Octane lending AKA Roadrunner Financial billing practices

[Samm Rhys]

Says this is the right place for purchase topics, insurance, paperwork, etc. So I was wondering if any of you use or have used Roadrunner Financial (Octane lending) for an RV loan. I have a question regarding their billing practices.

I made my first RV payment today and it appears they only applied like 13% of the payment to the principal and 87% to interest. My question is, is this legal and if so is there a way to get them to pay more toward the principal besides extra 'principal only' payments.


Samm

[Morich]

Loans can be set up in lots of different ways, so what makes a difference is in what the paperwork says.
If it is setup so badly that it really hurts, it can be worthwhile to go get a better deal and pay off what you have.
But what does the paperwork say about early pay off?
There are times when business operate as much on making loans as they do on selling the product!
If this was done in Florida, it may be bad as that is not a "customer friendly" state.
We have much the same situation in Texas, so we often work the finance portion of the deal in other states, so that we appear to pay cash here in Texas!
They whine and fuss but when it gets down to selling or us walking, they can "talk to the boss" about taking the loss"!!!

When I pick up my wife's purse, she knows the drill! I never make an offer on anything I can't live without!

[Scotty B]

That's kind of how amortization schedules work based upon the same monthly payment regardless of vendor...the % over time will shift the other direction as you pay the principal down.

[bigb]

Go here: https://www.calculator.net/loan-calculator.html and put in all your numbers to see how much interest you will end up paying, then click on "View Amortization Table" and it will show you the amount of interest vs principal on each payment.

Then go here to play with the numbers and see just how much interest you will save by adding principal payments https://www.bankrate.com/loans/auto-...ff-calculator/
It's surprising just how much even a small additional principal payment can make over the life of the loan, it keeps compounding in your favor with each additional payment.

Like Richard said, beware of pre-payment penalties which typically are only early in the loan term.

[Ted Fyden]

ours was all over at first. the wife called a while ago and we were told that it takes a few days for them to actually credit account, so the interest was fluctuating. seems it is accrued daily. Even when we send it for what we consider to be on time if they don't actually credit the account it will fluctuate. we are going to try and get a better system for sending it. I don't do things on auto draw so it's on us.
I try to just enjoy the ride. safe travels

[Ray,IN]

Recall the old saying, "the devils in the details"? Not reading the fine print of any contract_before signing is a poor way to conduct business. Perhaps the most common occurrence is signing a vehicle service contract, we read daily of someone complaining about "they won't pay".
At this point your only alternative is as previously recommended, re-finance elsewhere - if the contract allows early payoff.

[creativepart]

The way to get more of your payment to go to principal reduction is to pay more that the payment due and to make payments early. If the monthly payment is $400 send them $300 twice per month 2-weeks apart every month. All the additional money will reduce the principal and paying twice per month will reduce accrued interest.

If you agreed to buy this 2018 Winnebago Winnie Drop 1790 at too high a price and at too high of a interest rate and for too long of a term you will not come out well on this purchase.