Msd questions for newbie

Ask the Hackrs
1

Hello this might be a dumb question, but I’ve never heard of msd until visiting here.

  1. Does msd work only on lease, or can you use it on a buy to buy down interest?

  2. From what I read i dont see any negatives in doing msd on lease, is there any, I’m not going to default on the lease.

  3. I usually get rid of my leases prior to the end, I’ve been doing lately Infiniti 39month leases and usually able to get out at around the 3 year mark… but I’ve never put msd, if doing this and I exit early what happens to my msd deposit? Do I get it all back? (I know when doing this there is potential for negative equity or having to lease again with same company, but assuming I break even is my msd refunded in full?)

  4. Kind of related to the above question, assuming I re lease same manufacture, with msd on file will this lessen the amount they are willing to forgive for wear and tear? I know the lease has embedded 500 waiver, but I’m usually able to get alot more waived by talking to the lender directly after they send a bill. For example, my last lease I got hit with 1700 minus the waiver was 1200 after calling I was able to reduce this to 500 that I paid them.

2
  1. I believe MSDs only work on leases (I’m not sure on this one)
  2. The largest negative is making sure you’re comfortable with putting cash on the side. From a ROI perspective, I haven’t found anything that comes close to this in terms of guaranteed return. I always do full MSD if the bank offers it.
  3. You will get your MSDs back when your loan is complete. Either by finishing the term or buying the car. If you’re ending early… your loan is complete :slight_smile:
  4. MSD has nothing to do with wear and tear. It’s like buying points with a mortgage.
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3

Thank you,
Yeah the dealer told me same for msd on buy, they said cause on the lease it works cause your paying rent and depreciation, but we all know we can trust the dealer’s :joy:.

When it comes to getting msd back how do they refund? Is it check? If you re lease with same manufacturer can they transfer the msd from new to old?

4

You can transfer. If you don’t lease again… they send you a check.

1 Like
5

Thank you for your help. This should save allot of money

6

Some companies allow MSDs, some do NOT. The easiest way to check is to use the Lease Calculator here (it will show when you select the brand of car) or ask/read the forum. Most dealers may not know about it until they call their finance company. Some brands work with multiple brands with different residuals and MSD programs.

1 Like
7

Thanks, yeah im either doing another infiniti or Lexus and from what I see here both can msd up to 9.