mercer transportation

What's right the 20% or 40%?

 

That's cool

 

Holy smokes. Did you fall and hit your head? Twenty freaking percent?! Dude that's pawn shop and payday loan type of extortion lending rates. At that point you would be better off just using a credit card to pay for it.

 

For someone that only has 6 years worth of credit history prob the best im gonnna get(Unless i put personal stuff down like my car). I Have short credit history. Hell my truck is right around 12-15%? The best way to avoid the high interest is pay the amount down before. If i double up my payments or even pay $1,000 more a year then my interest drops to 10%. My local bank would do it but they want the car and im not willing to put that down.

 

didn't you sell the dynasys?

 

Yes but i used the $$ from that to pay the loan off on that one

 

Read that finance contract. It's very common for these b grade extortion rate finance compares to also include prepayment penalties.

Also youve been in business a few years now, get those books in order. If your business has two plus years of decent profits there is absolutely no reason to be paying more than 6 to 7% interest on business equipment loans.

 

Adding to this... Find out if there is a prepayment penalty and what amount or percentage it is. If it is less than 20% of the loan value, look at getting either a business credit card or LOC. Hell, even a personal credit card with one of those 0% introductory rates would work. Put the balance on that. As long as you can double up your payment each month, you'll stay way ahead of any compounding interest for a year or so. If you can triple that payment or make it a smooth grand each month you'll pay virtually no interest and be paid off inside a year. Sucks in the short run for your cash flow but keeps you from paying out the ### in interest. Like those old FRAM commercials "You can pay me now or pay me later".

To be honest, an APU is something I would have tried to roll into the truck loan.

 

How about just pay cash.... I thought you said you could pay an extra $1k plus the $325 per month. Just save that money every month, and by June you've got the $10k. No payments, no interest.... It don't even get hot until July.

What happened to the Honda Generator? Or the APU that the generator replaced? You are on four auxiliary power sources in half as many years.

That interest is absolutely insane.

 

20%.... Interest is the apr, so essentially they take the remaining balance divided by 12 months and charge 20% each month as the easiest way to explain it. So the first month you pay $350 (or whatever he said the payment was), but $167 of that is in interest, so only $183 goes towards the balance. The next month then only say $163 goes towards interest, $187 towards the balance, so on and so forth. It's why a house will typically cost you 3 times what you financed it for and a car way more as well. 20% interest ends up being a lot more than 20% of the price