Yamaha financing though GE Capital bank

[bobbie]

@steined so far my principal payment are doing exactly what i intended. I have the regular payment on autopay and send the additional to the ohio address for principal only. when i receive my monthly bill the extra money is reflected as extra principal payment. this will take our loan for the new boat down to under 48 months. don't like owing anything!

 

[steined]

@steined so far my principal payment are doing exactly what i intended. I have the regular payment on autopay and send the additional to the ohio address for principal only. when i receive my monthly bill the extra money is reflected as extra principal payment. this will take our loan for the new boat down to under 48 months. don't like owing anything!

No kidding. I had no idea they were doing that. Of course the finance manager at the boat dealer was fired 2 days after I bought my boat and he single handedly almost lost my business for the dealer during the purchase process so it is no surprise I wasn't informed of this. Should have read ALL the fine print!

 

[Jim Cosler]

Wow.. I need to investigate further. Seems as though we might be getting the best of both worlds... I can't believe they would tally extra payment in both categories.

 

[Murf'n'surf]

After paying more than the minimum due every month, your statement will show $0.00 due (this month).

 

[Jim Cosler]

After paying more than the minimum due every month, your statement will show $0.00 due (this month).

Not mine, it always shows the original payment amount and the additional monies I paid are deducted from the remaining principal.

 

[bobbie]

@Jim Cosler Same here.....my payment due dates do not reflect zero due. My principal payments don't affect the regular payment schedule. Just cut that nasty interest....even if it's just 2.9%.

 

[Murf'n'surf]

@Jim Cosler How long have you been paying?

 

[davel501]

Mine has shown $0 due for as long as I can remember. The payment lines up pretty close with the amortization charts that include the prepayment so it seems like they are doing both on mine.

 

[Magic]

I think we are like 7 payments ahead, but have not thought about adding to principal only.... I think I read somewhere that additional funds will be applied to the next payment.... I need to check that out!

 

[bobbie]

@Magic keep in mind its a completely different address in kettering, oh. if you call their toll free number on your statement it will give you the mailing address.

 

[Magic]

@Magic keep in mind its a completely different address in kettering, oh. if you call their toll free number on your statement it will give you the mailing address.

Thanks! I will have to look that up next bill!

 

[steined]

The mailing address for additional principle is the payoff address, which is on the back of the statement. That's what they told me when I called.

 

[drjames1107]

The result of saying you have payment paid up for say 12 or 18 months and not applying the amount to principal is not good for the consumer. That would mean that the extra payments are sitting in "another" account waiting to be "Applied". Which means that your still being charged interest on the outstanding balance ( Total principal ).

Say you borrow $20k @ 3% interest for 10 years your payment would be $193.12. If you Paid Double then in 5 Years you would say hey my loan is paid in full I made the 120 payments of $193.12. for a total interest charge of $3,174.58. Thats what the bank wants you to think.

when actually if you paid $359.37 (which is less than double) you would have paid off the loan in 5 years rather than 10, and only paid $1,562.43 in interest. Much better for the consumer.

You have to make sure your extra payments are going to the principle and not just sitting there waiting to be applied when the next payment rolls around.

 

[Murf'n'surf]

Mine are paid to principle. Every statement shows the detail of payment and the balance of the loan. There is no "hidden" place where the funds are waiting to be applied to the principle.

 

[steined]

Mine are paid to principle. Every statement shows the detail of payment and the balance of the loan. There is no "hidden" place where the funds are waiting to be applied to the principle.

Do you pay to both the Kettering address and Atlanta address?

I'm just a Computer Engineer 2 classes shy of a math minor with a MBA, but I couldn't figure out what they were telling me the difference was between paying over to the regular address and paying minimum to the regular address and overage to the Kettering address. There was a difference, but it was clear she was reading a script and didn't fully understand my question or the difference.

This is only what I surmised from the conversation, but I am guessing they apply the "overage" on the payment date after interest has accrued. Therefore you are 30 days better off paying to the Kettering address. I couldn't get a straight answer and instead of asking her for the 5th time the same question a different way and hearing the same exact response , I just decided to pay minimum to one and overage to another. There is no reason to have my account pre-paid for a almost a year. No idea what game they are playing over there. I knew I should have just paid cash but I'm still doing better in the market (somehow)!

 

[Murf'n'surf]

My payment goes to Atlanta. Keep in mind that my loan originated 9 years ago. I'm sure things have changed since then! I debated paying cash but the money has been earning far more than the loan is costing me. But I'm at the payoff threshold in the next couple of months.

 

[davel501]

My statement has the Kettering address for overnight payments and payoff checks. I assume something changed in the last few years as my loan documents say all excesses will be applied to principle. They actually seem much better than most banks in that way where you do not seem to have to mark the check. I do anyway because I do not trust anyone when it comes to money.

 

[bobbie]

the kettering address is for principal only payments in addition to payoff amounts. i've now sent two principal payments and they have been reflected correctly to my account. why they don't have an online bill pay system drives me nuts. i'm assuming that's exactly what ge capital wants...lots of confusion equals lots of fees.

 

[davel501]

I think it really depends on the terms of your loan. It sounds like the newer loans are the ones that have this restriction.

 

[MikeyL]

on Bank of America its not auto pay. You set up a company you want to pay, and can pay any day you want. some companies receive the money faster than others but GE Capital was a 1 day receiver. so if its due on the 20th, you can pay and day before the 19th and it will arrive on time. I pay all my bills this way save a lot of stamps and you can hold your money till the lat minute!

David knows what he talking about ! There are ONLY two banking Bill Pay companies in America, and all banks who offer this service use 1 or the other. Both are HIGHLY RELIABLE ! They have both been offering their services to the banks for more than 15 years !
While saving you a ton of time, and stewpid excess USPS fees (ie, postage ... redicules !). And it's F-R-E-E !!! My first suggestion : Just go ask your bank and they'll be happy to explain all of this to you. They actually WANT you doing this, as they no longer want to process paper check transactions. Or, most banks offer a "Frequently Asked Questions" (FAQ's) section on their on-line bill pay web page.
In your case you get a DOUBLE BONUS: Because you can set up AUTOMATIC payments, EVERY MONTH to be made on the same day.
Good Luck and we hope this helps you ! Mikey Lulejian - Lake Oconee, GA