Hi All,
Wondering what happens to the MSD put down if I was to get rid of my car on swap a lease (or other lease sites)?
The person taking over the lease assumes all rights and obligations, so they would have the MSD’s returned to them at the end of the lease. If the person who originated the lease wants them back, then they need to be paid back before the lease is transferred.
It’s really the only downside of Msd’s. It’s hard to get a lease assumee to pay for them.
the big issue is that MSD transfer between parties is not something swapalease gets involved in. So it’s a handshake deal so to speak. For example, if you tell a guy “assume my car and once the transfer is complete i’ll give you the MSDs” then he has to take your word for it because the car finance company does not get involved.
I always thought about using escrow.com to facilitate the MSD transfer next time i run into this issue but i haven’t done it so i can’t comment on how well it works. For you it’s not really an issue because you’re looking to transfer out, it’s more of the other person’s issue who has to trust you that you will pay the MSDs after the transfer is complete because you surely won’t give it to him beforehand as he could just walk away with the MSDs and not assume the car.
That sounds kind of in reverse.
If you end up dealing with somebody local or whos going to pick up the car through swapalease then cash or a cashiers check when they come to pick up the car, if they are getting it shipped then you might have to use an escrow company. The bigger issue is that in order to make your lease attractive you may not be able to get all of your msd’s back because once swapalease puts you in touch with the other party the other party may want to negotiate that initial “down payment” to a lower number. but make it long story short you need to get whatever money is stuck in Msd’s back before you hand over the vehicle otherwise you don’t get anything.
agree, MSDs are usually “lease transfer killers”.
Most people either don’t understand MSDs and that you get them back and then it becomes an educational issue, or they don’t want to lay out any cash.
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Or they don’t believe they will get the money back.