MSDs confusion
11-18-2019, 04:28 PM
#1
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2010 CLS550
MSDs confusion
Hi,
I leased a 2017 E-class and put down 10 security deposits to reduce the Money Factor. My lease runs out in April 2020 but I got a letter from MB indicating they'd waive the lease termination fees, pick up the last several payments, etc. My local dealership also reached out.
I indicated to the sales manager of my local dealership that I'd step into a 2020 E-class for similar money as my 2017. I didn't want to put any money down, I would use the 10 MSDs that are to be refunded from the 2017 lease and use them as MSDs on the 2020 lease. They came back to me for $35/month more than what I had offered. Not a big deal.
I was about ready to do the deal and asked for confirmation of a few things - including that the 10 MSDs would be refunded when the 2020 leased vehicle expired. The sales manager indicated that the MSDs from the 2017 lease would be refunded to me and then be used as a cap cost reduction on the new 2020 vehicle. He said that there was a change in the MSD program and they aren't doing them any more. The money would not be refunded to me at the conclusion of the 2020 lease.
I feel like I've been mis-led to the tune of 10 MSDs ($495/ea = $4950 total). Also, can anyone confirm the changes to the MB MSD program?
Regards,
Ken
I leased a 2017 E-class and put down 10 security deposits to reduce the Money Factor. My lease runs out in April 2020 but I got a letter from MB indicating they'd waive the lease termination fees, pick up the last several payments, etc. My local dealership also reached out.
I indicated to the sales manager of my local dealership that I'd step into a 2020 E-class for similar money as my 2017. I didn't want to put any money down, I would use the 10 MSDs that are to be refunded from the 2017 lease and use them as MSDs on the 2020 lease. They came back to me for $35/month more than what I had offered. Not a big deal.
I was about ready to do the deal and asked for confirmation of a few things - including that the 10 MSDs would be refunded when the 2020 leased vehicle expired. The sales manager indicated that the MSDs from the 2017 lease would be refunded to me and then be used as a cap cost reduction on the new 2020 vehicle. He said that there was a change in the MSD program and they aren't doing them any more. The money would not be refunded to me at the conclusion of the 2020 lease.
I feel like I've been mis-led to the tune of 10 MSDs ($495/ea = $4950 total). Also, can anyone confirm the changes to the MB MSD program?
Regards,
Ken
01-24-2020, 07:05 AM
#2
Senior Member
Your dealer is not correct. I have a 2017 E Class lease expiring with 10 MSDs. Ordered a new GLE with a lease quote based on MSDs. MB Financial will refund my MSDs on the 2017. They will not allow for the MSDs to be transferred. I will need to pay the 2020 MSDs in a separate transaction so they still exist on new vehicles. FYI , the 2017 E Class had very generous residual and money factors. The 2020 E Class residual is about 4-5 percent worse and raises the price by more than $125 a month. No way do you want to do a down payment.
