Again they can not tell you how many payments you must make and if they are they are breaking the law, RUN AWAY, screw them
Thank you for your reply !
Please read four low reply . Thank you !
Please read four low reply . Thank you
Read the fine print, again they can not stop you from pre-payment or not making 6 payments. The dealer will not get paid the premium if you exit, payoff or refi the loan but there is nothing they cal legally do to you. Don’t guess read it.
I'm not going to debate this I don't really care . Mines paid for !
There you go.
This is (mostly) inaccurate information that may result in you incurring significant costs.
Thank you ! I have a friend that had a home equity loan well when he paid it off early guess what in the fine print he had a $350.00 penalty for early payoff he was mad as hell . Like I told him read the fine print before you sigh end of subject !This is (mostly) inaccurate information that may result in you incurring significant costs.
Whether a lender can charge a pre-payment penalty on an auto loan depends on a number of facts. The biggest of these is what state you are in when you purchase the vehicle. The law is not the same in all states on this. Some 35 or so states permit prepayment penalties. In some cases the length of the loan may affect whether they can charge it, as different rules may apply to different lengths of loans. The type of lender you are working with may also affect it (for example, a federally-chartered Credit Union can't charge prepayment penalties on any loans, but a state chartered one may be able to). It also depends on whether the lender is able to take advantage of a preemption of state law by federal law in certain circumstances.
If you are in a state that permits pre-payment penalties, and you sign loan docs that provide for one, you're stuck with it. The law in almost every state presumes that you both read and understood a contract if you sign it. ALWAYS READ THE FINE PRINT.
The Federal Trade Commission urges consumers to be careful of pre-payment penalties on car loans. See https://www.consumer.ftc.gov/blog/2014/04/financing-car-ask-about-pre-payment-penalties
The Consumer Finance Protection Bureau (also a US Federal Government Agency, and lending watchdog) also warns you to be careful of these, and very clearly says that it depends on the state and what your contract says. See https://www.consumerfinance.gov/ask-cfpb/can-i-prepay-my-loan-at-any-time-without-penalty-en-843/
You might also find these articles useful:
https://www.carsdirect.com/auto-loans/understanding-car-loan-prepayment-penalties
https://www.creditkarma.com/advice/i/what-is-prepayment-penalty/
Then, of course, besides straight-up prepayment penalties, there are the other tricky ways they get you to pay the interest up front, such as pre-computed interest loans, and the so-called Rule of 78 loans. Buyer beware.
I urge you to please read the fine print of your loan documents BEFORE you act. If you just make the payment, you may end up costing yourself a bunch of money, depending on what the documents say, and what the applicable law permits. If you have questions or don't understand your rights or your contract, I suggest that you consult an attorney in the appropriate jurisdiction.
If it's written in the contract and you sign it that is a legal binding Document end of subject ! SMH
Except the banking laws prohibit it, that’s the end of the true story
No, that’s not the end of any true story, unless you’re in one of the 14 states that disallow prepayment penalties.
Please provide a citation to the law you're relying on for this.
