MSS™ Program Advantages Over Outright Purchases
Why use MSS’s™ Individualized Transportation Service (ITS)™ programs over an outright purchase?
- Eliminates large capital purchase outlay allowing Trust or Worker’s Compensation funds to be utilized to meet other needs or for investment purposes
- Eliminates potential SNT Trust liability via no title or ownership concerns
- Assures fair pricing of the underlying vehicle compared to the general local mobility dealer market
- Safety....all MSS™ packages are provided by nationally recognized mobility manufacturers which fully crash test the vehicles and assure quality via the Quality Assurance Program (QAP)
- One easy monthly payment includes the vehicle, 60 month bumper to bumper warranty on the vehicle and accessible equipment, full maintenance program and insurance coordination. Maintenance costs are “capped”.
- Protects against vehicle depreciation
- Regular replacement of the vehicle and updated accessible equipment
- Assures a virtually trouble free vehicle for the individual who experiences a disability and their family
- Hedge against inflation…MSS™ packages are purchased with today’s dollars. Future monthly payments do not increase over the life of the initial package purchased.
- Potential tax advantages….monthly payments may be fully deducted as “medical/accessible transportation” via IRS publication 907. Check with a qualified CPA to inquire about the potential advantages.
- Eliminates vehicle disposal issues upon death of trust beneficiary, trust termination or vehicle replacement.
- More cost effective than an outright purchase
MSS™ Financial Analysis
Sample Financial Analysis:
Retail for a safety crash tested quality assurance Tuscany Full Size Accessible Vehicle as provided in the MSS Inclusion™ package has an average retail cost of $54,832. Our MSS Inclusion™ package provides a better comparative value over an outright purchase of the vehicle.
Traditional Outright Purchase MSS Inclusion Package™
Five year monthly cost: $914 |
Five year monthly cost: $1300 |
Initial Cost: $54,823+ |
Initial One Time Down Payment: $4425 |
3 Year Warranty |
5 Year Warranty |
Maintenance Plan Not Included |
Full Maintenance Plan Included |
Road Side Assistance Not Included |
Road Side Assistance Included |
No Liability Protection for Trust |
Liability Protection –No Title held by Trust |
Reduction of potential investment return: $3289/yr or $274/mo |
Reduction of potential investment return: $206/yr or $17/mo |
1) The $54,823+ cash outlay reduces the trusts investment return possibilities as the funds are no longer available for investment in assets which may appreciate. If you assume a conservative 6% annual rate of return the trust investment income is reduced by approximately $3289 per year or $274 per month.
2) The initial one time cash outlay of $3425 reduces the trusts investment return possibilities as well but at a significantly lower amount. If you assume a conservative 6% annual rate of return the trust investment income is reduced by approximately $206 per year or $17 per month.
*** Insurance, tax, title and registration fees not included. These costs will vary State to State and case by case.
|
