dealing with a internet sales manager here in socal and told him I’ll put down 5 MSDs to lower my payment and I gave him the number according to the calculator and he told me MSD is more like a savings account and it wont lower my monthly payment…
Don’t know how I feel about that… I know (from reading LH) that MSD is refundable and lowers MF and MF directly affects monthly payment…
Find another dealer?
Yes to your last query.
If they were a “savings account” why would anyone do it? There are better savings accounts than those that offer 0% APY
exactly…
right now i got dealer A that gave me a low quote that no other dealers able to beat. Dealer B hasn’t been responsive to email so I don’t know if B is able to beat it or not.
Now dealer A is pulling this…don’t know if I should walk away or just take it without MSD.
The quote he sent me is a little confusing…told him I want $0 down and gave him the number based on calculator and he gave me a quote that says 1500 cash down. Told him that 1500 is the drive-off including first month and he said yes it’s the same thing… Maybe it is but it just doesn’t feel right… Am I overthinking it?
Get a breakdown of the lease worksheet. Post it.
Don’t just pull the trigger till you’re certain you understand the contract and ageee to it.
If they want you to sign, they’ll provide the data transparently.
thank you. didn’t know what that’s called but now i know. Lease worksheet.
First time leasing. super stressful
Breathe. Take it easy. It’s a project that rewards time spent planning and reviewing. Hurry or cave to pressure and you’ll make a mistake.
this is all he gave me. He said the non tax fees include acquisition, registration, license, etc…The cap cost before rebate/incentives is 55778. I qualify for lease cash and college grad. I did confirm with him that i’m not putting $1500 down as down payment but rather as drive-off and he said ya.
The 
used the word cave. Love it 
Because MSDS are originally designed for folks with poor credit that couldn’t get bought on a lease.
MSDs are just hackr friendly if you have solid credit.
However, the sales dude has no clue what he talking about.
Most sales folks don’t deal with MSDs often, if at all, and often times don’t know what they are. You’ll either have to put time in explaining or just give up and find another car/dealer.
It’s like a savings account PRECISELY BECAUSE IT DOES LOWER THE PAYMENT via a lower MF. What’s the advantage of giving X number of MSD’s if it won’t lower your payment? A low MF translates to a lower payment assuming the adjusted cap remains as before.
And, yes, the 5 MSD’s is equivalent to putting it into a savings account. The only difference is that the $2,500 does not earn interest. It’s actually held in escrow. What does earn interest is the monthly savings and does so at the interest rate implicit in the lease. If the difference in monthly payment amounts to, say, $20 for EXAMPLE, for a lease whose term is 36 months, then the earnings associated with the 5 MSD’s is no different than putting $20 into an interest bearing savings account each month earning the interest rate implicit in the lease. So, if the interest rate is, say, 1%, then the future value of $20 per month for 36 months is $731.21… nothing to sneeze at. If the 5 MSD’s amount to $2500, then it is as though the $2500, held in escrow, earned $731.21 over a 36 month period for a rate of return of 8.93%… all tax free!
So, yes, the dealer is correct that it’s like a savings account. What I don’t understand is their claim that it won’t lower the payment! What incentive is there if MSD’s don’t lower the payment? What does he think a lower MF does?
hey guys. thanks so much for the input. I’ve explained it to him but he said something about system won’t be able to put MSD in. MSD issue aside I’m ok with the $0 down and monthly payment after tax. The numbers on there looks correct but the difference is his lease worksheet says “1500 down” and 584 a month, when that 1500 should be DAS (first month, tax on cap reduction, registration/dealer fees) but on that worksheet on the side it says non-tax fees the dealer said that ~1400 includes acquisition fee.
On the calculator the 584 is the correct amount if i do $1500 DAS with acquisition ROLLED into payment. If i pay acquisition upfront to be part of DAS then my monthly would be 560.
I’m sorry if i’m not voicing my concerns correctly and/or clearly. Like I said, first time leasing so I don’t know if i’m being EXTRA nitpicky about wordings.
What do guys think of the deal. According to the calculator it has a score of 9.9
Please post the dealer’s lease worksheet so we can discuss intelligently.
I did in the above post. Or is that not it. I asked the dealer for the lease worksheet and thats what he gave me
I see. I dont even know how to ask the dealer since i asked for lease worksheet and he gave me that. What can i say to him now to let him know that what u posted is what im looking for
I’ve had to show a generic lease worksheet (like the one delta posted) to the dealer in order to get what I wanted.
You can do as Masher82 suggests or, print the one I posted to show the dealer. The dealer knows darn well what a lease worksheet is because they’re required to submit it to the fund provider as part of the documentation packageonce the lease has been finalized. They’re just playing stupid.
It’s so cal, there’s like 10 or 15 other dealers. Deal with a different dealer. Take the discount you got from A to another dealer where they’re more up front about leasing.
Ask for the lease breakdown, money factor before and after msd’s applied
Well thats what i did and was 1. Hoping to get 12% off msrp before incentives/rebates and 2. Hoping longo lexus to beat the lowest one ive gotten so far, which is 11% off. Unfortunately no other dealer wants to play ball and longo was being…kind of a dick and not responding to my email. Asked another sales if i can switch to him and he sent me back to my original salesman. I sent that picture of lease worksheet to him and see if he’ll suddenly remember what it looks like
