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BMWFS Improves the MSD Program!

184K views 448 replies 195 participants last post by  ramyar 
#1 ·
In a bulletin released today, BMWFS made some changes to the MSD (multiple security deposit) program.

The current program is up to 5 over the required amount, and a 0.00005 reduction in the money factor for each one.

The new program is up to 7 over the required amount, and a reduction of 0.0007 per.
 
#103 ·
OriBMW said:
Not true. I negotiated the MSD program at Westchester BMW. 7 MSD's.
OK. I called BMWFS after reading your post and I am getting the run around. They are adament in saying teh program is negotiated at the dealer and the dealer has the responsibility. They say NY is excluded but they can produce a bulletin that has that in writing.

I even went as far as asking to speak to the dept that receives the security deposits, thinking receive one, receive all, and I am getting no where.

Can someone post a bulletin/bulletin number, a name with contact info at BMWFS or anything that wouold prove that this program is administered by BMWFS and not by the dealers nor is there any exclusion for the state of NY.

Oh, here is a new twist. I am told by BMWFS while typing this that it is available in NY, the total amount of the MSD cannot exceed $749...huh? :dunno: That does NOT make any sense.

:mad:
 
#104 ·
EvilM3 said:
OK. I called BMWFS after reading your post and I am getting the run around. They are adament in saying teh program is negotiated at the dealer and the dealer has the responsibility. They say NY is excluded but they can produce a bulletin that has that in writing.

I even went as far as asking to speak to the dept that receives the security deposits, thinking receive one, receive all, and I am getting no where.

Can someone post a bulletin/bulletin number, a name with contact info at BMWFS or anything that wouold prove that this program is administered by BMWFS and not by the dealers nor is there any exclusion for the state of NY.

Oh, here is a new twist. I am told by BMWFS while typing this that it is available in NY, the total amount of the MSD cannot exceed $749...huh? :dunno: That does NOT make any sense.

:mad:
Here's a newer twist as of this morning!

I started getting concerned as well. So i called another dealer in NY state (pace bmw) and they told me that MSD's are illegal in NY State!

Now I'm getting the run around~!
 
#105 ·
EvilM3 said:
OK. I called BMWFS after reading your post and I am getting the run around. They are adament in saying teh program is negotiated at the dealer and the dealer has the responsibility. They say NY is excluded but they can produce a bulletin that has that in writing.

I even went as far as asking to speak to the dept that receives the security deposits, thinking receive one, receive all, and I am getting no where.

Can someone post a bulletin/bulletin number, a name with contact info at BMWFS or anything that wouold prove that this program is administered by BMWFS and not by the dealers nor is there any exclusion for the state of NY.

Oh, here is a new twist. I am told by BMWFS while typing this that it is available in NY, the total amount of the MSD cannot exceed $749...huh? :dunno: That does NOT make any sense.

:mad:
I just called BMWFS and was told the same $749 cap!
 
#106 ·
OriBMW said:
I just called BMWFS and was told the same $749 cap!
THat is probably because I just called before you. However, the initial poster of the thread did respond to me in a PM citing that bulletin number stating that it does in fact contain the $749 cap. Guess we are SOL in NY. :cry:
 
#108 ·
EvilM3 said:
THat is probably because I just called before you. However, the initial poster of the thread did respond to me in a PM citing that bulletin number stating that it does in fact contain the $749 cap. Guess we are SOL in NY. :cry:
I am taking back my deposit and just secured the same price at Greenwich BMW with 7 MSD's lowering the MF to .00111 !!!
 
#110 ·
OriBMW said:
I am taking back my deposit and just secured the same price at Greenwich BMW with 7 MSD's lowering the MF to .00111 !!!
Unfortunately, my order is scheduled for production and I was able to get it at invoice so I dont want to screw the salesperson. The MSD is a great deal. I calculated of securing with around $3500 would subtract around $30-40 a month. Not bad over a 24 month lease.
 
#112 · (Edited)
OriBMW said:
at invoice! wow! what car? which dealer?
It is a Z4 3.0 SI with Prem, Sport, Nav, Heated seats and I got it from Hassel on Long Island. However, I did contacted 3 other local dealers with prices before I walked in there. Having purchased a 2002 M3 at MSRP from them probably helped. I had all the info from this thread and knew about the incentive so there was no mrkup on the MF as far as I can see. I will probably always get my BMW's from the same person no matter where she goes because helps to build a relationship for situations like this. It just sucks that most of the service depts are horrible in the area.
 
#113 ·
Z4 at invoice is not a good deal because there is trunk money to be had on that car. You should be getting it below invoice!
 
#117 ·
Agreed to a lease on a 330 e90 a few days ago and the 2 dealers I ended up talking to at the end both weren't eager for me to do the MSD's.

#1 Said it doesn't work out financially for you. Only put the first 1 down to avoid the .00015 but after that you should invest the rest as it only gives you 1% return! It was more entertainment for me as I have worked the numbers and seen others do the same. The numbers work out to at least 10% return for it is tax free BTW.

I ended up going with the 2nd dealer who said you can do what you want no problem but we don't have many people that do that.

Well think of this how many bmw owners even know about ED or MSD's? I say less than 20% for ED and less than 10% MSD's.

That should be a poll.
 
