Car Buying Advice - Toyota Highlander Lease Using MSDs?

milo_777milo_777 Member Posts: 2
edited May 2017 in Toyota
Newbie here.....Possible first lease for me using MSD's

Requesting current RV/MF for March 2017

Year: 2017
Make, Model, and Trim: Toyota Highlander LE AWD (6cyl) (Model 6948)
Months/Annual Mileage: 36/12K
Zip Code: Live NY (10567) however purchasing in New Jersey (07410)

Many Thanks!

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Answers

  • milo_777milo_777 Member Posts: 2
    I really appreciate the quick response to my question, Thanks very much!
  • gina2bitgina2bit Member Posts: 57
    excuse my ignorance but what is MSD?
    My guess is Manuf. Sales Discount?
  • kyfdxkyfdx Moderator Posts: 191,385
    gina2bit said:

    excuse my ignorance but what is MSD?
    My guess is Manuf. Sales Discount?

    Multiple Security Deposits.

    In exchange for making extra refundable security deposits, the bank lowers the money factor.

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  • gina2bitgina2bit Member Posts: 57
    Ok now since this is the first time I've heard of MSD's I called a dealer about a lease on a Dodge Caravan and he found a bank with 9.
    what does that mean to me?
    I asked him what 9 was he didn't really answer that is just what Allied bank had, he puts in his software and come up with a payment.
    Is there any conversion I can do with the number 9?
  • MichaellMichaell ColoradoModerator Posts: 186,656
    gina2bit said:

    Ok now since this is the first time I've heard of MSD's I called a dealer about a lease on a Dodge Caravan and he found a bank with 9.
    what does that mean to me?
    I asked him what 9 was he didn't really answer that is just what Allied bank had, he puts in his software and come up with a payment.
    Is there any conversion I can do with the number 9?

    sorry, that is not enough information to be able to help you.

    It might be the number of MSDs allowed by Allied Bank

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  • kpwin17kpwin17 Member Posts: 40
    How does Toyota calculate the amount of the security deposit for the MSDs? The lease program is advertised as $0 security. Is it the payment rounded up to the nearest $50? For example, if my payment was $410, each MSD would be $450. Is that right?

    TIA!
  • kyfdxkyfdx Moderator Posts: 191,385
    kpwin17 said:

    How does Toyota calculate the amount of the security deposit for the MSDs? The lease program is advertised as $0 security. Is it the payment rounded up to the nearest $50? For example, if my payment was $410, each MSD would be $450. Is that right?

    TIA!

    It's the payment rounded up... either the next $25 or $50 increment (not sure which).

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  • bluedevil33bluedevil33 Member Posts: 5
    Has anyone successfully done this March Highlander XLE deal for $327 with either no $ down or MSDs instead of the cash?

    I've read over and over how you should never put money down on a lease.... am I wrong?
  • MichaellMichaell ColoradoModerator Posts: 186,656

    Has anyone successfully done this March Highlander XLE deal for $327 with either no $ down or MSDs instead of the cash?

    I've read over and over how you should never put money down on a lease.... am I wrong?

    That's our recommendation ...

    ... if you put a cap reduction on the lease (down payment), that money would be lost if the car is stolen or totaled

    ... if you pre-pay the taxes and fees, it's unlikely you'd get a refund if the same thing happened

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  • bluedevil33bluedevil33 Member Posts: 5
    Michaell said:


    That's our recommendation ...

    ... if you put a cap reduction on the lease (down payment), that money would be lost if the car is stolen or totaled

    ... if you pre-pay the taxes and fees, it's unlikely you'd get a refund if the same thing happened

    If that's the case... does that not mean that the payment goes up? Or have others used MSDs in its stead.

    I understand that of the 3k they want down, that includes the first month's payment... I assume that paying the first month's payment is acceptable?

  • MichaellMichaell ColoradoModerator Posts: 186,656

    Michaell said:


    That's our recommendation ...

    ... if you put a cap reduction on the lease (down payment), that money would be lost if the car is stolen or totaled

    ... if you pre-pay the taxes and fees, it's unlikely you'd get a refund if the same thing happened

    If that's the case... does that not mean that the payment goes up? Or have others used MSDs in its stead.

    I understand that of the 3k they want down, that includes the first month's payment... I assume that paying the first month's payment is acceptable?

    Yes, the payment goes up when you roll the fees and taxes into the cap cost. MSDs can be used to reduce the MF, and save money on the payment. And, you get the MSD monies back at the end of the lease.

    First payment and non-taxable government fees should be all you come up with at signing.

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  • kemnydavis74kemnydavis74 Vancouver WAMember Posts: 37
    @Michaell I had a dealer get back to me with a quote today saying the MSDs would be 4500 for a 00109 rate!? He said they always add 00005 to the rates so instead of 00133 it started at 00138 and it only dropped my rate 00029. He said the first one doesn't drop it the next 8 do? From everything i've read 4500 seems way to much to only drop it 00029. Its on a Highlander SE Msrp 43408
  • kyfdxkyfdx Moderator Posts: 191,385

    @Michaell I had a dealer get back to me with a quote today saying the MSDs would be 4500 for a 00109 rate!? He said they always add 00005 to the rates so instead of 00133 it started at 00138 and it only dropped my rate 00029. He said the first one doesn't drop it the next 8 do? From everything i've read 4500 seems way to much to only drop it 00029. Its on a Highlander SE Msrp 43408

    It's more likely that they added .00050, not .00005 to your rate.

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