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Old 11-18-2012, 11:43 AM
spyerx spyerx is offline
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Location: SoCal
Join Date: Nov 2012
Posts: 10
Mein Auto: 535i
No, cap cost reduction is like a down payment for a loan. You don't want to put out of pocket cash on a lease. If you total the car you will lose this $ most likely. Security deposits are just that, BMWFS holds the $ until lease return. You get it back, minus any excess wear and tear fees. The advantage of doing security deposits (BMWFS doesn't require them) is the lower money factor. MF on a lease is like interest rate. Multiply MF by 2400 to give you % interest rate. Example, .00125 x 2400 = 3% which is current 5 series MF for top tier credit. You can get to 0.00076 with 7 security deposits. A security deposit is = to one month payment. .00076 = 1.8% MF. CA is a very competitive market, so shop around. You can get a good deal. This forum on edmunds will help you out if you've never leased before. (just beware their forum layout sucks). Also checkout this forum on this site:
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