MSD - Multiple Security Deposits

A Toyota dealer told me today that MSD’s (Multiple Security Deposits) can only be used if you are at a lower than the top tier credit. If you have the top tier credit, it will not lower your MF (Money Factor).
He did not know what MSD’s where when I first asked about it. He said he called Toyota Financial Services to inquire about it and that’s what they told him.
https://www.toyotafinancial.com/pub/w/planning_center/financing_options/lease/multiple_security_deposit_program

Try another dealer. What general area are you in?

BS. Used MSD with top tier (brought MF down from an already subvened .00056)

I am in Lexington, Kentucky

I believe the only rule with MSDs is that it can’t buy it down to 0 but pretty close … something like .000001 (5 zeroes in front of the 1)

Same thing was told to me by a dealer in the Cleveland, Ohio area. There was the salesman, a sales trainee, and the sales manager trying to get close to a final lease figure I was happy with. When I asked about the MSD’s the sales manager made an unpleasant face and said those were only used by people with poor credit! I left right after that.

Knowing from reading this forum for the past several months that even with brands that allowed MSD’s there were still many dealers selling those brands that had no idea what or how a MSD could be used.

I went to a different dealership and brought up the MSD’s with them. At first they were also unsure about what they were. However, I showed them a copy of a Leasehackr Calculator printout I had with me showing the difference of a lease with and without the MSD’s. They took it to their finance manager who had previously worked at Lexus and he was very familiar with MSD’s. He said he wrote many deals with MSD’s at the Lexus store.

I ended up leasing the vehicle using 9 MSD’s and was told I was only the second customer to ever use them that the finance manager could remember since he had been at the Toyota store for several years!

I have Top Tier credit, and took the MF on the Highlander down from .00149 to .00077

It makes sense since it is called a “security deposit” after all. What is interesting is that the “gotta have it now” mentality of the US consumer makes advertisers post “No Security Deposit Required” on almost all the lease ads (most people don’t even read this part).

But with “hacking”, it usually means using something not for its intended purpose as long as it works towards the goal which is to get a great lease.

Another dealer in Lexington told me the same thing. Toyota on Nicholasville and Green’s Toyota.

“The Highlander is a subvented rate aka money factor. Nothing I can do or you to lower that rent charge. Security deposits are for people with low credit to help or get the bank to take a risk on them. But in short sounds like you want to pay less rent aka interest on the lease. More you put down, the less you pay back. So just put more down. Also keep in mind at end of the lease with you have low miles or will, you should or will have equity in the Highlander that in turn will put more money back in your pocket. So it’s a win win. Let’s do it! You ready to lock this deal in? We are selling the Highlander’s as fast as we get them.
Sent from my iPhone”

What dealer did you end up using? I’m in the market for a Highlander as well and want to save as much hassle as I can . . .

Greetings from another Kentuckian. I live in Clay City.