BMWFS Improves the MSD Program!

Originally Posted by schley

Hola my friends it has been many moons. Do a search for this answer. The figures have been run numerous times with people going back and forth. Or you can simply think of it as the way to go. It will work out in excess of 10%.

Yup... worked out to just over 10% tax-free return for me

A question on these MSDs... Say I go with BMWFS lease rates (downpayment, security deposit, the works), and I asked to do the MSDs instead, will the lease rates differ? I can't get the exact same offer if I went the MSD route instead of downpayment right?

I did the MSD approach on my 2002 X5, but have since been told by my dealer that BMW FS no longer does the multiple security deposit leases. I would entertain this again for the X53.5D. So, Is the MSD deal still available? How many MSDs can I do? Right now BMW is offering $1,750 down if you lease - can I apply the MSD on top of thart amount? I want to be informed before I go back and speak with the dealer.

Thanks for all your input.

Originally Posted by Bismark

...but have since been told by my dealer that BMW FS no longer does the multiple security deposit leases.

Your dealer is full of s**t These monkeys give respectable BMW salesmen a bad name. When you go see him, have him call BMW FS on his speaker phone to confirm as much and let us know what he says. I'm sure he will change his tune.

Originally Posted by Bismark

Right now BMW is offering $1,750 down if you lease - can I apply the MSD on top of that amount? I want to be informed before I go back and speak with the dealer.

Sure, you can use both, but why would you want to give a down payment and use MSD's?

I would highly recommend against a down payment on any lease for any reason. If you are in an accident and total the vehicle you will lose the down payment. That is, you will never ever see it again.

On the other hand, you will always get your MSD's back at the end of the lease or in the event that the vehicle is totaled in an accident.

I didn't communicate effectively - as I undestand BMW is providing the $1,750 if you lease the vehicle, and thus I wnated to know if I can still get those funds from BMW in conjunction with my MSD?

Originally Posted by Bismark

I didn't communicate effectively - as I understand BMW is providing the $1,750 if you lease the vehicle, and thus I wanted to know if I can still get those funds from BMW in conjunction with my MSD?

Of course.. The $1,750 incentive decreases the cost of the vehicle and has nothing to do with MSD's. Meaning, you can use MSD's.

I received $4,000 in incentives on my recent 2009 528i lease ($2,500 incentive for leasing a 2009 5 series and a $1,500 incentive for coming out of an X3 lease).

I could have used MSD's on this lease as well, but opted not to this time because I didn't want to tie up $5,600 for 3 years even though I would have saved $1,400 over the course of the 3 year lease.

Just out of curiosity,

If BMW files for bankruptcy will the people who did MSD's get their money back?

Originally Posted by 07X3platinum

Just out of curiosity,

If BMW files for bankruptcy will the people who did MSD's get their money back?

most likely. They are required to be retained in a separate account, and cannot be co-mingled with other funds. Essentially they are held in trust, you would have a secured (priority) claim in the bankruptcy

Originally Posted by pilotman

most likely. They are required to be retained in a separate account, and cannot be co-mingled with other funds. Essentially they are held in trust, you would have a secured (priority) claim in the bankruptcy

Tell that to the Chrysler creditors.... Many of the Chrysler creditors were secured creditors with perfected security interests (UCC1, loan agreement, and, and, and). They still had to take a significant haircut in bankruptcy.

Originally Posted by 07X3platinum

Just out of curiosity,

If BMW files for bankruptcy will the people who did MSD's get their money back?

Is BMW filing for bankruptcy?

Originally Posted by anE934fun

Is BMW filing for bankruptcy?

i am wondering da same lol.

how much will be 7 msdx0.00070, i can save on current 2010 750i

Another cool trick I just implemented on a pending order:

- If you're very close to one of the $50 thresholds on your after-MSD payment (used to calculate the amount of the security deposit) you can use a small cap cost reduction to push that amount below the threshold, and therefore reduce your initial security deposit outlay

- I was able to get my pmt after MSD from $650.31 to just under $650 - a cap cost reduction of $25 reduced my initial outlay from $4900 to $4550, further boosting the incredible IRR of the MSD program!

Quick Q: Is the MSD set at the pre or post tax base rental rate? I'm looking at the following terms:

MSRP $60325
Res Val $37401.50(62%)
Bank fee $725
Init.cap cost $57446
LMF 0.000136
Base mo.Rental $706.91 +your county tax
Doc fee $52.00
Licence $748.00
Sec.deposits $7100(refundable at the lease end term
Drive off $1576.46(total cash due at sign $8676.46

This is a quote from a dealer. I still want to get the cap cost down another grand (he's over 2k over invoice on a 2010), but how much do I need to drop my cap cost to get to $700 or under? This, factored by 7, can be a big difference in the amt of MSD's, and should also lower my monthly payment a bit, but I haven't got my mind around the math yet (long day). Also, anything glaringly wrong about those #'s?
Any assist purty please?
Thanx,
Joel

I am having the same issue with a new lease where the dealer insists that the security deposit is based off the lease including tax, not pretax. what is the right answer? from looking at the bmw lease specials it seems pretax. when you make 7 payments it actually starts to make a difference which one you use!

thanks for any help!

its definetley pre tax.....I just did a deal so I know...

