lease management and paying off leases early

from GalCiv2 Forums
there doesn't seem to be a change or fix to have any benefits to paying off a lease/loan early.

if you take a lease/loan and attempt to pay the loan off early, there is no adjustment for the amortization of the loan.

my suggestion is to have a simple 'credit rating' for the initial loan based on debt (existing leases) to equity + future income (maybe a small adjustment for diplomacy). when a lease is taken out on that turn, there is a interest rate associated w/ the credit rating. if a loan is paid off early, it should only be the principal amount and maybe a small early pre-payment fee; while the remaining future interest payment should be removed from the early payment of the loan.

otherwise pre-paying off a lease early has no benefit and 1x the loan is taken out, there is no reason to ever pay it off early.
3,711 views 6 replies
Reply #1 from GalCiv2 Forums Top
I too would like to see a better 'deal' for paying off a lease early as you would get in RL. I am aware this game is not based in RL but having to option to pay it off early should bring you some financial reward. Cari/Brad is this going to happen?



Harry Potter Fans - Join Dumbledores Army and fight in the Metaverse together

Reply #2 from GalCiv2 Forums Top
otherwise pre-paying off a lease early has no benefit and 1x the loan is taken out, there is no reason to ever pay it off early.



There is the 20K threshold benefit!
Fences - Organize your desktop icons today!
Reply #3 from GalCiv2 Forums Top
there doesn't seem to be a change or fix to have any benefits to paying off a lease/loan early.

if you take a lease/loan and attempt to pay the loan off early, there is no adjustment for the amortization of the loan.


As far as the game is concerned, all interest is precalculated for the life of the loan and capitalized from the start. I think Cari made some mention of looking at separating them in the future so there's some benefit to paying loans off.
Reply #4 from GalCiv2 Forums Top
Real world loan arrangements can include penalties for early payoffs. If it is to the lender's benefit to earn interest for the expected life of a loan rather than have the capital back, they can write a contract that makes you pay a fee if you want to close the loan early.

Mind you, I agree that we should be able to shop for a good credit deal in the game. But I'm also really hoping to see the GC2 money system eventually grounded in something like a next-generation UP or some other consortium that can support this mysterious BC currency.

The more I think about this most basic level of the GC2 economy, the more it looks like an atavistic remnant of the days when you could only play as the Terrans. Money as we currently practice it is a fundamentally social phenomenon (the value of the dollar is based entirely on consensus), but in GC2 it as if the entire galaxy has some common gold standard based on an unnamed commodity.
Reply #5 from GalCiv2 Forums Top
I've downloaded a mod from the Library (I couldn't remeber which one) that has the "hidden" Interest Rate racial ability. I was experimenting the game with that mod enabled and discovered the mechanics of the above ability: a bonus or a penalty decreases or increases, respectively, the lease time, without altering the values. So a 50% bonus means a leasing of a ship 50% "faster" to pay that same amount w/o the bonus, therefore making the lease operation 50% cheaper. Example:

Without the Bonus:
Colony Ship
1314 bc.
Lease Values and Time: 334 bc + 24 x 114 bc.

With a 50% Bonus to Interest Rates:
Colony Ship
1314 bc.
Lease Values and Time: 334 bc + 12 x 114 bc.

See that? The values became still, but the time needed to pay the leases was halved and so the lease will cost half of the normal price. This is indeed a nifty racial skill that should be included in a next update!   
Reply #6 from GalCiv2 Forums Top
I remembered! It's the "Implement All Racial Abilities" by General Pants. Furthermore, I want to thank him for the excellent mods he made and specially for the above one.