paying into lease NMAC

[babbles]

I have a 39 month lease through NMAC.  I absolutely hate the way they calculate extra payments and then again maybe I don't quite understand the process well.  I am 14 months into the lease and I attempting to sell the vehicle to carmax in about may.  Had an appraisal done by them a few days ago to see where I am at and based on my extra, (I hope) payments I am on target to be at their offer minus some more depreciation by then.  Talked to NMAC the other day because  I didn't see the extra payments being applied but in fact they just pushing back the due date, and by the way dosen't reflect on the statment.   Said something about buidling up the credit.  Do my lease payments work like this when you make extra payments?  I thought Honda Financial was a little different.   Appreciate any input.  

[mross1080]

From my experience with leases and getting out of them there are 2 ways.

1 Buy the car from them. Thats the Payoff amount that changes on a near daily basis. You can check on the website or call in to find out.

2 Find out how much you owe in lease payments and pay that entire amount and turn the car back in. So rougly if you have a 3 year lease and your 1 year in your payment times 24.

What you best off doing and I have done several times (I dont lease anymore) If you want to trade in the car dont pay anything extra to the lease its not really going to help you since you still have a ways to go. Save everything extra you have and use it to pay the amount your going to be upside down in the trade. That means if you payoff amount today is say 10k and carmax is giving you 8k for a trade to pay down the difference so you wont have to finance it back into the new car. Trading in a lease is quite simialar to traditional financing the payoff is usually a bit higher though.

What car do you have and what are you looking to get?

[babbles]

Thanks for the reply.  I will try to explain.  Regular Payments $532.13 @ 39 mo.  I made  extra 2 payments thus far:  528 and 628..  Statement reflects credit balance of -$-6.54 payment was due nov 1, 2011.  Dosent make sense.   So if I have this right, from what you are saying and pretty much what NMAC said, all the extra payments are doing are just pushing back the due date?  The lady told me i was due Jan 1st, should be  Feb 1st. for a payment.   So should I just not pay till  the next payment due and bank the 2 payments I would have made for Dec and Jan?  This has totally threw me off!     I will defenitely do what you recommend and bank the extra payments till may.  I am going to sell the car outright to carmax for now with no car in return.

[JagerBombs89]

Check the FAQ on NMAC website.  Unless you send in a principal payment to their specified address, it all goes to next month's payment.

[cdtotten]

Just to clarify, for lease payments.... unless you specifically mark the payment as principal only (usually only available via the mail to a special address and the check being designated so... any additional payment you make will be applied to the next month's payment. If you keep making additional payments, you will only be paying future month's installments, not affecting the principal or interest paid.

[babbles]

Talked to Nissan again yesterday and yes i will just hold the extra payments myself until i ready to sell.   This is not even what i was expecting but you live and learn.