Hey all.
So I am toying with the idea of barrowing money to use towards MSD’s on a deal. I want to make sure I can return the money at the end of the lease to the person I barrow from and not risk their funds. So I am curious what situations may result in me losing my Opportunity to get that money back. For example, car accidents, late payments, damages on the vehicle during turn in, etc.
Can anyone provide me with some extra schooling on MSD’s please!
Thanks all.
I’m sorry if you don’t have the money to do msds, then I wouldn’t do them. There is so much added risk for you. Also, if you don’t have the money for the msds, I’d consider not leasing, maybe buying a beater and using that.
Do not borrow a barrow’s worth of money. It is very difficult and tiring to move all that money around. Only borrow what you can afford.
From a purely financial perspective, the interest you would pay on the borrowed money would probably far exceed the savings on MSDs.
Too much risk in this case for little or no reward.
I am not sure what kind of risk there is with the MSDs unless you are concerned about not being able to make the payments. If you can make all of the payments then it isn’t a risk at all really is it? If the car were totaled I am assuming you would get the MSDs back?
From what I understand MSDs are (Multiple Security Deposits) equal to monthly payments. Some companies allow you to use them to buy down the MF (money factor).
When you have to borrow money to pay msds there is risk. EG. interest on the loan for the money, and defaulting on the second loan, adds a whole new layer of loan, which isn’t needed
If you are going to have to take a draw on a credit card or a line of credit for the MSD money that defeats their purpose and you would likely end up paying more interest than you actually saved.
Totally missed that part. Wow! Good point.
I think I read this a little different than other people did. I think he might have been saying he was going to borrow the money from a person like a relative. He just wanted to make sure he wasn’t putting their money at any additional risk. I could be wrong but that is how I read that.
Did anyone think that he may be borrowing from a relative/friend interest free? He refers to a person.
Edit: someone above did 
I would be barrowing money from my father. Not a bank or anything like that. He wants to help out by making my payments lower. I just want to make sure at the end of the lease that I can get that back for him.
Still wouldn’t recommend leasing the car if the msds are a problem.
Correct! 2020202020202020
Just wait till you can do it on your own
Sorry I didn’t specify a specific person guys. My fault on that. I’ve always been. An honest person and I don’t want to screw over anyone without giving them all the risks upfront. Granted my father would probably help out even if he didn’t get money back, but that’s not the route I want to go personally.
I can’t wait. My lease is up this month. And I’ll be financially fine in some short time. I don’t want to buy a cheaper car and be stuck with it for three years if I’m only a little short over the next couple months. If that makes any sence…
To the original question, They are just deposits that are given back at the end of the lease. Lease finishes you turn it in, in good condition and you get your MSD back. On a side note, I don’t think that it is anyone else’s place to tell someone what or when they should lease. You don’t really know their financial situation.
Thank you Bknight.
Honestly I am. Not even sure this is the route that I would go. However I want to educate myself in all the options I have available. This is one that is available so I asked. Worst case I come out a little smarter on the topic and may be able to help others who one day ask the same question. In the end I may lease a cheaper car but I want to make sure I’ve exhausted all my options prior as well. I would hate to. Kick myself afterwards and be like why didn’t I atleast even look into this or that.
this is probably covered but if you are borrowing short term to cover MSD you are probably doing it with a high interest rate, and I would stay away from doing that
Azure. Barrowing from my father not a bank.