AMGshaks

Hi,
I remember a couple of years ago I was offered to put down multiple security deposit (MSD) to lower my monthly lease on G wagon! Does MB still offers this option for S class. A friend of mine decided to switch from E class to S560 sooner than the end of the lease contract and enroll some negative equity and I though putting down MSD’s may help him to cover a part of this loss. He can afford up to $20,000 for MSD. Any previous experience to share ?
Thank you

Katie22

sorry i buy my cars...........

konigstiger

AMGshaks

I guess you are just trying to be funny Ha ?

RockSalt

I don't think konig is trying to be funny. If you haven't been by the dealership and gotten to that phase of the talks or just asked a finance person, asking MBFS is probably a good place to start.

mikey94025

I've never heard of MSDs before so thanks for bring it up. They seem like a good way to get a better money factor (interest rate), lower the finance charges for the lease, and reduce the monthly payments: https://cartelligent.com/blog/unders...eposit-leases/ . Unlike cap cost reduction (never a good thing IMO) you're not prepaying up-front, with zero finance benefit, just to get lower monthly payments and fool yourself into thinking you're paying less.

However, it looks like MSDs do not affect what you actually owe on the car and the residual. Therefore they don't affect the negative equity often incurred when trying to get out of a lease early (because you owe more on the car than what you've paid so far).

MBS63AMG

Uhh, no, Konigster is not being funny. He is our most respected source for solid answers on just about anything Mercedes Benz. Just like Andy kept telling Aunt Bee ("call the man Aunt Bee! Just call the man!")..... you're best answer can be given by calling MBFS.

AMGshaks

I’m not trying to be disrespectful to anybody. I have leased 10 Mercedes Benz’s so far. Obviously there is a financial institution named Mercedes Benz Financial Services! I asked this question because I wanted to know if anyone has any personal experience dealing with this situation. There are always some hidden fees and details into these kind of deals that you may be able to share based on personal experience. Referring me to Mercedes Benz Financial Service as a profitable source, is insulting my intelligence!

sgawiser

We did MSD's on both of our new cars and it made a great deal of sense. Unlike a down payment, there are refundable at the termination of the lease no matter when that happens. The reduction in the money factor provided more than a 10% yield on the MSD.
Financial services allowed up to 10 MSD's on each lease. The last lease was 3 months ago.

MagnoWhitew222

msd’s are a way for you to buy down the money factor.
One msd is your payment rounded up to the the nearest $50
example; lease payment $1037 = $1050 msd
Every msd = .00007 off of the money factor
in this scenario, a total of $10500 security deposit would lower the money factor .00070

that $10500 is collected by the dealer, but held against the account as a security note against late payments or potential wear and tear fees.

Generally, if you have the extra money, it would be a wise decision to use this when leasing a Mercedes.

sgawiser

One key is that the MSD's are an obligation of Mercedes Financial not the dealer so you are at least better protected in these crazy times.