Multiple Security deposits (MSD'S) on Lease

[tarponman85]

Hey guys, new to the forum as I am getting ready to lease a new Ex Sport. I did some searching but could not find any info regarding putting down Msd's on a lease. Does anyone know if ford offers this and if so what is the max amount of sec deposits one could put down and how many points is the Money factor reduced for each month of sec deposit.

 

[tarponman85]

Bump to the top..

Anyone???

 

[peterk9]

Hey guys, new to the forum as I am getting ready to lease a new Ex Sport. I did some searching but could not find any info regarding putting down Msd's on a lease. Does anyone know if ford offers this and if so what is the max amount of sec deposits one could put down and how many points is the Money factor reduced for each month of sec deposit.

Yes, they do in Canada, not sure about the U.S. I believe the amount of the deposit is based on your monthly payment rounded up to the nearest $50. The monthly payment on my 2011 Limited was $573 including tax. I was able to make a refundable security deposit of 10 X $600 which reduced the interest rate 1.5%. I believe 10 was the maximum number of deposits allowed. My salesman wasn't aware of this system and had to check with the finance manager. I used the same program at Toyota.

Peter

 

[tarponman85]

Yes, they do in Canada, not sure about the U.S. I believe the amount of the deposit is based on your monthly payment rounded up to the nearest $50. The monthly payment on my 2011 Limited was $573 including tax. I was able to make a refundable security deposit of 10 X $600 which reduced the interest rate 1.5%. I believe 10 was the maximum number of deposits allowed. My salesman wasn't aware of this system and had to check with the finance manager. I used the same program at Toyota.

Peter

I'm surprised I have not gotten more traction with my post? Id love to hear from someone in the U.S. as the max amount of deposits or money factor reduction may be a bit different than in Canada. Thank you however for responding. This system of leasing is very well known with other non American car brands such as BMW, Infiniti and Lexus.

 

[peterk9]

I'm surprised I have not gotten more traction with my post? Id love to hear from someone in the U.S. as the max amount of deposits or money factor reduction may be a bit different than in Canada. Thank you however for responding. This system of leasing is very well known with other non American car brands such as BMW, Infiniti and Lexus.

I'm not that surprised. I've a member here since Dec, 2010 and other than myself, you are the only other member that I recall bringing this subject up.
Perhaps you should try giving Ford Financial a call. Good luck.

Peter

 

[KeyserS]

https://credit.ford.com/lease-a-ford

MSD's listed as well as gap insurance included.

One dealer dropped ball on ordered ExSp after 2 months, car is held at factory.
Found in stock car at different dealer close enough, working lease with MSD's (Ford calls them ASD's) now.

Good luck, have done before.

 

[KeyserS]

Update- If you do multiple security deposits, you cannot add cash or pay sales tax. BMW, etc, don't have this goofy rule, and financing sales tax is dumb. I'll make more on paying taxes upfront and investing the rest.
Just an FYI

 

[peterk9]

Update- If you do multiple security deposits, you cannot add cash or pay sales tax. BMW, etc, don't have this goofy rule, and financing sales tax is dumb. I'll make more on paying taxes upfront and investing the rest.
Just an FYI

Not sure what you mean by " cannot add cash"?

Peter

 

[KeyserS]

Not sure what you mean by " cannot add cash"?

Peter

Ford credit refuses to let you put anything other than security deposits down. Even if you only put 2 security deposits down, you cannot put any cash into the deal to pay taxes, tags, nothing. Zero.

The point of deposit multiples is to drop money factor/interest rate for cheaper lease. Rate was 1.75. I won't finance taxes. Ever. So rate drop of extra deposits not worth the initial cap cost of financing car and taxes. 100-150/month diff, so $4k over lease. Pay taxes of 3k, and can make better than 1.75 on the money rather than leaving it sit as deposits.

Really odd they do it that way. I was first guy in 14 years to make them work numbers 3 ways. Stumped them. Ok. It's my money. Better to use other people's money.

Wife likes car and it'll tow race cars. Works for me.

 

[peterk9]

Ford credit refuses to let you put anything other than security deposits down. Even if you only put 2 security deposits down, you cannot put any cash into the deal to pay taxes, tags, nothing. Zero.

The point of deposit multiples is to drop money factor/interest rate for cheaper lease. Rate was 1.75. I won't finance taxes. Ever. So rate drop of extra deposits not worth the initial cap cost of financing car and taxes. 100-150/month diff, so $4k over lease. Pay taxes of 3k, and can make better than 1.75 on the money rather than leaving it sit as deposits.

Really odd they do it that way. I was first guy in 14 years to make them work numbers 3 ways. Stumped them. Ok. It's my money. Better to use other people's money.

Wife likes car and it'll tow race cars. Works for me.

In every case where I used the multiple security deposits I was also able to make a down payment.

Peter

 

[KeyserS]

Dealer confused. Called Ford. Albeit 1630 on holiday weekend. Ford said no. I hadn't ever had this happen and wife wanted truck. I used to lease more but I trade now every few months. Bucket listing. Thought this was stupid though. If I had energy to chase this I would. Meh.