Acura does MSDs? Crap I wish I knew this!
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Best lease deal so far?
- Thread starter marcus321
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Acura does MSDs? Crap I wish I knew this!
- Joined
- 9 November 2017
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What is MSD?
MSD are Multiple Security Deposits
Some manufacturers like Mercedes and Lexus allow you to put these down to lower your money factor (interest rate on the lease).
Usually it is your premsd payment rounded up that drops it each point.
Example
1623 payment at .0018. If you do 1 msd it is $1650 but your interest rate is now .0017 effectively lowering your payments. If you do 2 mad it is $3300 (2 payments of 1650) but you are now at .0016 mf. Etc...
The second part of the msd is you get this money back at the end of the lease. So it is like renting a house. At the end of the rental they give you back your security deposit.
By putting the money down that you get back you save money on the interest you are paying effectively lowering your overall lease cost.
Hope that helps but isn’t too confusing.
Last edited:
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I have purchased a couple of times from an out of state dealership.
Catena in NJ has it down to a science.
When I bought my NSX in WI, they were not able to put a temp plate on the car so I had to go the DMV in IL to get my vanity plates done.
I inquired about a car today. $183.7k sticker. With $12,500 down, It was $1502 for 36 months. Seemed kinda high but the written offer didn't specify if the 12.5 was everything wrapped up including fees and tax or whatnot. Interestingly pretty damn good amount of money off the sticker to buy it. Like 40k off. I'm interested but the wife unit will have to bless it.
Would love to score a good lease deal with little down and a fair buyout price at the end to keep my options open.
Would love to score a good lease deal with little down and a fair buyout price at the end to keep my options open.
Just make sure your mf is .0018. Dealers tend to mark that up to get extra money off of you. The rest is pretty set in the equation besides the negotiated price to buy it.
Tell them to re-run the numbers with zero cap cost reduction. Never put money down on a lease. The number is high.
Yes this dealer GM seems reluctant to do out of state lease perhaps for the reasons mentioned by Rondtable....
They are using Acura Financial so it should be same anywhere. We bought a F80 m3 from a dealer in NY and was leased through CA with no issues.
He did not mention the deposit was a MSD, I will call them again tomorrow.
Car is a $177k car and he offered it at $134,750 so that's doable. May just buy the car instead of leasing if it's so much trouble. Need to discuss with them tomorrow.
In the lease scenario, they want $3500 down, security deposit of $1650
Money factor (MF) X 24 = Annual percentage rate (APR)
For example .0018 money factor = .0432 or 4.32% APR
On top of that the initiation & disposal fees , any wear & tear costs at turn in if you don't buy the lease out.
Mini wake up call.....some manufacturers at lease end/turn in, require tires be at a certain wear depth + must have OEM tires - cheaper brands don't cut it
and you will pay.
For example .0018 money factor = .0432 or 4.32% APR
On top of that the initiation & disposal fees , any wear & tear costs at turn in if you don't buy the lease out.
Mini wake up call.....some manufacturers at lease end/turn in, require tires be at a certain wear depth + must have OEM tires - cheaper brands don't cut it
and you will pay.
thanks, all true and great info ~ we leased our truck and was even informed tires must be matching OEM tires at time of return!
Yes I found this out after too. I thought that they didn’t, but wanted to make sure. I’m glad because if they did and I didn’t I would of been mad.
What is "MSD"?
This is what the sales guy told me, sounds like we are getting taken to the cleaners
The $1650 security deposit is a figure that Acura has on all NSX leases. You do not get this back at the end of the lease. The MF is 0.00217. The $4420.00 tax is based
On the monthly payment. The monthly payment will be $1365.00
Acura does NOT do MSD (Multiple security deposits) - some companies such as BMW uses it to lower your money factor. So you pay these MSD's to decrease your monthly payment and get this security deposit back at the end of the lease. I was under the impression the $1650 they wanted to charge me was a MSD but as you can see in our post below, that is NOT the case, this is just some bogus fee.
Thanks...:smile:
This is what the sales guy told me, sounds like we are getting taken to the cleaners
The $1650 security deposit is a figure that Acura has on all NSX leases. You do not get this back at the end of the lease. The MF is 0.00217. The $4420.00 tax is based
On the monthly payment. The monthly payment will be $1365.00
The deposit is bs. And Acura does not do msd. They need to have you at .0018 to earn your business. The tax is whatever the tax is based on your local tax.
Yes this is exactly what we told them, this kind of dealership trickery is what sours the brand name. People get excited to buy a car and then they shoot you down with all this crap, makes you frown a bit.
Can NSX owners in IL chime in on a few things? They are telling us the full tax of $4400 over the lease needs to be collected up front even though we are in CA and doing the lease here? Also they said the $1650 fee is always paid, just that in some of your cases, they are hiding it in your contract?
Would someone who has leased a car be willing to share your contract (white-out your personal info of course and the VIN, just want to see the lease structure).
We are communicating with our contact via text message and this is what he said below:
Yes, the taxes must be paid up front. MF is standard rate set by Acura, not something that can be changed unless you buy down the rate. Your buddies paid the 1650 somewhere somehow in the lease. It may not have been broken out for them as we have done for you.
thanks!
Here you go -
"Virtually all U.S. states require a sales tax to be paid on a leased vehicle. Typically, this sales tax is charged on the down-payment amount, but there are some states (Georgia, Illinois, Minnesota, New York, Ohio and Texas) that require lessors to pay a sales tax on the entire price of the vehicle at the beginning of a lease. This can be a huge cost, so be prepared for it. If you live in one of those six states, this cost might be enough to make leasing look like a less attractive option than purchasing."
Not sure if it applies to out of state buyers and they are just trying to rip you off.
And i call BS on that deposit. Never heard of that.
Sorry for confusion, we are well aware of sales tax being paid ~ that is not the issue.
Typically sales tax of $4400 is divided into each monthly payment, it's not paid up front as as lump sum.
IL and CA are the same in that sales tax is only calculated on the portion of the vehicle being leased. Not the entire amount.
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