Smart Money Move

Multiple Security Deposits (MSDs)

A little-known way to save hundreds on a lease—and get your money back at the end

The Secret Lease Hackers Know

The Simple Version

Here's a secret that experienced lease hackers know: some car brands let you put down extra security deposits to get a lower interest rate on your lease. The best part? You get ALL that money back at the end of the lease. It's like a savings account that pays you by lowering your monthly payment. This works with brands like BMW, Toyota, Lexus, and a few others. Instead of putting money 'down' (which you'd lose if the car gets totaled), you're essentially lending money to the leasing company in exchange for a discount on your payments.

How it works:When you lease, there's a hidden interest rate called the "money factor." The lower your money factor, the lower your monthly payment. Some manufacturers let you make multiple refundable security deposits (usually 7-10 deposits) to reduce this money factor.

The math: Each deposit is typically equal to one monthly payment (rounded up to the nearest $50). If your payment is $420, each deposit would be $450. Put down 7 deposits ($3,150 total), and you might save $30-50 per month on your payment.

Real example:

• Without MSDs: $450/month × 36 months = $16,200 total
• With MSDs ($3,150 put down): $410/month × 36 months = $14,760, plus you get $3,150 back at lease end
• Savings: $1,440 less in payments, money returned at end
• That's like earning a 15%+ return on your $3,150!

Why this beats a down payment: A down payment (cap cost reduction) is GONE if something happens to the car. MSDs are fully refundable—even if the car is totaled, you get your deposits back.

Brands that offer MSDs:

• BMW Financial Services
• Toyota Financial Services
• Lexus Financial Services
• INFINITI (some programs)

Note: Mercedes-Benz used to offer MSDs but discontinued their program. Always confirm current availability with your specific brand.

More Things They'll Say

"We don't really do that here"

What it means: Dealer may not be familiar with MSDs or may not want to bother

Say: "I know [BMW/Toyota/Lexus] Financial Services allows multiple security deposits. Can you check with your finance manager? I'm ready to sign today if we can structure it this way."

"It's not worth the hassle"

What it means: Dealer makes the same money either way and may not want extra paperwork

Say: "I'd really appreciate it. This is important to me, and it's one of the reasons I'm choosing to lease from your brand."

Quick Decision

SMART MOVE

If you're leasing a brand that offers MSDs, this is one of the smartest financial moves you can make. Your money works for you AND comes back at the end.

Your Return

Think of it like a high-yield savings account. You "lend" the leasing company $3,000+, save $1,000+ in payments, and get your full deposit back. That's a 15%+ annual return!

Why Not Down Payment?

Down payments are at risk—if the car is totaled, your money is gone. MSDs? Fully refundable no matter what happens to the vehicle.

Things to Know Before You Start

Check Your Brand First

Not all brands offer MSDs. Before you get excited, confirm that your chosen brand (like BMW, Toyota, or Lexus) currently has an MSD program. Programs can change, so always verify.

Have the Cash Ready

MSDs require having $2,500-$5,000+ available upfront. Only do this if you have the funds available without straining your budget. It's a smart move—but only if you can afford it.

You Get It All Back

Your deposits are returned at lease-end (typically within 30-60 days). If you turn the car in early or do a lease buyout, you still get your deposits back.

Do the Math

Ask the dealer to show you the payment with and without MSDs. Calculate your actual return: (monthly savings × months) ÷ total deposits = your return rate. Should be 10-20%+.

Pro Tip: Combine with Zero Down

The smartest lease structure is: zero cap cost reduction (down payment) + maximum MSDs. This way you get the lowest possible payment while keeping all your money protected. Traditional down payments are gone if something happens to the car; MSDs come back to you no matter what.

Sources & Further Reading

Notes: Sources are provided for general education. Rules can vary by state and change over time.