My monthly lease for my Nissan is $107. If I make extra money one month, will NMAC allow me to pay $214, or even $321 to make it easier on myself should my income dip the next months? Not something I’m looking to do every month, just seeing if its an option.
(Yes, I know I could bank the extra money and continue to pay as usual but this would be easier, if it is possible.)
Thanks!
Yes you can do this. If you make a double payment in one month, your statement for the next month will simply show a zero balance due.
Although many here will say, “keep the money in your account for as long as possible” (and from the counting pennies perspective, this is true), sometimes doing something like this is simply more convenient. I have done this a couple of times when I have had maybe six months left on the lease and I just wanted to close it out.
I wish I’d done a one-pay lease for this reason.
The general idea of making installment payments on an object I can afford to buy outright disgusts me.
Just realize that the finance group may want extra payments may need to be in full month amounts, and not just sending them an extra $30 when you have it.
Best way to know for certain, once your account is online, call them and ask.
Perhaps you could invest that money in BitCoin or Hog Bellies and come out way ahead.
Sure…but why? You’re not really saving much and putting yourself at risk in event or a total/theft.
Saving zero. It isn’t like a mortgage that you will pay off early.
Really no point to do it.
To the OP’s point, if it is useful for their household budgeting, there may be an ancillary benefit.
Good point.
With BMWFS, I know for sure that if,
for instance, if you paid one dollar more than what is due the month before, your payment for next month will simply be one dollar less.
Yep, that’s one…the other would be if there is a pull ahead on your next lease and you have 0 balance for the last 2-3 months remaining.
Also, just to be clear, by paying more this month it doesn’t mean next month when $ is tight the bank will ask less form you (unless you are on your last partial payment of course).
With many leasing companies it may. BMWFS is one of them. One would want to check with their particular leasing company to be sure.
Yeah I’d check with bank before making advance payments to be sure that it pushes next payment due date back accordingly.
And I’m guessing that by doing it one would be increasing risk in the event that the car was totaled/stolen. Similar to a large cap cost reduction.
Think of it this way: your payment includes interest via the money factor. If you’re pre-paying, you’re still giving them that interest on money they earn early and can make more money on your money that you could have held onto otherwise. Why pay the same interest if you’re pre-paying? But, you have to since it’s a lease. If you pre-pay a mortgage, you pay less interest. If you pay more than the minimum on a credit card, you pay less interest. This isn’t so with a car.
You’re better off putting the extra money in a high interest savings/checking account separate from your regular money. For small amounts I heard T-moblie’s account (Yes not a typo) is the best checking/savings account it’s like 4% APY under $3-$4000. Better to keep your money liquid especially when your income vary’s month to month.
My GMC lease is as mentioned above: If I pay extra the amount due the next month drops. My actual payment is something like $415.86 and I pay $416/month but each month the statement says something like $413.xx due and drops like .14 cents each month.
If you don’t already have 6-12 months worth of total expenses in savings, prioritize that before anything that isn’t currently engulfed in flames or hemorrhaging blood.
@trism this is sound advice! Having savings can cushion the months where you make less.