Mike
Radford,#2Consumer Suggestion
Mon, July 03, 2006
Dealers tell EVERYONE that they can refinance later in order to convince them to accept a crappy loan. It is just talk. Your ability to refinance depends on having better credit (no late payments, especially on the car loan) later as well as not paying too much for the car in the first place. However a rule of 78 loan can be refinanced. It may cost a few dollars more than having a conventional simple interest one but not a prohibitively large penalty. Rule of 78 loans are also called "precomputed," compared to "simple interest" which it the much more common type especially for buyers with good credit. If you pay off a precomputed loan early with one lump sum (win lottery, trade in the car, or refinance it), the penalty compared to having a simple interest loan is not large. However paying off early by paying extra per month has little advantage with a precomputed loan. Though paying extra can save big money with simple interest.
Steve
Bradenton,#3Consumer Suggestion
Mon, July 03, 2006
CHANGE YOUR PHONE#!!! Get an unlisted one. That was easy! No more calls! Now, got a fax machine and an extra 100 sheets of paper and unlimited long distance? If not, get it! Now turn their own harassment around on them. Everytime they call, send them 100 page fax of your CEASE COMMUNICATIONS request. And send the same 100 pages every night about an hour after they close. You will repeatedly run them out of paper and toner, and fill the fax memory, so when they reload everything the memory prints another 50 pages or so. This tactic works every time! Guaranteed! Do they have a few 800#s or other toll free#'s? If so, pound them with calls every 2 minutes just to run up th 800# bill! ONLY do this with your old#, as the 800#'s these places have in use, can capture even your unlisted#! It is a service they pay for called an outbound 800 service that comes with all of these features. Most collection agencies use this service.
Lori
East Alton,#4Consumer Comment
Sun, July 02, 2006
Where did you hear that you could be penalized for an Early PayOff? I was told that I could refinance mine after 1-2 years and/or pay it off early.(I hope they were NOT lying to me!) AND what is the Rule 78? Can someone please explain this? I am praying that THAT does NOT mean that I have to keep my vehicle financed with them for the whole length of the loan! As far as the phone calls, you can stop them just by giving them a "date" that you plan on making a payment (a promise to pay), that should work unless you are really behind in payments. FYI; a letter requesting them to stop calling only works with Collection Agencies (or any other 3rd party collectors)....it doesn't apply to Original Creditors! TIA.......for everybodys advice/comments!