Boat Payoff

[steelhorse454]

Hey Folks-

We have not been out much this year due to "life happening events", but today is a great day. The wife and I have been doubling and tripling up on our boat payments, and today, just sent the balance in for payoff. What a great feeling !

Another nice asset in the group with our 2023 AR195, or not, depending on how much of a money pit it may become.. haha.

Our next trip out with be extra relaxing for sure !!!

 

[FSH 210 Sport]

Thats an awesome financial stragtegy! Congrats!

I’m dong the same but I have a ways to go yet… should have been doing that from the beginning and it would have been paid off by now.. oh well, hitting the principal with a $1000 each month now.

 

[steelhorse454]

Thats an awesome financial stragtegy! Congrats!

I’m dong the same but I have a ways to go yet… should have been doing that from the beginning and it would have been paid off by now.. oh well, hitting the principal with a $1000 each month now.

Thanks! Appreciate the kind words.
And Thanks to all the thumbs up.

 

[zpaul]

Yamaha finance is not very friendly with extra payments. Say your payment is $1000. If you send $1200 they will not apply $200 towards principal. They will apply it to your next payment and show that you owe them $800.
Toyota actually played similar games.
My bank for the mortgage actually allowed to specify that if I sent them $1200 they need to apply $200 to principal every month.
What do you guys do with Yamaha finance?
I saw some people suggested to send $1000 payment on the 1st so they apply to your payment schedule and send $200 on the 5th and they will apply it as extra payment to principal! Knowing Yamaha I am somewhat convinced they will apply it towards next payment.

 

[FSH 210 Sport]

Yamaha finance is not very friendly with extra payments. Say your payment is $1000. If you send $1200 they will not apply $200 towards principal. They will apply it to your next payment and show that you owe them $800.
Toyota actually played similar games.
My bank for the mortgage actually allowed to specify that if I sent them $1200 they need to apply $200 to principal every month.
What do you guys do with Yamaha finance?
I saw some people suggested to send $1000 payment on the 1st so they apply to your payment schedule and send $200 on the 5th and they will apply it as extra payment to principal! Knowing Yamaha I am somewhat convinced they will apply it towards next payment.

My boat loan is through US Bank.. since I do not have a regular bank account with them I cannot pay extra via bill pay for the extra principal payment, nor is there a place on the monthly payment slip for extra principal. I have to go into the bank, give them $800 cash and tell them to apply to this months payment as principal and I ask for a receipt, the double check it next month on my statement that it was applied to principal.

 

[steelhorse454]

Yamaha finance is not very friendly with extra payments. Say your payment is $1000. If you send $1200 they will not apply $200 towards principal. They will apply it to your next payment and show that you owe them $800.
Toyota actually played similar games.
My bank for the mortgage actually allowed to specify that if I sent them $1200 they need to apply $200 to principal every month.
What do you guys do with Yamaha finance?
I saw some people suggested to send $1000 payment on the 1st so they apply to your payment schedule and send $200 on the 5th and they will apply it as extra payment to principal! Knowing Yamaha I am somewhat convinced they will apply it towards next payment.

Hey- we went through the same as what you are saying, but my wife called them and worked it out with Yamaha where they would apply the extra $$ toward principal. You have to push this with Yamaha as I believe my wife said it took a couple of times contacting them. Good Luck

 

[F.M.]

Even if Yamaha Finance or any other financial institution is applying any extra money received toward your next payment, it still lowers your principle balance and thus saves you money on interest.

They show it as being applied towards your next payment hoping you will pay the lower payment instead of your regular payment amount to trick you into having the loan longer and paying more interest.

If you have set a payment schedule for yourself, paying extra to pay off your loan early, just ignore the monthly statement. No matter what the statement says your payment is or how far your payment due date gets pushed into the future because of over payment, every dollar you pay over the payment amount is lowering your principle, saving you on interest, and will get you out of debt faster.

Congrats @steelhorse454 that’s a great feeling.

 

[jthackman]

frustrating they make it confusing, or create hoops to jump through, or they're not consistent.

my recent experience-
i had 4 loans at 4 diff banks....yee haw!
us bank, no other accts
wells fargo auto, have mortgage there
bank of the west (now bmo), no other accts
capital one auto, have credit card there

they were all originally set up to auto draft from my acct. then i switched to my bank's bill pay. there were a few hoops from each and a couple of overlapping pmts to make the switch. but i set it up to pay extra to each loan (easy to make adjustments). each bank applies the extra amount bill pay gives them to principal without any other action from me. i track the principal of each, each month on their website, or statement. i've ignored their 'pmt due' amount, mostly those show 0$ due.

i can't remember the last payment slip booklet i've received...15-20yrs ago? odd that fsh210sport has one from usbank. maybe setting up auto draft in the beginning affects this?

something like this is cool to use to see/plan the extra pmts. i fiddled around with the extra amounts until i had a plan for all of them to be paid off in x number of months.

