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  #1  
Old 05-13-2003, 01:39 PM
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Post Newsflash!!!! MSD program has changed!!!!

Hold on to your hats people; details to follow...
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  #2  
Old 05-13-2003, 01:40 PM
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MSD
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  #3  
Old 05-13-2003, 01:43 PM
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Tanning machine Tanning machine is offline
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multiple security deposits. I'm guessing (and I'll be proven wrong in five minutes, perhaps) that BMW will no longer offer such excellent effective interest rates by allowing people to "buy down" the lease rate with MSDs. They'll decrease the amount of lease savings, because the effective cost is too high.
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  #4  
Old 05-13-2003, 01:46 PM
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Thanks for the explanation. I should try leasing a car sometime, just to learn all the terms and concepts
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  #5  
Old 05-13-2003, 02:00 PM
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Spectre Spectre is offline
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Quote:
Originally posted by rost12
Thanks for the explanation. I should try leasing a car sometime, just to learn all the terms and concepts
That could be a very expensive lesson!

-Peter
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  #6  
Old 05-13-2003, 02:02 PM
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Quote:
Originally posted by Tanning machine
multiple security deposits. I'm guessing (and I'll be proven wrong in five minutes, perhaps) that BMW will no longer offer such excellent effective interest rates by allowing people to "buy down" the lease rate with MSDs. They'll decrease the amount of lease savings, because the effective cost is too high.

Here's the deal:

The maximum number of security deposits is being reduced
to (5), and the benefit (rent charge factor reduction) is being
cut in half, to .00005 for each additional security deposit.

The change will be implemented 7/1.

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  #7  
Old 05-13-2003, 02:21 PM
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Quote:
Originally posted by Spectre
That could be a very expensive lesson!

-Peter
Well, I would be combining something nice and neccesary (a car) with some lessons ... not a bad deal
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  #8  
Old 05-13-2003, 02:42 PM
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WILLIA///M WILLIA///M is offline
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Quote:
Originally posted by Jon Shafer
Here's the deal:

The maximum number of security deposits is being reduced
to (5), and the benefit (rent charge factor reduction) is being
cut in half, to .00005 for each additional security deposit.

The change will be implemented 7/1.

That blows.
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  #9  
Old 05-14-2003, 07:35 AM
mecklaiz mecklaiz is offline
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Ah crap

That sucks.

I guess it's a good thing I'm leasing a bimmer now because it looks like this is the last time I'm going to be able to afford it.

That really blows because the difference between BMW and MB will become much smaller in terms of lease rates. As it stands, with MSD BMW blows MB away and there's about $100/month lease payment difference between the two for equivalently priced cars.

Major bummer dude.

Z

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  #10  
Old 05-14-2003, 01:16 PM
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Thumbs down

Ouch! I'm glad I took advantage of the program while it lasted. I guess I'll either be buying out my car at the end of the lease or moving elsewhere. An additional $100 per month is going to be tough to swallow.
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  #11  
Old 05-14-2003, 01:27 PM
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I guess w/ the recent low money factors, people were reducing their money factors to such a low amount that BMW was barely making money (if at all). Congratulations to anyone (like Jon) whoo leased a 5 series in April using MSDs-- you probably got one of the best leasing deals of all time!
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  #12  
Old 05-15-2003, 04:50 PM
mecklaiz mecklaiz is offline
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Is this for all BMWs or just certain models? Is it across the board?

Z
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  #13  
Old 05-18-2003, 03:41 AM
SupraRZ SupraRZ is offline
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here

http://www.imakenews.com/autospies/e...e000151445.cfm
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  #14  
Old 05-18-2003, 09:19 AM
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I'm still a little confused as to MSD...I have searched and read most of the posts and have a couple questions.

OK, if the sales support rate is 0.0012 on a MY03 330i sedan why am I having to pay down 3 security deposits of $650 each to get there? Is it because MSD (for those that know about it) really a way for people to buy down rates dealers have bumped up over the sales support rate? Does the dealership make money by having the customer put down MSD's even if the rate hits the published rate?

Also, I believe that you can't ever go below the published rate, is this correct?

Thanks.
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  #15  
Old 05-18-2003, 09:20 AM
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Quote:
Originally posted by greginaz1
I'm still a little confused as to MSD...I have searched and read most of the posts and have a couple questions.

OK, if the sales support rate is 0.0012 on a MY03 330i sedan why am I having to pay down 3 security deposits of $650 each to get there? Is it because MSD (for those that know about it) really a way for people to buy down rates dealers have bumped up over the sales support rate? Does the dealership make money by having the customer put down MSD's even if the rate hits the published rate?

Also, I believe that you can't ever go below the published rate, is this correct?

Thanks.
By the way I am not against the dealership making money I just like to understand things I do.

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  #16  
Old 05-18-2003, 09:44 AM
mecklaiz mecklaiz is offline
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Thanks for this info.

It's unfortunate but understandable.

Z
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  #17  
Old 05-18-2003, 09:46 AM
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Quote:
Originally posted by greginaz1
I'm still a little confused as to MSD...I have searched and read most of the posts and have a couple questions.

OK, if the sales support rate is 0.0012 on a MY03 330i sedan why am I having to pay down 3 security deposits of $650 each to get there? Is it because MSD (for those that know about it) really a way for people to buy down rates dealers have bumped up over the sales support rate? Does the dealership make money by having the customer put down MSD's even if the rate hits the published rate?

Also, I believe that you can't ever go below the published rate, is this correct?

Thanks.

Arrgg...substitute 'sales support' for 'published' above. I believe published is what the dealer tells you after marking up.
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