The Security Deposits are refunded if the car is totalled. BMWFS will only keep a portion of the Security Deposit to pay unpaid charges at the end of the lease... excess wear and tear, mileage, late payments, etc.
I live in Illinois and am wondering if MSD to bring down the money factor is available for the Owners Choice(lease style)program or just with traditional leases?
My sales guy tried to talk me out of the 7 msds yesterday...lol. "They really don't make much of a difference." Really? I see a $37 a month savings. That's a nice chunk of dough over 24 months.
Weird thing is, I did 10 MSDs with the same salesguy 3 years ago. At that time he tried to talk me out of it too.
My sales guy tried to talk me out of the 7 msds yesterday...lol. "They really don't make much of a difference." Really? I see a $37 a month savings. That's a nice chunk of dough over 24 months.
Weird thing is, I did 10 MSDs with the same salesguy 3 years ago. At that time he tried to talk me out of it too.
I was told today that if I had insisted on the 7 MSDs, then the dealership would have to change my MF of 0.00245 (ED extra of 0.0003 and dealer markup of 0.0002) to something higher. Am I missing something? Can they really do that? The MSD program is through BMWFS, not the dealership. How can they change my agreed upon MF if I choose to use MSDs?
I was told today that if I had insisted on the 7 MSDs, then the dealership would have to change my MF of 0.00245 (ED extra of 0.0003 and dealer markup of 0.0002) to something higher. Am I missing something? Can they really do that? The MSD program is through BMWFS, not the dealership. How can they change my agreed upon MF if I choose to use MSDs?
Does the MSD's then affect only the "rental" portion of the lease calculation and not the "depreciation" portion? I'm assuming the MSD dollar amount for the MF buy down is paid with a separate check to BMW Financial (ex. $4200 ... for a 7 SD buydown of .00049 on a previously calcuated lease of $594.00).
Called another dealer and asked...same run-around: nobody uses those, bmw doesn't want people to use them, they don't make much difference, it's a waste of your money. WTF?
I'm not a math expert, BUT if 7 MSDS will drop an MF 0.00049 and you can see a $700-900 savings for 3 grand down over two years, that seems like a big difference and a great ROI.
Weirdest thing, I heard about MSDs from a Beverly Hills dealership in 03. That guy got my email about a possible 330i purchase and turned me on to MSDs and leasing. Ever since all other dealers/salesguys get ansty when I mention them.
I'm not a math expert, BUT if 7 MSDS will drop an MF 0.00049 and you can see a $700-900 savings for 3 grand down over two years, that seems like a big difference and a great ROI.
Is this accurate? in order to get the monthly payment(security deposit amount), the original MF is one of the variables involved. So you actually have to do the formula again with the new MF?
Does anyone know if dealers will let you put 7 security deposits? Meaning, has it been done?
I figured 7 SD comes out to be $3,800 based on my monthly. This translates to over $1,200 in savings over 36 months. $3,800 secured in a 5% CD yields roughly $600. So it makes sense to do the MSD.
If they dont, I figure I'll just drop $3,800 as down to reduce to the capital cost. It translates to almost the same thing in the costs associated in leasing for 36 months with 7 MSD.
Does anyone know if dealers will let you put 7 security deposits? Meaning, has it been done?
I figured 7 SD comes out to be $3,800 based on my monthly. This translates to over $1,200 in savings over 36 months. $3,800 secured in a 5% CD yields roughly $600. So it makes sense to do the MSD.
If they dont, I figure I'll just drop $3,800 as down to reduce to the capital cost. It translates to almost the same thing in the costs associated in leasing for 36 months with 7 MSD.
I put down 10 security deposits back when that was the program in 03...so yes it can be done...the salesguy might not be up on the program so call your dealer and ask to speak with the finance guy.
Absolutely DON'T put $3800 down because you won't get that back if you total the car during the lease.
I never though of that. I guess that would be true, insurance company will only pay the value of the car and not factor the amount of your down. So I guess I better demand the MSD. Is there any reason why the dealer wouldn't want you to do it? I figure they earn less since they are charging you a lower rate.
I never though of that. I guess that would be true, insurance company will only pay the value of the car and not factor the amount of your down. So I guess I better demand the MSD. Is there any reason why the dealer wouldn't want you to do it? I figure they earn less since they are charging you a lower rate.
I didn't heed your advise (whole splitting junk) and the sales man just lowered the MF to adjust for the FULL reduction of 0.00049. Signed for my car today, I'm happy.
greginaz1 said:
If you don't understand what I am saying you need to do some research on this board by utilizing the search function.
Does anyone know if dealers will let you put 7 security deposits? Meaning, has it been done?
I figured 7 SD comes out to be $3,800 based on my monthly. This translates to over $1,200 in savings over 36 months. $3,800 secured in a 5% CD yields roughly $600. So it makes sense to do the MSD.
If they dont, I figure I'll just drop $3,800 as down to reduce to the capital cost. It translates to almost the same thing in the costs associated in leasing for 36 months with 7 MSD.
i did 10 in 03. My current dealer is just plain obtuse and thinks my use of MSDs hurts them, so I couldn't use them on my e90.
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