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Anyone finance through SETF? How to early payoff?

Discussion in '3rd Gen. Tacomas (2016+)' started by trackdaybro, Jan 19, 2020.

  1. Jan 19, 2020 at 2:56 PM
    #1
    trackdaybro

    trackdaybro [OP] Well-Known Member

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    I financed through southeast toyota financing for their 1.9% incentive and want to pay it off early. I see you can request a “10 day payoff” quote which is really the rest of the loan (principle and interest). This is my first loan so I’m not too well versed, but I’ve been told you can pay toward the principle and not the interest. Does that mean I can pay the remaining principle and no further interest, or am I locked in to pay the sum of remaining payments?

    thanks!
     
  2. Jan 19, 2020 at 3:00 PM
    #2
    AtomAnt

    AtomAnt Well-Known Member

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    This is TW. We spend our money on mods. Can’t give advice on early payoff. Sorry!
     
  3. Jan 19, 2020 at 3:03 PM
    #3
    rnish

    rnish Well-Known Member

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    The interest you owe depends on the principal you owe. So the “10 day payoff” sounds like they will give you the amount you owe if you pay it off in 10 days. That amount should be almost all remaining principle. There may be some early payment fees etc but that depends on the note you signed.

    So no you do not owe all the interest hell or high water.
     
    trackdaybro [OP] likes this.
  4. Jan 19, 2020 at 3:04 PM
    #4
    JoeCOVA

    JoeCOVA IG @MightyJoeFlannel

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    Typically any money above the the payment goes towards principal.

    There are two payoff numbers:
    1. Total loan: this is typically the sum of all principal and interest if you make the minimum payments on it until paid off.
    2. Remaining principal: typically this is what your payoff amount would be if you decided to just write a check, and would go all toward principal.

    It depends entirely on your loan however and what the verbiage is in your contract.
     
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  5. Jan 19, 2020 at 3:05 PM
    #5
    toyotatacomaTRD

    toyotatacomaTRD Senior Member

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    Pay the 10 day payoff. It won't take 10 days for your payment to process (assuming you're paying online and not by check). You'll get a check for the remaining. Congrats on paying it off.

    Don't listen to anyone that tells you to keep the loan at "cheap" money.
     
    PFB, GA_Goat and trackdaybro [OP] like this.
  6. Jan 19, 2020 at 3:06 PM
    #6
    SC4333

    SC4333 Well-Known Member

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    If you would like to payoff you loan, you request the 10-day payoff, they will give you the amount due and you paid said amount. At that point your loan will be paid in full. You will not owe the sum of your remaining payments, only the amount of outstanding principal, and whatever interest is due from your current payment cycle.

    Paying your loan off should be a very easy process, and it's almost unheard of to have an early pay off penalty.
     
    trackdaybro [OP] likes this.
  7. Jan 19, 2020 at 3:18 PM
    #7
    LDrider

    LDrider Well-Known Member

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    Sorry, I'm not sure what your question is...You are correct about the 10 day payoff. What do you mean about paying towards the principal and not the interest ? Are you talking about adding extra payments or a lump sum? That is something different. You can indeed pay extra $$ each month (or just a lump sum) any time you want and apply it towards the principle. If you pay online, when you add the extra $$ make sure to let the lender know the extra money is to be applied towards principal and not to advance a payment. You can usually just check a box if paying online but ask your lender to make sure.
     
    trackdaybro [OP] likes this.
  8. Jan 19, 2020 at 3:48 PM
    #8
    trackdaybro

    trackdaybro [OP] Well-Known Member

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    Ahh thanks everyone. I thought the sum of all payments remaining equaled the payoff amount but I now see the payoff is less than my monthly x remaining payments.

    Thanks everyone!
     
    daytrader2 and SC4333 like this.
  9. Jan 19, 2020 at 6:18 PM
    #9
    daytrader2

    daytrader2 Well-Known Member

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    2" suspension lift/wheel spacers.
    That's not necessarily true. It depends what he does with the money he intends to pay the truck off with. Why would anyone pay off 1.9% money when they can take that same money and put it in a high quality, near zero risk, tax-free municipal bond fund at 3.75%?
    Granted its not that much on say 30K, but still... its money for nothing really. That kind of arbitration on money is a corporate dream. Imagine you had $100MM sitting around at 1.9%. That's $1,850,000/year free money. ($30K is $540/year tax free)
    They really need to teach more finance in high school imo.
    But I agree 100%... congrats on saving enough to even ask the question. You're way ahead of the pack from what I've seen. Pay it off.
     
    Last edited: Jan 19, 2020
    trackdaybro [OP] likes this.
  10. Jan 19, 2020 at 6:32 PM
    #10
    toyotatacomaTRD

    toyotatacomaTRD Senior Member

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    You're talking the difference of hundreds of dollars after factoring taxes/fees. Not to mention the mental relief one gets from not having debt.
     
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  11. Jan 19, 2020 at 6:48 PM
    #11
    daytrader2

    daytrader2 Well-Known Member

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    2" suspension lift/wheel spacers.
    There's something to be said about that, plus he could always lose his job.
    Taxes and fee's on muni's are pretty much non-existant these days with zero commission ETF's and bond funds. On Municipal bonds that is... for tax the purposes portion.
     
    trackdaybro [OP] likes this.
  12. Jan 19, 2020 at 6:58 PM
    #12
    Buckfat

    Buckfat Well-Known Member

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    Just paid off my 2019. Had a lot of equity in my trade in. Owed a couple thousand. Paid off in 4 months of large payments. Also financed threw setf. I was told at the dealer there would be a early pay off fee. When i called setf to ask for pay off they told me there was no fee. Dealer i bought from was horrible.
    Don’t get me started on all the lies the salesman told me!
     
    trackdaybro [OP] likes this.

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