Leasing · The Model Black education

Multiple security deposits, explained.

The Model Black lets you add multiple security deposits to a lease it prices, where that car's captive lender offers them, because they are the one lease lever that lowers the rate without spending the money.

Price a lease with deposits on live inventory

By The Model Black · Published September 18, 2026 · Updated October 6, 2026 · Part of Leasing basics: how a car lease works

An MSD is a refundable deposit, roughly one month's payment, that the lender holds for the term. Each deposit buys a small reduction in the money factor; the size of the reduction and the cap are set by the captive lender (with Mercedes-Benz Financial Services, for example, each one lowers it by 0.00007, up to 10 deposits, as reported by lessees on Leasehackr and MBWorld in 2025 and 2026).

How the numbers work.

Deposit size. Each MSD equals the monthly payment rounded up to the nearest $50. On an $850 payment, one deposit is $850 and ten are $8,500.
Rate cut. 0.00007 per deposit. Ten deposits take 0.0007 off the money factor, which is about 1.7 points off the lease rate expressed as an annual percentage (0.0007 multiplied by 2,400).
Payment effect. On a $60,000 car over 36 months, ten deposits typically lower the payment by roughly $40 to $60 a month, so about $1,500 to $2,000 over the term, for money you get back.
Refund. The deposits come back at lease end, less any amounts you owe (excess miles, wear, unpaid fees). They are not applied to your payments during the term.

MSDs against the alternatives.

	Money down	One-pay	Multiple security deposits
What it does	Reduces the amount financed	Prepays every payment, lender cuts the rate	Lender cuts the rate, money held as a deposit
Refundable	No	No	Yes, at lease end
Risk in a total loss	Down payment is gone	Depends on contract	Deposits are returned
Best for	Lowering a payment when cash will not be missed	The cash buyer who keeps cars 2 to 3 years	Anyone with idle cash who wants the rate cut and the money back

On The Model Black.

Every vehicle page whose captive lender offers MSDs has an MSD control beside the term and mileage selectors (0 up to that lender's cap, which is 10 with Mercedes-Benz Financial Services). Change it and the monthly payment, the drive-off total, and the deposit amount update together. The dealer's selling price does not change; only the lender's rate does.

Availability varies by lender and state: some captives offer MSDs (Mercedes-Benz Financial Services does in Arizona and Nevada as of September 2026), some have discontinued them, and the vehicle page shows the option only where that car's lender allows it. The dealer confirms at contract.

The deposit is money you still own. If you have the cash and no better use for it over the term, MSDs are usually worth taking.

Quick answers.

How many multiple security deposits can I put on a lease?

It depends on the captive lender: Mercedes-Benz Financial Services allows up to 10, others cap it lower or do not offer MSDs at all, and the vehicle page shows the cap for that car's lender. The Model Black prices 0, 3, 5, 7, or 10.

Do MSDs count as money down?

No. Money down is spent; deposits are held and returned. That is why The Model Black's lease examples show money down separately from MSDs.

Can I do MSDs and a one-pay together?

Usually not; lenders treat them as alternative rate reductions. Compare both on the vehicle page and take the one that fits.

What happens to the deposits if I buy the car at lease end?

They are refunded or applied toward the purchase, per the contract. Ask the dealership to confirm its process before you sign.

Payment figures on this page are illustrations of a closed-end lease, not an offer to lease. The lessor sets the terms, and excess mileage and excess wear and use charges may apply at lease end. Plus each dealership's own documentary fee (not a government fee), taxes, and government fees.

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