When it comes to leasing a vehicle, most shoppers focus on selling price, residual value, and monthly payment — but there’s one powerful lever most people overlook: Multiple Security Deposits, or MSDs.

MSDs can quietly lower your lease rate, saving you hundreds of dollars over the life of your lease — without spending a single non-refundable dollar.

🧩 What Are Multiple Security Deposits (MSDs)?

A security deposit is a refundable sum of money paid to the leasing company (lessor) at the start of your lease. It’s held as collateral in case you miss payments or return the vehicle with excess wear.

Some captive lenders — the finance arms of automakers like BMW Financial Services, Lexus Financial Services, or Toyota Financial Services — allow lessees to make multiple security deposits.

In exchange, you get a lower money factor, which is the leasing equivalent of an interest rate. The more deposits you make (up to a limit), the lower your rate — and the lower your monthly payment.

💰 How MSDs Work

The total amount of your multiple security deposits varies by lender, but it’s most commonly equal to one monthly payment per deposit, rounded to the next $50 increment.

For each additional deposit, the money factor is reduced by a set amount — for example, .00004 per deposit — up to a maximum number of deposits (usually between 5 and 10).

Each lender also applies a minimum floor, meaning your money factor can’t drop below a certain level (e.g., .00001).

📊 Example: Nissan Motor Acceptance Company (NMAC) MSD Program — as of January 2023

Total MSDs: 5 × $350 = $1,750 refundable
Total Savings: ≈ $360 over the course of the lease

✅ NMAC requires at least 2 security deposits, each rounded to the next $50 increment of the base payment. The minimum MF floor is .00001.

🏢 MSD Programs by Captive Lender (Common Brands)

⚠️ Important Notes

• MSDs are refundable at lease end if the vehicle is returned in good condition and all payments are current.

• MSDs are not the same as a down payment. A down payment reduces the capitalized cost (selling price), while MSDs reduce the money factor (interest).

• Some states, such as New York, limit total refundable deposits (often capped around $749).

• Always verify your lender’s specific MSD program, as rules and reductions can change.

🧮 Why It Matters

Using MSDs can deliver one of the best risk-free returns available in leasing. Think of it like a guaranteed return on cash — you lend the bank your money, and they reward you by lowering your interest rate.

For high-MSRP vehicles like the BMW X5, Lexus RX, or Volvo XC90, this can equal hundreds in savings without losing liquidity — since your deposits come back at lease end.

🔧 Build and Compare Lease Deals Instantly

Before you sign any lease, make sure the deal makes sense.
Use our free lease and finance calculator at AutoCompanion.com to:

• Compare lease, finance, and cash structures side by side

• Test how MSDs affect your payment

• View current OEM residuals, money factors, and rebates

• Share your deal for expert review

✅ In Summary

• Multiple Security Deposits (MSDs) are refundable and lower your money factor, saving you money.

• Brands like BMW, Lexus, Toyota, Volvo, and Nissan all support MSD programs.

• Savings vary, but most drivers see $300–$3,000 in total benefit depending on vehicle and term.

• Always confirm lender policies and use tools like the AutoCompanion Calculator to validate your deal.