Debt Payoff Calculator

Free calculator for finding the best way to pay off multiple debts such as those related to credit cards, auto loans, or mortgages.

www.calculator.net

 

[zpaul]

Even if Yamaha Finance or any other financial institution is applying any extra money received toward your next payment, it still lowers your principle balance and thus saves you money on interest.

They show it as being applied towards your next payment hoping you will pay the lower payment instead of your regular payment amount to trick you into having the loan longer and paying more interest.

If you have set a payment schedule for yourself, paying extra to pay off your loan early, just ignore the monthly statement. No matter what the statement says your payment is or how far your payment due date gets pushed into the future because of over payment, every dollar you pay over the payment amount is lowering your principle, saving you on interest, and will get you out of debt faster.

Congrats @steelhorse454 that’s a great feeling.

But that is the annoying part. If you your payment is $1000 ($400 principal and $600 interest) when you send Yamaha or Toyota say $2000 hoping they will apply $1400 to principal and $600 to interest, but what they do is apply $800 principal and $1200 interest. And the principal amount drops only by $800 online. And that is horseshit.
If I sent extra $1000 to be applied to principal please do so. I believe Toyota got sued for that.

 

[steelhorse454]

Even if Yamaha Finance or any other financial institution is applying any extra money received toward your next payment, it still lowers your principle balance and thus saves you money on interest.

They show it as being applied towards your next payment hoping you will pay the lower payment instead of your regular payment amount to trick you into having the loan longer and paying more interest.

If you have set a payment schedule for yourself, paying extra to pay off your loan early, just ignore the monthly statement. No matter what the statement says your payment is or how far your payment due date gets pushed into the future because of over payment, every dollar you pay over the payment amount is lowering your principle, saving you on interest, and will get you out of debt faster.

Congrats @steelhorse454 that’s a great feeling.

True….but if you want to track the payments better month to month, my wife said she had to request that they show principal and interest in each statement, which they started doing after she asked them to.
The other issue she said was how they list the payment due date. She had discussions with them about this as well. Not sure about the details of this issue….
Long to short, Yamaha will comply once you request how you want your monthly balance to show. My wife is a retired office manager so she knew what to address.
Just an FYI for you guys wanting to see your statements differently.

 

[F.M.]

If your payment is $1000 ($400 principal and $600 interest) when you send Yamaha or Toyota say $2000 hoping they will apply $1400 to principal and $600 to interest, but what they do is apply $800 principal and $1200 interest.

A financial institution can’t charge you for future interest on a simple interest loan, only interest that has accrued. On paper they like to make it look like it’s been applied to future interest because they would like you to think you can skip your next payment and be good to go. That way your following payment will accrue more interest than it normally would, and they are one setup closer to keeping you from paying your loan off early. I assure you that if you watch your principal balance it decreases every time you pay extra with your payment no matter what it shows on your statement. They must apply the money that you pay to your account and the only place to apply it is to your principal balance.

 

[Brad460]

My boat loan is through US Bank.. since I do not have a regular bank account with them I cannot pay extra via bill pay for the extra principal payment, nor is there a place on the monthly payment slip for extra principal. I have to go into the bank, give them $800 cash and tell them to apply to this months payment as principal and I ask for a receipt, the double check it next month on my statement that it was applied to principal.

We also have our loan thru US Bank and don’t have a regular account with them, only the boat loan.

Online we can make payments, extra payments (called “other amount”) and we can pay toward principle only..

 

[FSH 210 Sport]

We also have our loan thru US Bank and don’t have a regular account with them, only the boat loan.

Online we can make payments, extra payments (called “other amount”) and we can pay toward principle only..

View attachment 238553

Thanks I’ll ask the branch manager next time I go in !

 

[steelhorse454]

A financial institution can’t charge you for future interest on a simple interest loan, only interest that has accrued. On paper they like to make it look like it’s been applied to future interest because they would like you to think you can skip your next payment and be good to go. That way your following payment will accrue more interest than it normally would, and they are one setup closer to keeping you from paying your loan off early. I assure you that if you watch your principal balance it decreases every time you pay extra with your payment no matter what it shows on your statement. They must apply the money that you pay to your account and the only place to apply it is to your principal balance.

Yes. They know what they are doing and are quite sneaky about it.
That's why I said you have to push the issue of how you want your statements to look.