MSD - how do they apply to a dealer?

How does an MSD apply in the case of a marked up money factor? For instance, the dealership marks up the MF but I pay MSDs to bring it back down to the buy rate, or close to it. Does the dealership then lose out on that extra interest they were hoping to get, or are they the ones who get to hold the MSD during the lease period?

Not an ideal scenario, but might be one I come across.

They still make the spread on the markup, dealer doesn’t keep msd’s, they are held by the bank/finance company. Negotiate buy rate, then apply msd’s

Yeah I’ve been told to go fish on getting the buy rate because the rest of the deal is “so good.” I don’t dispute that, but the deal would be even better if the MF was at buy rate.

You know what i would do in your situation? I’d go fishing.

I’m not sure what you are leasing, but someone will give you the non-marked up money factor.

In regards to the MSD question, MSD’ing a marked up money factor doesnt make sense. Let me yell alil louder for those in the back, USING MSD’S TO PAY FOR A MARKED UP MONEY FACTORY DOES NOT MAKE SENSE.

Now that we got that out of the way, i hope you have a great day, carry on :slight_smile:


Love it! That’s sage advice.

I have no problem if the dealer marks up the MF for a larger discount. It’s all bookkeeping

Doesn’t matter how they get to the final agreed upon number, as long as they get to it


dealer basically told me to walk if I wanted buy rate, sometimes that extra discount is just too good to pass up.

Without seeing everything, its hard to evaluate. But if a dealer said “walk if you want the correct buy rate”, i’d be walking :slight_smile: Fortunately being in SoCal I have a lot of options for dealers.

Yes, but if sales treats you like shit, how would i imagine the rest of the dealership will treat you…

I’m not sure I follow

If I agree to an awesome number then in the finance office, the discount increases and the MF increases, I could care less if my DAS and monthly we agreed upon w the sales manager remain the same

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We’ve sworn off MSG. The dangers are well documented.