Yamaha Motors Financing & Problems with payment towards principle

[HangOutdoors]

Even if they apply extra money over your regular payment toward your next payment, your principle balance is still going down. You could be 1 year ahead on payments and it all went toward your principle so your accruing less interest each month that you have the loan, and will still be on track to pay it off early. Sounds like the only problem is that if you schedule payment they Yamaha Financial, they won’t take a payment for the next month if you’re ahead on payments. So schedule the payments thru your bank at whatever interval you like, and just check your Yamaha balance occasionally and smile when you see how low it’s getting.

I guess there is still confusion. If you schedule or make payments in advance and they take them, it doesn't bring down the principal at all in addition to what would be a regular payment if they credit them toward future payments only.......

None the less, at least I don't have to deal with them....

 

[F.M.]

I guess there is still confusion. If you schedule or make payments in advance and they take them, it doesn't bring down the principal at all in addition to what would be a regular payment if they credit them toward future payments only.......

None the less, at least I don't have to deal with them....

If you log on to the Yamaha financial website and make seven $500 payments. Your balance will decrease the amount of the first payment minus the interest due. Then it will decrease another $3000 in principle from the other six payments. Once all the payments clear, you’ll notice that your next payment isn’t due for 6 months. what Yamaha wants is you to see your next payment due 6 months out and not make another payment for 6 months. That way they can collect 6 months worth of interest on your balance. The finance industry is a game of smoke and mirrors. They don’t collect unearned interest for future payments, they know that’s illegal. They just hope we’re not smart enough to continue making payments when they tell us one isn’t due yet. They make the most money by us carrying loans to full term.

 

[HangOutdoors]

That way they can collect 6 months worth of interest on your balance.

So they are collecting interest due on unearned interest and payments not due yet. We are saying the same thing.

 

[F.M.]

So they are collecting interest due on unearned interest and payments not due yet. We are saying the same thing.

No we’re not. They won’t collect any interest or principle from you for 6 months….. until you make the next payment 6 months later. Then your next payment would most likely be all interest with nothing going toward principle. They want to collect all the interest they can. On paper to the customer they show that “future payments have been made”. Legally they have to put extra money toward principle and hope we’re too dumb to continue making payments.

 

[Maccam26]

Well Yamaha Financial Services is still as shitty as 5 plus yrs ago. Setup auto draft for my first payment, did not process. Had to make the payment manually. Thank god I checked or I’d be late. Be careful and protect your perfect credit rating by double checking everything you do with that institution.

 

[HangOutdoors]

unless you are 30 days late it WILL NOT be reported to the credit bureaus.

 

[Maccam26]

unless you are 30 days late it WILL NOT be reported to the credit bureaus.

Yep it was 2 days after my due date so all good

 

[Wishfull1]

I don't have any issue with Yamaha Finance, even with the transition from Synchrony? I set up an over payment with autopay, the statement has a "reduction" line item, which I assume is principle reduction. Even though I don't have a payment "due" next month (or many months/years), it appears to be reducing the principle properly.

Using Amortization Calculator, the ending balance is within a few bucks. I don't have any concerns on how they are applying interest/principle payment at this point.

 

[suke]

Well Yamaha Financial Services is still as shitty as 5 plus yrs ago. Setup auto draft for my first payment, did not process. Had to make the payment manually. Thank god I checked or I’d be late. Be careful and protect your perfect credit rating by double checking everything you do with that institution.

I use my bank for the auto payment. I had similar issues during their transition too when I setup auto payment. So I said eff it and it's always done on time with my bank.

 

[Maccam26]

I use my bank for the auto payment. I had similar issues during their transition too when I setup auto payment. So I said eff it and it's always done on time with my bank.

Yeah that’s what I’ve done now, not sure why the system didn’t pull it but I’m not messing with it based on my prior experiences. I’ve also sent them 4 requests to edit my name (correct it) and they’ve been unresponsive. They still are the worse finance company I’ve ever dealt with.

 

[2kwik4u]

I can't wait until i try to register the boat in NY and I have to get some sort of letter from Yamaha financial regarding the loan. I suspect that might trigger a refi to a more local institution (or possibly just a payoff in full depending on where I'm at by then).