Dealer says MSD is a saving's account

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

A lease worksheet looks something like this…

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

My thread here may be helpful - 2019 Lexus RX 450h Luxury - Good Deal + Help with Calculator - happy to help you with all that I have learned. This is my first lease, too. We are ready to walk - just getting 7.5% and I’ve been asking for 9% all along.

I posted my lease sheet there.

Go here - - to ask for the MF, residual value, and what incentives are there. You should get base MF and apply the 9 MSDs that way you get the lowest cost on the money.

You’re lucky that you have so many Lexus dealers around you. Here in the Minneapolis area we just have two and they are linked - so getting discounts it pretty difficult.

thank you. i was following your thread for a while. edmunds forum is where i went first . I think my effort to getting quotes and getting them beat has made my dealers around me hate me…

Physically visit a few - that will help. Relationships do matter.

i see. is it bad of me wanting another salesman instead the one I was randomly assigned to? he has not been helpful and very spotty on replying email

Nope! I would go to another dealer.

from what i could gather longo is the only volume dealer and they are more likely to beat other smaller dealer’s quotes…plus i want the ultra white and not all dealers have ultra white so I haven’t contacted those dealers

Don’t visit any. Wasting time.
Send an individual email to like 5-10 lexus dealers. It is easy in so cal. Sounds so far you are dealing with only 2.

i just get the best sale price before incentive from one, and i start emailing one by one with the new quote to be beaten. out of the 10 dealers I sent to 6 because the other 4 either dont have the color i want OR they just don’t reply at all

If you want a very specific car / combo it limits your ability to negotiate. You need to decide if you want the lowest price on a combo you like or you want to pay more for a combo you love. Personal choice, I usually go for the lower price, it is only 3 years then onto the next.