Hi guys, my lease on my car ended and I had a 6k MSD which I was told would be returned to me by check.
I bought out the car for it’s residual value but I’m now being told the MSD will be deducted from the residual value of the car, instead of a check being sent to me.
Is there any downsides to this?
3 year lease
Initial residual $25000
New proposed residual $19000
MSD $6k.
I’m not entirely sure. I suppose since I bought it out ,the taxes I pay would be less since I’m buying a lower priced car??? I’ve just never heard of this.
MSDs depend on the OEM, it’s 50/50 on who takes off the payment and who gives you back a check.
If it can reduce taxes if they take it out early, well that’s great!
Since you are buying it out, there really is no other difference that I can think of. If you are trading it in, that’s a whole another issue.
The entire purchase price would be subject to sales tax in California. If they somehow do not charge you tax on the $6k in MSD, you are coming out ahead.
Where are you located.? I’m in FL and have the same question with my Mercedes. MB financial is telling me it gets deducted from the buyout. Was planning on asking the dealership how it works but haven’t got there yet. Lease is up end Dec.