My bank separated the interest from principal on the statement so I could see where each payment went.

 

You can make an additional payment and specify that the payment goes toward the principal. Lenders have been using the "rules of 78" scam for years. Most people are probably not familiar with the term or how much extra they pay these people. The interest rate and "effective interest rate" will differ with these types of loans. Before getting any type of loan you should ask how they calculate their interest.

 

You may not see much difference in the loan amount in the beginning. If you keep making the extra payments you should eventually notice your principal amount being reduced more than you are paying on interest. As I stated in my previous post, you can make an extra payment and note on the check that it should be applied to the principal. I think you may be misunderstanding your lone statement. The date the loan expires is based upon the original agreement where you make a certain number of payments over a pre determined number of months or years. When you pay ahead or more payments than is specified in your agreement and have those payments go toward the principal then you will ultimately reduce the length of time that you are making payments and also lower the amount of interest expense you pay your lender. Credit unions usually apply any additional amount paid over the regular payment to the principal. Many years ago, I did business with a bank and credit union. Both gave me the same interest rate, but my payment was $10/month less with the credit union than with the bank. The difference was that the credit union charged simple interest whereas the bank charged compound interest.

 

Sure you will save money. If you also noticed, that payoff amount doesn't decrease by one month's payment every month you make a payment.

Example: payoff amount $15000, monthly payment $500. After a payment tour payoff is not going to be $14500, but something like $14600, for example. That $100 is interest that has accumulated over the month. Cheers

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Anything more you pay than the minimum will cover principal, in most such loans. Pay more monthly. Like chalupa said, if you can double the payment is awesome.

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Most of the time how lenders calculate their interest is already set in stone. Its just not something you can argue about, but it is something to think about when comparing different options to compare apples to apples.

If you are looking at a glider, I'd seriously consider talking to captives (Daimler Truck Finance, Paccar) in your cases (you'd do this by talking to the dealer you are looking at the gliders at most likely). Alot of banks/CU won't do gliders (though certainly check them out), because technically its a used truck and the understanding of them among the average banker is just not something they like see all that much. DTF and Paccar are both set up to do those, and are some of the only lenders that will lend on a glider.

 

Too expenssive; 130,000$ for 12 years old technology trucks plus...the grey legal status. If over the next years they enforce emissions retrofit this truck is going to cost you over 150,000$. Why not buy a used 2003 or older for 10-15,000$ and the same motor like in gliders, reman D60 for 25,000$ installed. For less than 50,000$ you can have a good reliable truck with same motor warranty.

 

I know of no gray legal status myself, maybe explain that or post a link to some facts? Gliders have been around for decades, so nothing new so far as I know.
Personally, if choosing to spec a truck, I would gladly pay the $123k I was quoted for a well spec'd Western Star glider, vs the $150k for one with all this modern technology. It's the modern technology that can put a guy out of business for God's sake!
Sorry, but after 22yrs of doing this, I would trust an old 2000 spec S60 over anything that is currently being offered by any of the OEM's. It isn't that they are ahead on technology, it's the FACT that they have to hang a load of crap onto the engine to make it meet idiotic emission standards.
Comparing a glider to a used truck with an inframe is apples to pears. So far from true it isn't even funny.
Engine has warranty, tranny has warranty, rear ends have warranty, and the whole truck has it's warranty. How the heck do you jump to a 10yr old truck and an inframe from that? Not to mention the FACT that most inframes dont include a turbo, CAC, radiator, coolant hoses, motor mounts, fuel lines, wiring harness, and so on. Go price all that up, along with rebuilt tranny and rear ends, throw new bushings and kingpins in the deal, then a paint job, and you will be getting kinda close to a new glider.

Martin