{ "media_type": "text", "post_content": "Is it a good idea to put MSD down or any down payment when leasing in this current environment?", "post_id": "5f07944aa47322002b9cb481", "reply_count": 7, "vote_count": 0, "bowl_id": "5f073f3bb547c00020ee221c", "bowl_name": "Everything Cars " }

Is it a good idea to put MSD down or any down payment when leasing in this current environment?

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What is the MSD for? Honestly never heard of it for a lease till now. I’ve heard of a down payment on a lease which is just not a good idea.

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Depending on the manufacturer, you can usually put down these multiple security deposits to lower your money factor. Depending on the rate and your risk profile / opportunity cost, it can be worth it.

Usually yes, interest rate equivalent is about 10%

MSD is usually a good idea as it eliminates the interest cost. It would depend on the money factor to some degree though. You would want to calculate the opportunity cost for the MSD. Just make sure the leasing company will refund them even in case of loss/theft (some rumors that this can be an issue). Down payments are a very bad idea: It puts you upside down on the lease and in case of a total loss, you will lose the difference as most insurance will only pay you the value of the car.

Down payment on lease - NO! MSD during this time - Many manufacturers are offering a low Money factor that makes MSD irrelevant.

I saved about 10% on my monthly putting MSD which was totally worth it

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