I recently got a recreational vehicle loan through on of Camping World’s lenders. It’s a 6% $15,000 note for 12 years.
I negotiated the unit $12k under MSRP.
One of the things I was hesitant on was financing through them versus paying cash upfront. The sales manager says the financing was optional but it would be difference if $3k out the door if I decided to not finance.
I was comfortable with financing knowing: 1. That dealerships make some of their revenue through the selling financing 2. The loan product is a simple interest loan. I asked explicitly to ensure it was not precomputed interest. 3. Taking the financing would help with negotiations. 4. There is no early prepayment penalty. 5. The payments are not a factor. 6. I could pay off the loan at any point I wanted.
I was upfront with saying I would take their financing knowing that it would help my bottom line and theirs as well. I also made it known that I intended on paying it off immediately.
The only caveat their financing person stated was that I should consider keeping the loan for a minimum of 12 months because it would help my credit score. They said any loan less than that would never show up on my credit score.
I told them it was not something I was particularly worried about because I’m hovering 780+ at under 30 years old and I already have a 2 year old mortgage.
At the end of the day it got me thinking... Is there any benefit to me holding the loan for a minimum amount of time (like the 12 months the dealership recommended)? Is it true loans payed off in the first period don’t show on your history?
The only piece of info I can’t offer is the final pay off amount. The statement came in the mail yesterday. I plan to call and ask tomorrow.
PS: I just thought of this while typing this out on mobile. Is there any benefit to me paying off a but $1 to keep it as an active loan on my history?
Submitted November 28, 2019 at 08:25PM by InDelAc https://ift.tt/2pZHNts
