MSDs - Risks and Rewards

wrenrome

Sinc e I am in a state that allows MSDs, and since Infiniti allows MSDs, there can be substantial savings on a 2025 lease (~$150-160/mo, which more than makes up for the time value of money (allowing Infiniti to hold the money over the lease term)). The question I have is that I never put money down for a lease, and while MSDs are technically different, I've seen some "horror" stories about what could happen in a manufacturer bankruptcy, how the MSDs could be applied in a total loss situation (even though you get a gap waiver through IFS), and whether that incentivizes nickel and diming on the return side for lease turn in for alleged damage. I would do MSDs in a hearbeat if I knew it was only subject to attack for damage at lease turn int, but the other two (especially given Nissan/Infiniti's precarious financial state) give me pause.

Any thoughts? Anything I can actually get in writing from dealer or IFS to protect me (I doubt it).

Michaell

wrenrome said:

Sinc e I am in a state that allows MSDs, and since Infiniti allows MSDs, there can be substantial savings on a 2025 lease (~$150-160/mo, which more than makes up for the time value of money (allowing Infiniti to hold the money over the lease term)). The question I have is that I never put money down for a lease, and while MSDs are technically different, I've seen some "horror" stories about what could happen in a manufacturer bankruptcy, how the MSDs could be applied in a total loss situation (even though you get a gap waiver through IFS), and whether that incentivizes nickel and diming on the return side for lease turn in for alleged damage. I would do MSDs in a hearbeat if I knew it was only subject to attack for damage at lease turn int, but the other two (especially given Nissan/Infiniti's precarious financial state) give me pause.

Any thoughts? Anything I can actually get in writing from dealer or IFS to protect me (I doubt it).

MSDs are absolutely a win for both the customer and the bank - the bank gets your money for the lease term, and, as you've noted, the return is pretty good, when you annualize it.

As we understand it, the MSD monies are refunded to you in case the lease terminates early due to accident or theft.

Can't speak to the return process - my BIL had an Infiniti lease, and he experienced no issues upon turn in.

kyfdx

I turned in an Infiniti with 9 MSDs. Had a check for the MSDs within a week.