I’m looking to lease a four-wheel-drive Pick up truck preferably a ram but open to the best deal I can get.How do I get a deal it should be receptive to multiple security deposit MSD. This terminologies and tactic is brand new to me.
Not all brands allow MSDs, just FYI. But when they do - you insist on it and move to a different dealer, if they refuse.
If you’re in NY, your first step is going to a dealer not in NY as they can’t offer MSDs
6 Likes
RAM, Ford, Chevy, Ally and US Bank don’t have MSD programs. Toyota and Nissan don’t allow NY residents to use MSDs, no matter where the dealer is. Are there any other manufacturers with 4x4 trucks?
Only other one I can think of, if you can consider it a truck, is the AWD Ridgeline. Honda doesn’t do MSDs either, so there isn’t an option it appears, for a NY resident.
Assuming you’re leasing a Tacoma, as @Jon said Toyota will not allow msds in NY, we’ve had these deals with Lexus and tfs kicked back.
In your particular situation it sounds like you would be better served identifying the brand and bank that offers the lowest money factor/interest rate for a truck that you like. MSD should be used as the sprinkles on the cake that is a good deal, assuming they are offered and allowed. The cake should ideally be built on good dealer discount, high incentives, high residual value and a low interest rate.
2 Likes
Thanks for the information, very helpful. With that said, is there an area on this site that discusses how to present msd’s to a deal? Have no problem going to Pa, mass, or any other state for a deal since will also be looking for a lease for my wife.
keep in mind that MSDs don’t always make sense (can’t be applied in full amount) - when MF is low already.
You say to the dealer (assuming they’re from a brand that offers MSDs and in an area where they can be used) “Please apply max MSDs”
Don’t be surprised if the dealer doesn’t want to, or doesn’t know about MSD’s. And you can’t force them to apply it if they are unwilling/unable.
The reality here is that if you’re a NY resident and you want a truck, MSDs are not an option from anyone, so don’t even worry about it.
4 Likes
OK but can you answer this who started working with MSD’s and how does it favor either party? I can see it provides less financial risk to the lender But how does it save money for the buyer who uses it?
As a buyer, you are essentially buying down the interest rate on the loan. In most (if not all) instances, you get that money back at lease turn in.
See the BMW wiki for an example:
TL;DR: the bank gets multiples of your payment as additional collateral, in exchange for a reduction in the rent charge.
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.