Paying out car financing

[likwid]

Hey guys,

I owe around $10,000 on my car and am looking to pay out the remainder in one lump sum. The car is has 0% financing, and my financing is through the dealership. However, in the paperwork it says the financing is through Ford credit or something like that, can't remember off the top of my head. Anyways, for anyone who has ever paid off the remainder, do I contact my dealership or the finance company to organize this? Did they just remove it from your bank account the way monthly payments come out? Any other info would be appreciated as well.

Thanks

[supe]

If its 0% why are you in a rush to pay it off?

And to answer your question I was told it depends on the dealer. Honda told me to do it through the dealership. Nissan told me to contact Nissan Canada.

[likwid]

Originally posted by supe
If its 0% why are you in a rush to pay it off?

And to answer your question I was told it depends on the dealer. Honda told me to do it through the dealership. Nissan told me to contact Nissan Canada.

I need the debt off to help my credit for a big purchase. Thanks, how did you pay?

[likwid]

Originally posted by likwid


I need the debt off to help my credit for a big purchase. Thanks, how did you pay?

[Redlyne_mr2]

If you're looking to buy a place I would talk to your bank first. It makes more financial sense for you to take that 10K and put it as additional cash down on the mortgage and just keep the 0% financing loan going. Any banker with 1/2 brain would understand this. If you just dont want the burden of the car payment then call Ford credit, have them quote you an up to date payout and either mail a cheque to them or drop it at the dealer and have them send it on your behalf. Keep in mind non certified funds will take a week or so to clear so it will take some time before you can get your letter of release.

[Clever]

I did this last year on my Durango for the same reason too, I contacted the dealer and they told me the financing was done through Chrysler Auto Finance, gave them a call and went into their office and paid.

Give it some time to show on your credit report though, I think it did not show that the vehicle was paid for. for at least 2 months.

EDIT: Redlyne beat me to it.

[scat19]

Why don't you call them and find out? :banghead:

[911fever]

wow at 0%, that's pretty good

[benyl]

Originally posted by scat19
Why don't you call them and find out? :banghead:

Because that would be too easy. Besides, Beyond is all knowing.

[likwid]

Originally posted by scat19
Why don't you call them and find out? :banghead:

Obviously I could call, but it's just as easy to ask here and know ahead of time.

[likwid]

Originally posted by 911fever
wow at 0%, that's pretty good

What are you referring to?

[ExtraSlow]

Talk to whomever is giving you the credit for your "big purchase." If it's a mortgage, Ten grand larger down payment on a house will do more for your ability to qualify for a mortgage than having less consumer debt. Any lender should agree.

[jonnycat]

You may be able to set up Ford Credit as a bill payment. I did this with GMAC, and did it through online banking.

Just give Ford Credit a call, have your customer number or SIN number handy, let them know what you are doing and they will set you up with payoff instructions.

But yeah I'd keep the 0% loan and use the $10,000 as payment on whatever you're buying, which is most definetly not 0%

[2002civic]

i still don't see the point of paying of a loan of 10%, as stated any banker should let you keep this loan unless you have crappy credit history

[likwid]

Thanks for the info. I am trying to clear my debts to be able to get my name put on a mortgage that my girlfriend had co-signed with her dad, so we can remove him from it. This will help ensure that I will be able to. I will then sell my car and use the money from that to put on a down payment for a new car.

[benyl]

woah....

Never, ever co-sign a loan with a girlfriend. That is asking for trouble my friend.

[likwid]

Originally posted by benyl
woah....

Never, ever co-sign a loan with a girlfriend. That is asking for trouble my friend.

It was actually meant to be our house together, but due to credit issues, I was unable to sign the mortgage with her. Her dad co-signed so we were able to get the house together, but he would like to get his name off there and have mine put on as soon as possible.

[Clever]

I agree, bad idea to co-sign with a girlfriend.

Even if you pay off your car tomorrow that might not reflect on your credit for a few months. And if you have credit issues now, when you get a new car you probably will not get 0% financing when you buy your next car, so that's something to consider. I would recommend that you think about what you are planning to do a lot more before you jump the gun.

[likwid]

I appreciate the comments, but I am not here looking for life/relationship advice. The house is mine, but my name is not on the mortgage, which is why I am trying to do what I can to allow my name to be put onto it.

I am not looking for a car with 0% financing at all. As I mentioned a few posts back, I will be selling the car that I am paying off after my name is put on the mortgage, and will be putting all of that money towards a down-payment on a new car.

[funkedelic2]

Originally posted by benyl
woah....

Never, ever co-sign a loan with a girlfriend. That is asking for trouble my friend.

Or any friend for that matter. I think the only people you should ever co-sign for is your wife or your kids. (If their responsible)

[ExtraSlow]

I think you should talk to the Mortgage lender about your situation. As Clever said, any change in your car loan won't be reflected in your credit report for a few months. If you can work out a deal with the Mortgage lender where you put the $10,000 towards the mortgage, and you can prove income, I would suspect that they would allow you to sign on.
Or, sell that car now, and use that money, plus the $10,000 to put down on the mortgage. That reduces your debt, and gives you more cash to use as a down payment.
Most mortgage lenders aren't robots, they don't just look at your credit score. They'll take individual situations into account.

[88CRX]

Originally posted by Redlyne_mr2
before you can get your letter of release.

If you pay out a car loan should they send you this?

I've recently paid my honda loan off early but I never received anything from them in the mail.... they did stop the monthly payments so I know it's paid off.

[ianmcc]

Contact Ford Credit about paying it out and getting a discount. I know it's 0% but it's the debt load you are trying to clear up. Ask Ford Credit if they will lower the amount owing if you pay it in full. I read somewhere that Ford Credit in the US has offered a discount if you paid the balance in full, esp. 0% loans since they make no money on interest. They may find a payout is beneficial to them.

[Redlyne_mr2]

Originally posted by 88CRX


If you pay out a car loan should they send you this?

I've recently paid my honda loan off early but I never received anything from them in the mail.... they did stop the monthly payments so I know it's paid off.
Only if you ask for it generally.