Dealer refusing to apply MSD. Any options or reasons

Ask the Hackrs
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So, I’ve had a couple of dealers refusing to apply MSD. One refused first and then came around to say they can do it (although their offer is $25 off from the other two dealers so that’s my hold up there)

My understanding is that doing MSDs doesn’t impact or hurt the dealer so why would they piss on it and when they are being told that it’s the only thing between us and the sale.

How does it affect a dealership in doing MSD when the customer is willing, and if it simply passes on the benefit, why won’t they do it?

Hoping more knowledgeable folks can chime in with their expertise.

It’s not in New York.

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Too stupid and/or too stubborn to learn something “new”

Walk away instead of pulling teeth from these clowns.

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I was talking to the dealership manager who has been in the industry for years and he still don’t have a good grasp of the benefits. Try to push some more but otherwise may need to find another dealer.

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The reason is simply that some sales managers don’t know how to do apply them and applying them can be a pain. I haven’t had a single customer outside LeaseHackrs ask to do them, so it’s not a popular thing outside of our bubble.

It doesn’t affect the dealer financially outside of the time that takes to apply the MSD’s.

It’s free money for the consumers but many dealers are to stubborn to take the time to do them.

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It’s not popular because it’s not widely known or advertised either.

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Thanks all for chiming in, I agree with everyone.

I guess as a consumer and probably as a business practice, if a customer ‘asks’ then the dealership should honor it as otherwise its withholding a potential profit from the buyer where they have no stake involved and nothing to loose.

Probably treat it as “don’t bother until asked” and equip yourself (finance guys at the dealership) to use it when asked.

If I’m the business owner and if its cost me a sale, I’ll be upset, especially when I really wasn’t losing anything in the first place in giving the msd route.

ps: Is there a policy that can hold them accountable to this aspect of a lease where they cannot refuse accepting the MSD?

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I agree many dealerships don’t wanna bother because it’s a hassle. Other times, the sales person doesn’t even know what it is so you might have to go above his head to get a real answer.
The only reason i could come up with why they might not want to do it is because they mark up the MF and using MSDs to buy it down would counteract that.

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@mp11477 You’re correct it’s not something that’s advertised or really mentioned at all. It’s something that I wish would become more popular but it’s hard to convince someone on the fly to give the dealer another $4,000 to even though they’d be making $60 a month on it.

@hackalease There really isn’t a policy that would be enforceable. I’d just go to another dealer if they don’t want to do it.

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I wonder why dealers don’t advertise deals with MSD down instead of CCR. that way they can advertise lower monthly prices

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You’re correct.

The more I think, I feel like the salesman/dealer has certain cut offs beyond which they are like “the deal is off or they won’t make it without really thinking how the deal is getting sweeter”. Its also because often they give us the sale amount after adding the incentives/rebates and are literally have to be pushed to give a sale amount pre any of the incentives etc.

So, if you’ve got the negotiations down to the wire already and then they see your msd is saving you another 50 bucks, they just flip and are like, sorry not happening. Its also likely that an average sales person doesn’t know (that happened with my talking to 3 agents, they sounded like hearing a foreign word) but again if you are in business and when asked, ignorance or lack of knowledge shouldn’t be an option here. If the corporate is offering a certain benefit to the consumer, the dealership should honor it, in my humble view.

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I don’t think that’s correct logic. Why would they care if you saved money using MSDs?

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Perhaps same reason when they give us the sale price after adding incentives and rebates

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If the same dollar amount is used for CCR instead of MSDs, the monthly payment would be cheaper with CCR.

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I don’t think dealers advertise msd because it is difficult to explain and i think it will turn people off.

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That’s completely different though. Giving you sales price after adding incentives is a mechanism for them to make more $$$ as you don’t know all the numbers. Breaking it down, and negotiating the sales price takes that advantage away from them. I get that thinking if I’m in their shoes, as they lose profit the more they negotiate money away.

In regard to MSDs though, it doesn’t affect them or their profit, so I don’t see why they would care if you saved another 50 bucks. It isn’t coming from them.

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Oh right, I had them mixed up :rofl: I still think that if they advertised MSDs and made it clear that they were fully refundable, they could pull in a few more customers…

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So let’s agree that they are either simply lazy or if not that, then unaware and don’t want to learn either which makes them incompetent :joy:?