Considering lease with MSDs. Obvious risks are forfeit for nonpayment and unlikely bankruptcy of the leasing co.
But, what about if the car is totaled or stolen? Are MSDs deducted from the insurance payout to the leasing company, leaving me in a hole? This is why I never put $ down on a lease, but don’t know if/why MSDs would be protected.
Anyone know for sure? Does outcome vary by state?
Also appreciate a heads up to any other MSD risks.
If the car is totaled, your insurance company pays out the buy out amount (assuming you have gap).
MSDs are held by the bank as a guarantee for payment of lease payments. They’re uninvolved in the buyout process and transparent to your insurance company.
