Trouble with Yamaha Finance

[kgower]

Yes makes no sense. Anything above the required minimum should go directly towards principal. Correct me If i wrong, don't the dealer get a piece if you use Yamaha financing. Thought I had read tha you can use that to negotiate with and or build good will with the dealer. After purchase then refi out of it.

 

[suke]

Just looked at my statement. It's operating exactly as everyone predicts. I'm not paying MORE interest. If I pay beyond the minimum it goes towards principal. For instance I pay LESS interest this last payment than the previous one as it's calculated against the real balance. This isn't something that's amortized and you pay the same amount of interest and that interest could be paid upfront and you have to pay the interest in full. It's a standard APR calculated against the balance of the loan. I think you guys are complicating it by the fact that yamaha reduces the amount owed per month IF you overpay towards principal. Their mindset is they want that interest money, SO by reducing the amount owed their hope is they can incentivize you to NOT pay it off early and reduce your monthly amount "owed" to keep on track to reach your full loan term. i.e. maximize their chance of getting interest.

 

[Mustangswan]

@HangOutdoors It did not really sound correct to me either. I contacted Synchony about it and talked to them at the time because I was over paying on the loan. My original goal when I bought the boat was to pay it off within the first 5 years on the 2.99% terms. But I was not throwing that much at it because I was also within 2 years of trying to pay off our house so I was not months and months ahead so I just kinda rolled with it. About the time of the Synchrony collapse is when I finished paying off my house. I am now making my house payment towards my boat so it should be paid off by June.( the original plan)
I was actually arguing with the lady at Synchrony at the time that it didn’t seem right just like everyone is saying, but just rolled with it for the time.
Personally I think Yamaha figured out the Synchrony was screwing people and yanked the plug on them and that’s why it was such a crappie transition to the new Yamaha financial program. I figured that someone that’s pretty savvy about finances would really speak up if they found something truly dishonest going on. I am ok at understanding loan type stuff but not that deep into it. (Ford mechanic by trade) I kinda figured there would be some class action suit at some time about it.
I just know I won’t finance through Yamaha again. We bought a 2020 Yamaha VX WaveRunner this summer ( because the color scheme matched our 16’ 212X) and we needed a four stroke ( 2strokes are now band on our lake). The guy at the dealership asked about if I wanted to finance it, I told him about the Synchrony thing and he said he had several other people saying that they were upset about it also. So I just paid cash, and got the 4 years extended warranty and a discount for paying cash.

 

[mrcleanr6]

I can say i have had a few loans over the years where when you make extra payments it goes against your next months payment. I can remember who it was with or what it was for but i do remember that i didnt have a payment due for like a year and a half lol. I think its working as it should where it goes against the principle but they just remove the required payment on the bill because you were ahead. Since your ahead the payment was basically optional