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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.
 
#27 ·
NukezDoc said:
In figuring out my lease, I'm assuming that the total MSD is subtracted from the capitalized cost?
No, it isn't. If you have 7 security deposits, it's a .00049 reduction in the money factor, not the cap cost.
 
#30 ·
greginaz1 said:
This is good info...but excess wear and tear on a totalled car?:eeps:
It was a general statement about all cases, not just the case when your car is totalled.
 
#31 ·
MSD for Owner's Choice???

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?
 
#33 ·
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. :D
 
#34 ·
blueguydotcom said:
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. :D
Probably because like most BMW salespeople he doesn't understand them...:D
 
#35 ·
greginaz1 said:
Probably because like most BMW salespeople he doesn't understand them...:D
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?

Confused...
 
#36 ·
blueguydotcom said:
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?

Confused...
wow... I'm curious about that answer as well, it would be another let down if we find out that you are being deceived by a dealer. :thumbdwn:
 
#37 ·
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).
 
#38 ·
My SA said New York doesn't allow multiple security deposits. True?
 
#39 ·
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.
 
#40 ·
blueguydotcom said:
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.
It about 9.5% per year ROI - but tax free so is effectively about 12-13% return per year.

I think the F&I guys find it a hassle to enter the extra data into the form. :dunno:
 
#228 ·
I have a question.

Let's say my monthly payment before MSD was $463 and after MSD is applied it goes down to $438. Will the security deposits be, $500 or $450 each?

.
It would be $450.
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?
 
#44 ·
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.
 
#45 ·
bavarian06 said:
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.
 
#46 ·
greginaz1 said:
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.
 
#47 ·
bavarian06 said:
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.
The insurance would only pay off the lease...with nothing coming back to you.

No reason they wouldn't do it...split the 0.0004 MF markup with them (+0.0002) and they will be happy.
 
#49 ·
bavarian06 said:
What do you mean by split half?

0.00195 MF for the 330i equals to 0.00146 after the 7 MSD or .00049 reduction.
BMW dealers can mark up the MF buy rate by 0.0004...if you split the difference on that with them that should make them happy.

If you don't understand what I am saying you need to do some research on this board by utilizing the search function.
 
#51 ·
bavarian06 said:
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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