sarhento

Those of us who have availed of this option, do you feel it is working for you?

MX5NES350

Can you explain this one? Multiple as in you put a deposit on two or more different cars? I am infamiliar with there practice but maybe I have done it without knowing and can help

sarhento

Security Deposit for RX350 is $1000. As you increase it in multiple of 1,000 your lease rate decreases by .15%. It is one way of decreasing your lease rate and in turn lower your monthly payment.

MX5NES350

Ah... Then I cannot help since I did a purchase and do not lease. Sorry!

sarhento

I am just curious whether anyone has exercised this option at all. this may not be available in the US, I'm not sure. Personally, I opted for this one instead of putting a downpayment.

UCSB

I have never leased a car, but a good friend of mine leased his RX 450h. He prepaid his lease; as in he made a single payment when he took delivery and he will return the car after 36 months. He gave me a quick summary of the numbers and they were really attractive. The lease rate went to zero and there were other benefits. His single lease payment was about equal to my down payment. Next time I purchase, I think that I am going to compare the single lease payment to my purchase numbers to see how it would compare.

But, to answer your question ... you need to just create a spreadsheet and see how various capital reductions affect your total lease investment. Then pick the strategy that most closely matches your personal situation.

sarhento

Good advice, which is something I did. I compared the benefit between making multiple deposits and making the same amount of downpayment. The commulative effect is in favour of MSD (multiple security deposits).

Marqevans

I have done it seven times. The return in the form of a lower payment is far greater than any fixed return investment you can get today. Did the first one in 1998 and just did the seventh RX in April 2012. You almost forget the money is there. Just make sure it shows up as a refundable deposit on your lease agreement and not as a down payment.

sarhento

You have been doing a smart thing. I didn't know MSD has been around. I thought this is something new. I don't remember other dealerships of other car makes offering this option.

svofan1

...just curious...what happens if the vehicle is totalled in an accident or stolen?...don't you loose that money?...in such a situation with "gap" insurance the lesee does not owe a penny more, but no one will reimbursed he money that you put down in the lease, am I missing something here?....this was explained to me by a dealer once, he recommended to put down the least amount of money...and he was right!!

sarhento

the scenario you described actually happened to my other car, A BMW with security deposit. My son got into an accident which totally wrote-off the vehicle. My insurance company settled with BMW Financial and I got my security deposit back.

EMSLEXUSRX

I thought I read somewhere that when you do MSD's, you get it all back at the end of the lease, or something to that effect. Or am I remembering this incorrectly??

sarhento

That's my understanding also -you get all your MSDs back.

Here's what Lexus says about MSD:

Multiply Security Deposits

Lexus provides you with a special feature to leverage your investment in a Leased Vehicle. You may provide multiple security deposits beyond the required minimum amount and these additional deposits will help to further reduce your Lease Rate. All of your security deposit will be returned to you upon expiration of your lease.

markrivers

the multiple deposit sounds tempting..
quick question, does it tie you to a certain dealer? OR can you use "IT" with other dealers from the same state? out of state?

Marqevans

Your deposit is held by Toyota/Lexus financial so it does not tie you to one dealer.