#118 ·
Agreed to a lease on a 330 e90 a few days ago and the 2 dealers I ended up talking to at the end both weren't eager for me to do the MSD's.

#1 Said it doesn't work out financially for you. Only put the first 1 down to avoid the .00015 but after that you should invest the rest as it only gives you 1% return! It was more entertainment for me as I have worked the numbers and seen others do the same. The numbers work out to at least 10% return for it is tax free BTW.

I ended up going with the 2nd dealer who said you can do what you want no problem but we don't have many people that do that.

Well think of this how many bmw owners even know about ED or MSD's? I say less than 20% for ED and less than 10% MSD's.

That should be a poll.
Most dealer salespeople...none on this site...are too stupid to even know what MSD's are and how they really work...a smart dealer salesperson could probably help close more deals if they knew what it was and pitched it to their customers as a differentiator from the competition.
 
#119 ·
Last week, I agreed the price with a dealer on a 2006 Z4 3.0si with a lease money factor of 0.0007. However, they wouldn't let me do the MSD. At first, they tried to give me some BS saying that BMW does not allow MSD if the money factor is already below 0.001. In the end, the dealer just plain out refused to do it.
I really don't understand why they wouldn't let me do MSD. Does MSD eat into their profit? Do they get a certain percentage of the rent charge as commission?
 
#120 ·
I do know that bmwfs has a minimum MF that you can't go below. It is like .00025 or something like that.

I'm curious how doing the msd would affect the dealership at all? anyone?
 
#121 ·
In a bulletin released today, BMWFS made some changes to the MSD (multiple security deposit) program.

The current program is up to 5 over the required amount, and a 0.00005 reduction in the money factor for each one.

The new program is up to 7 over the required amount, and a reduction of 0.0007 per.
just finalized my lease yesterday on 335 coupe, did the 7 msds bringing the mf to .00151 from .00200. just wanted to thank Sarafil for bringing this info to light! thanks also to Greginariz (if you're out there) for all his advice on leasing which i followed to a tee (particularly about not putting money down and rolling acquisition fee into cap).
 
#124 · (Edited)
It's been 2 months since I got my lease and the local BMW dealer also told me that doing MSD's was not financially beneficial. He was very firm about it.

Not sure why they do that...if the customer has done the analysis then the dealer just looks ignorant about their product (at best) or untruthful (at the worst).

I did the analysis (as many on this forum have) and even had my CPA-sister look at it; the MSD program makes a lot of financial sense (assuming you have the cash to throw at it).

This actually was the "last straw" for me with that dealer and I went to a different dealer to lease my car.
 
#126 ·
It's been 2 months since I got my lease and the local BMW dealer also told me that doing MSD's was not financially beneficial. He was very firm about it.

Not sure why they do that...if the customer has done the analysis then the dealer just looks ignorant about their product (at best) or untruthful (at the worst).

I did the analysis (as many on this forum have) and even had my CPA-sister look at it; the MSD program makes a lot of financial sense (assuming you have the cash to throw at it).

This actually was the "last straw" for me with that dealer and I went to a different dealer to lease my car.
I totally agree. They are either incompetent or not trustworthy, and you don't want to deal with either. Good move.:thumbup:
 
#125 ·
I LOOOOVE MSD's!! It's nice knowing I have money coming back to me at the end of the lease, and I can throw that right into more MSD's on the next car and it will be like I never missed the money
 
#127 ·
i was able to get 8 MSDs yesterday on my lease. we were all set on getting 7 MSDs but my CA came up to me and said i could do 1 more because i'm a first time leaser (at least that's what i think he said). either way, i was able to do 1 more and it brought my MF down from 0.00166 to 0.00151. i'm not sure why it's not 0.00159 but i didn't sit there and argue. i got buy rate but had to add 0.00015 b/c i'm a first time leaser then subtracted all the MSDs.

RVD.
 
#130 ·
ah, it all makes sense now. i didn't realize i had the option to put down the initial SD to avoid the 0.00015.

RVD.
 
#131 ·
Returning BMWFS cutomer question

I had leased a car a few years ago through BMWFS. Does the initial security deposit waiver for returning customers apply to me on a new lease, or is the deposit required to reduce the MF by .00015 since I'm not coming immediately from one lease to the next?
 
#136 ·
MSD Calculation Question

I think this is a simple question for someone to answer...

When you calculate the money you owe up front for MSD, I get the rounding. But, do you use the payment amount before or after the discount on the money factor? I'm assuming before...but maybe they are nice....
 
#137 ·
I think this is a simple question for someone to answer...

When you calculate the money you owe up front for MSD, I get the rounding. But, do you use the payment amount before or after the discount on the money factor? I'm assuming before...but maybe they are nice....
You actually use the MF after the reduction, which is another advantage :thumbup:
 
#140 ·
Good or bad idea depends on each persons own cost of capital and or opportunity cost of capital and other associated subjective judgments unique to every individual...like our cars!

However, to answer your question the MSD's and the Net Cap Cost (Cost after Cap Cost Reductions) are mutually exclusive. Don't let your dealer tell you otherwise. The MSD's are provided on behalf of BMWFS, not the dealer and do not affect their commissions. Be prepared to battle with them a bit on this as most dealers are not educated on the MSD program or do not understand it.
 
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