List of Lenders that Allow MSD for Money Factor reduction

Wiki
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Volvo allows msds after I forgot to ask for them

And Hershey is a former broker he knows them all

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Yes - but - Mazda won’t let certain states do MSDs (regardless of where you buy the car from) - and often times Mazda dealers hate doing deals that involve MSDs because there’s often funding issues. YMMV

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@AutoNinjas Thanks for respond , I know certain state like NY never allow MSD and I have never seen one pay reduction, but for Audi do you have reduction per MSD?

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Now I’m just gen-pop. :frowning:

Guess I have to write a paper on this stuff, ???, profit?

Audi has 10 MSDs, first one does no reduction so you can have up to 9 effective.

Limited reports of NYS signees getting MSDs from out of state dealers and contracts funding. Each MSD (sans the first) provides a 0.00005 reduction

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Thanks, So 0.00005 Max 10 MSD (0.00045) for reduction?

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NY allows MSDs up to something like $700, AFAIK.

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There’s a footnote (#8) on the captive matrix that links to the detailed post about MSDs in NY

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Sorry, Potato. Didn’t click on your link :grin:

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No need to apologize :bear:, I also realize many people who visited that page probably didn’t read the footnotes. But I tried my best to link to threads where many of the background questions were answered - in that case, I linked to the relevant laws in NY because someone asked for the reference, so nobody ever need look that up again.

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No on ally and usbank. Tfs prob has the best msd rate reductions of anyone I’ve seen. Many cars get around a 50% return over 3 years maxing out at 9 msds.

No msds for nyers def hurts though. I think I would sell 10-15% more Toyotas if they did. Dumb law not in the best interest of their constituents

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I wonder what the spirit of the law was, MSDs, aren’t they intended for buyers with lower credit ratings to help them buy down the rate closer to prime?

Possible protect vulnerable lendees sort of thing?

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I tried to look up why that law exists in NY and couldn’t find much. I would speculate it was meant as a consumer protection but like most laws, just hurt more than it helped. I’d imagine a decent amount of money leaves the state to NJ each year from the small minority of people that use and understand msds.

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Thanks, How much reduction per MSD? do they have one pay reduction as well?

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I like the idea of consolidation, if we can add all of them to your table.

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The reduction per msrp will depend on the vehicle but figure around $7-10 per msd. You can do a one pay, I don’t price them often so I would have to look at one again to see how much that saves over msds.

The last tundra one pay I did was around 685/mo no msds. 600 with msds. One pay around $20k so effectively $550/mo.

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Yep, that’s the reason.

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To clarify
Lexus/TFS/Mazda

9 total MSDs
MF Reduction per MSD = 0.00008
Max total reduction = 0.00072
One Pay = 0.001 reduction

Porsche/PFS/Lambo
One Pay reduction - 0.0007 from base MF

Volvo(BOA)
10 total MSDs
MF Reduction per MSD = .00005
Max total reduction - 0.0005

MBFS
10 total MSDs
MF Reduction per MSD = 0.00007
Total reduction = 0.0007
One Pay reduction = 0.0008

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Nissan also offers MSD reduction.

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Yes up to 5 for a total of 0.0002 reduction.

All this appears on the LH Calculator.