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Many leases or loans through traditional finance companies include “no pre-payment penalty” per se, the way they calculate their payoff amount could mean that you owe more than the original loan itself! We know many of you prefer to pay off your loans or leases early so this could come as quite a disappointment.
 
Many of you have thanked us for clearing up the sometimes confusing loan or lease terms of other finance companies when
it comes to pre-payment.
 
Many doctors use leasing companies in conjunction with purchasing new equipment. You’ve probably used one yourself. It’s convenient and seems like a good deal. And if you ask them, many leasing companies will tell you that their leases do not have a pre-payment penalty for early termination. But look at a sample payoff amount calculated by leasing company, you decide whether or not you’re being penalized.
 
Many leasing companies have their own method for figuring your pay off when you want to terminate your lease. It’s so
easy, anyone can do it. Here’s what you do: Take your monthly payment, multiply it times the number of months left in the term, and that’s your payoff. The leasing company expects to get full payment whether you pay off your lease early or not. That
doesn’t sound like much of an incentive. Where’s your reward for paying off your lease early? This sounds more like a penalty.
 
Vision One Credit Union uses a simple interest method of calculating your payoff amount that can save you thousands of
dollars. Look at the example of how much you can save with Vision One Credit Union on an equipment loan.
 
Lenders have a language all their own. You may believe the language means something it does not. You need to read and understand the contract language before you sign to make sure you are getting what you think you are getting. Vision One Credit Union will always take the time necessary to explain the details of your loan terms and conditions as well as answer all your questions before you commit to your loan. Count on Vision One Credit Union for clear answers and straightforward explanations.
 
 
 
 
NOTE: Many leasing companies continue to charge up to 11% interest on equipment leases. Disclosure of lease rates are not
required and are generally not made available. To determine if your rate is too high, compare the sum of payments on the lease (inclusive of any residual payment) to the sum of payments on a Vision One equipment loan.