About to sign on an I4 loaner roughly 72k MSRP in Philly. Monthly payment is coming to $480 a month with $480 due at signing for first months payment. If I did 7 MSDs it drops the payment to $438 a month with $438 due at signing. Want advice on if MSDs make sense or should I just hold onto the $3500? I have never done MSDs so want to understand downsides that I might be overlooking.
1 Like
Only downside IMO is if you plan to transfer, it will be harder to find a transfee that understands or has the cash for the MSDs.
No brainer IMO. Assuming its a 36 month lease, you’re looking at 40% ROI over 3 years, or > 12.7% annualized. Hard to beat that return, esp considering its tax free and risk free.
You will get the MSDs back as long as the contractual obligation is completed (complete the lease, trade in / buy out, or total loss with insurance / gap covering).
Also CC @rawlins02 as FYI for type of deals that can be had for i4 with MSDs. Of course, untaxed rebates in PA help…
1 Like