I am currently looking to lease a 2019 Toyota Rav4 XLE. Some of the dealers claim that there is no such a thing like MSDs and they really insist that. Also, some say MSDs won’t make big difference even though it brings down MF from 0.0008 to 0.00008 so go figure. Here is my questions, why dealers don’t want to deal with MSDs? how does it affect them? any financial loss? I like to learn why they try to avoid it like the plague.
I imagine for some, it’s used so rarely they’re just not experienced in dealing with it. A lot of salesmen don’t seem to understand the math behind leases so they see a down payment lowering the monthly more, so it seems to make more sense, ignoring the total cash flow.
It reduces by .00008. I wish it was .0008
Most dealers just don’t train on it. It doesn’t cost the dealer anything
Last I heard from a GM that it’s got to do with the finance guys earning flats on the msd deals(so not a lot of back end profit for them) and what @Cody_Carter said some just don’t know how to.
Guess it depends on the payplan but the flats from tfs suck anyways. $100 under 30k - $200 over 30k
Yeah I heard some stores doing average on the whole f&I department so if one deal is a flat it ruins their average earnings.
Well, that’s kinda not our problem so if they’re saying no MSD, then they likely also participate in MF markup, junk add-ons, and incentive hide and seek if you look closely enough. Find another store or figure out how to educate them.
Doubt educating them would work, better off going to a different store that is willing to work with you. Always shop around different stores.