Originally Posted by sheikh36

its definetley pre tax.....I just did a deal so I know...

The security deposit is your monthly payment, INCLUDING TAX, rounded to the nearest $50.

ok so i just read all 14 pages and i have number crunches and **** all over the place in my head, i dont even know where to sleep after all of this ****.
im leesing a 2010 328 and it wont be in for another month and i agreed on 3500 down with everything included (down,tax,title,acq,first,yada yada) and 36 month lease for 555 tax included a month, becouse its at 555 does that not put me in the 550 threshold or is that before tax? after reading alot about leasing and the fact i would lose my down payment if i totaled the car makes me want to not put anything down but i already gave them 500 to order the car. im having a really hard time with my sales person and am now wondering what is the least dollar amount i can get away with for a down payment and after hearing all this about MSDs, it seems like it a really good "investment" i have some extra scratch and if its gonna lower my payment that would be phenominal. overall, i would really like to put the lowest amount down, and try and comprehend all of this MSD mumbo jumbo to english. if ANYONE can contact me at Marbev32@yahoo.com or send me a PM i would appreciate it so much, i do have some time before i sign papers and im trying to do anything i can right now to make this work. heres my numbers...

MSRP: 46,275
lev 63%
lease end value: 29,153.25
initial cap cost: 43,475 (1,200 above invoice)
cash cap reduction: 2,500 ( which i dont understand becouse i agreed to put 3,500 down and i thought thats was the reduction amount is?)
sales tax at 9%: 1,893
adjusted cap is 41,700
cap reduction at 9%:225
money factor: .00235
base monthly rental: 515.03
monthly use tax 9%: 46.35
total monthly: 561.38 ( but i recently negtionated to 555)
license fee:212.65
bank fee-cap: 725

OK so theres all my numbers and i would REALLY APPRECIATE IT IF SOMEONE COULD HELP ME OUT WITH THIS MSD AND EMAIL ME OR GIVE ME ONE NICE POST ON EXACTLY WTF IM DOING AND HOW TO WORK THIS OUT FOR MSD.

THANKS, MARBEV

Two thought, but keep in mind that I'm not an expert:
- Why are you paying 1200 over invoice on a car that will be outdated in two months (when the 211 will be coming out)?
- $555 for a 328 seems like a lot of money to me. I don't know the specs of your car, but a 328i with premium package can be had for under $400 (10k miles) with the kind of money you're putting down.

Are there any major changes of MSD program?

0.00005x7=0.00035 Discount. If your payment before tax is 700$x7=$4900. Am I right?

If MF is 0.000195, it should become 0.0016, I guess!It saves payment by $50-60/mo. So for 36 mox50= $1800, after tying up your $5000, for 3 years!! Have to think about that.

Hmm it's .00007 per MSD, so MSDx7=.00049. Your initial MF is off by a zero, it should be .00195 so after max MSDs, adjusted MF becomes .00146. That's ~1.18% APR off.

Originally Posted by arjuno

Hmm it's .0007 per MSD, so MSDx7=.00049. Your initial MF is off by a zero, it should be .00195 so after max MSDs, adjusted MF becomes .00146. That's ~1.18% APR off.

Thanks Arjuno!

Great help.

I do not have to pay a security deposit per se because of repeated bmw financial status, so 7 MSD is that I can maximally do I guess!

Oops, I meant .00007 (hate all these zeros, they need to come up with a better system), but yes, correct!!

Originally Posted by zibawala

Are there any major changes of MSD program?

0.00005x7=0.00035 Discount. If your payment before tax is 700$x7=$4900. Am I right?

If MF is 0.000195, it should become 0.0016, I guess!It saves payment by $50-60/mo. So for 36 mox50= $1800, after tying up your $5000, for 3 years!! Have to think about that.

I don't know of any zero-risk investment that will yield an $1800 return over three years on a $5000 investment.

Originally Posted by NASA43

I don't know of any zero-risk investment that will yield an $1800 return over three years on a $5000 investment.

agree! but it is your money!

Originally Posted by zibawala

agree! but it is your money!

The point is, if you have $5k sitting in the bank earning 1% interest, it makes better financial sense to use it for MSDs. Now if your savings is low and you need quick access to it, then sure, don't do it. The thing alot of people do is use the $5k as a pre-payment of the lease to lower the monthly payments. It makes more sense to do the MSDs because you get the $5k back at the end of the lease. I have leased 4 BMWs in the past 5 years and maxed my MSDs on each one of them. Saved me alot of money.