BMWFS Improves the MSD Program!

In figuring out my lease, I'm assuming that the total MSD is subtracted from the capitalized cost?

Originally Posted by NukezDoc

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.

Originally Posted by SARAFIL

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.

This is good info...but excess wear and tear on a totalled car?

Originally Posted by adrian's bmw

No, it isn't. If you have 7 security deposits, it's a .00049 reduction in the money factor, not the cap cost.

Oops. I figured this out after playing with MS Excel for a while. Some serious wishful thinking on my part.

Originally Posted by greginaz1

This is good info...but excess wear and tear on a totalled car?

It was a general statement about all cases, not just the case when your car is totalled.

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?

No. MSD applies to leases only.

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.

Originally Posted by blueguydotcom

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.

Probably because like most BMW salespeople he doesn't understand them...

Originally Posted by greginaz1

Probably because like most BMW salespeople he doesn't understand them...

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...

Originally Posted by blueguydotcom

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.

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).

My SA said New York doesn't allow multiple security deposits. True?

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.

Originally Posted by blueguydotcom

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.

can this be applied for ED and NY licenses....

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?

.

Originally Posted by piku

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.

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.

Originally Posted by bavarian06

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.

Originally Posted by greginaz1

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.

Originally Posted by bavarian06

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.

What do you mean by split half?

0.00195 MF for the 330i equals to 0.00146 after the 7 MSD or .00049 reduction.

Originally Posted by bavarian06

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.

Geez, I'll remember not to ask you for help.

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.

Originally Posted by greginaz1

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