Hi

I am hoping some one can explain this to me because for the life of me I don't understand it.

I took out a 6 year load on my 2005 fat boy in 2013 with HDFS. My payments have been 249.79 a month. I have never been late and never missed a payment.
I have 14 payments left. I am coming into a little money and I want to pay it off early.
I called HDFS and they gave me a payoff number close to $3700. When I add up the 14 payments it comes out to roughly 3400.

I would think paying a loan off early would save me some interest and the payoff would be cheaper not more expensive. They kept giving me the run around

So i am looking for some advise from some people that know financing better then I do.

 

247.97 x 14 is 3497.06
What was the exact number they gave you for a payoff? Is the difference pretty close to one payment?

 

That doesn't make sense at all. Unless your number of payments are off. Based on the monthly payments and months left, you are closer to $3500 than $3400.

 

ask them for the amortization table

 

That only works at the beginning of the loan term higher loan balance=higher interest charges (since it's a percentage of the principal).

It doesn't sound like they're giving you the runaround.

 

I work in commercial finance and let me tell you that the people working in these financial institutions are not always the most knowledgeable to say the least.. Most lenders accrue interest per diem and bill it monthly. I would call again and ask them to send you a per diem pay off and to send you all the details of the payoff in writing. Once you see things on paper, you can then decipher where the discrepancy/discrepancies is/are.

 

Log into your account. If you haven't made one, make one. It gives you the payoff amount.

 

Call HDFS and ask the cheapest way to do it. One way, you just advance payments, the other way you pay off principal only (the cheapest.)

 

Try this: https://financial-calculators.com/auto-loan-calculator
Plug in your numbers, see if your monthly payments match then go to the bottom and look at the payment schedule. Might give you an answer.

 

Thanks all. The payoff number they gave me was $3693.75. They 14 payments of $249.79 = $3497.06 I would think that would be the payoff number not around $200 more. Even if I don't save a years worth of interest like I thought I would by paying it off early $200 is still $200.


I would think it would be simple but I guess I am wrong. It just sucks I can't get a real answer out of them either way.