Welcome to Bimmerfest -- The #1 Online Community for BMW related information! Please enjoy the discussion forums below and share your experiences with the 200,000 current, new and past BMW owners. The forums are broken out by car model and into other special interest sections such as BMW European Delivery and a special forum to voice your questions to the many BMW dealers on the site to assist our members!

Please follow the links below to help get you started!

Go Back   Bimmerfest - BMW Forums > The Best of Bimmerfest! > Ask-A-Dealer

Ask-A-Dealer
Talk to our team of BMW Client Advisors. Get all of your buying/financing/leasing questions answered here!

Reply
 
Thread Tools Display Modes
  #126  
Old 09-27-2006, 08:43 PM
schley's Avatar
schley schley is offline
This is the Cubs year)
Location: Saudi Arabia (no I'm not kidding)
 
Join Date: May 2005
Posts: 4,001
Mein Auto: camel
Quote:
Originally Posted by Adesh View Post
It's been 2 months since I got my lease and the local BMW dealer also told me that doing MSD's was not financially beneficial. He was very firm about it.

Not sure why they do that...if the customer has done the analysis then the dealer just looks ignorant about their product (at best) or untruthful (at the worst).

I did the analysis (as many on this forum have) and even had my CPA-sister look at it; the MSD program makes a lot of financial sense (assuming you have the cash to throw at it).

This actually was the "last straw" for me with that dealer and I went to a different dealer to lease my car.
I totally agree. They are either incompetent or not trustworthy, and you don't want to deal with either. Good move.
__________________
2006 Z4 3.0si -pickup 9/23/06- turned in 8/2/08, titanium silver, black leather, aluminum, step, premium, sport, heated seats
2006 330i e90 ED -Sold 10/23/06
BMWCCA # 350430
Reply With Quote
  #127  
Old 10-04-2006, 09:10 AM
RVD RVD is offline
Officially Welcomed to the 'Fest
Location: Redondo Beach, CA
 
Join Date: Sep 2006
Posts: 244
Mein Auto: 2009 128i convertible
i was able to get 8 MSDs yesterday on my lease. we were all set on getting 7 MSDs but my CA came up to me and said i could do 1 more because i'm a first time leaser (at least that's what i think he said). either way, i was able to do 1 more and it brought my MF down from 0.00166 to 0.00151. i'm not sure why it's not 0.00159 but i didn't sit there and argue. i got buy rate but had to add 0.00015 b/c i'm a first time leaser then subtracted all the MSDs.

RVD.
__________________
My long, crazy, picture/video filled ED delivery from 2/2012: http://www.bimmerfest.com/forums/sho...941&highlight=

2012 750i AH - Imperial Blue, Oyster and Black Nappa, Driver Assist Package, Sirius. ED: 2/27/2012 Dropped Off: 3/1/2012 Ready for Pick Up: 4/13/2012, Actual Pick Up: 4/16/2012

2009 BMW 128i Convertible

RIP
2008 Chrysler Town & Country
2006 BMW 750Li
1987 BMW 325
2006 Toyota Sequoia 4WD
2003 Mercedes Benz E320
1996 Ford Explorer XLT
Reply With Quote
  #128  
Old 10-04-2006, 10:49 AM
missing23's Avatar
missing23 missing23 is offline
Banned
Location: Chicago...one day...
 
Join Date: Feb 2002
Posts: 6,160
Mein Auto: 06 EZGO TXT, chipped!
Quote:
Originally Posted by RVD View Post
i was able to get 8 MSDs yesterday on my lease. we were all set on getting 7 MSDs but my CA came up to me and said i could do 1 more because i'm a first time leaser (at least that's what i think he said). either way, i was able to do 1 more and it brought my MF down from 0.00166 to 0.00151. i'm not sure why it's not 0.00159 but i didn't sit there and argue. i got buy rate but had to add 0.00015 b/c i'm a first time leaser then subtracted all the MSDs.

RVD.
You do not have 8 MSD's per se...as a new BMWFS customer an SD is required to reduce the MF by 0.00015 (returning BMWFS customers do not have to do this)...the rest of your MSD's are at 7 times 0.0007 each...
Reply With Quote
  #129  
Old 10-04-2006, 11:17 AM
schley's Avatar
schley schley is offline
This is the Cubs year)
Location: Saudi Arabia (no I'm not kidding)
 
Join Date: May 2005
Posts: 4,001
Mein Auto: camel
Quote:
Originally Posted by RVD View Post
i was able to get 8 MSDs yesterday on my lease. we were all set on getting 7 MSDs but my CA came up to me and said i could do 1 more because i'm a first time leaser (at least that's what i think he said). either way, i was able to do 1 more and it brought my MF down from 0.00166 to 0.00151. i'm not sure why it's not 0.00159 but i didn't sit there and argue. i got buy rate but had to add 0.00015 b/c i'm a first time leaser then subtracted all the MSDs.

RVD.
Greg is correct. Your CA basically added .00015 from the outset to waive the initial security deposit. It is to your advantage to put down the initial security deposit. You will have a total of 8.
__________________
2006 Z4 3.0si -pickup 9/23/06- turned in 8/2/08, titanium silver, black leather, aluminum, step, premium, sport, heated seats
2006 330i e90 ED -Sold 10/23/06
BMWCCA # 350430
Reply With Quote
  #130  
Old 10-04-2006, 04:30 PM
RVD RVD is offline
Officially Welcomed to the 'Fest
Location: Redondo Beach, CA
 
Join Date: Sep 2006
Posts: 244
Mein Auto: 2009 128i convertible
ah, it all makes sense now. i didn't realize i had the option to put down the initial SD to avoid the 0.00015.

RVD.
__________________
My long, crazy, picture/video filled ED delivery from 2/2012: http://www.bimmerfest.com/forums/sho...941&highlight=

2012 750i AH - Imperial Blue, Oyster and Black Nappa, Driver Assist Package, Sirius. ED: 2/27/2012 Dropped Off: 3/1/2012 Ready for Pick Up: 4/13/2012, Actual Pick Up: 4/16/2012

2009 BMW 128i Convertible

RIP
2008 Chrysler Town & Country
2006 BMW 750Li
1987 BMW 325
2006 Toyota Sequoia 4WD
2003 Mercedes Benz E320
1996 Ford Explorer XLT
Reply With Quote
  #131  
Old 10-06-2006, 01:32 PM
bmwlifer bmwlifer is offline
Registered User
Location: SFBA
 
Join Date: Sep 2006
Posts: 10
Mein Auto: 2006 330i ZSP ZPP 6MT
Returning BMWFS cutomer question

I had leased a car a few years ago through BMWFS. Does the initial security deposit waiver for returning customers apply to me on a new lease, or is the deposit required to reduce the MF by .00015 since I'm not coming immediately from one lease to the next?
Reply With Quote
  #132  
Old 10-10-2006, 02:44 PM
Kypt Kypt is offline
Registered User
Location: West Chester, PA
 
Join Date: Mar 2006
Posts: 71
Mein Auto: '07 335i & '02 R1200C
If you were to transfer your lease for whatever reason to another person, what happens to your deposits? Would the new person get the money at the end of the lease, or would it still come back to you?
Reply With Quote
  #133  
Old 10-10-2006, 03:16 PM
mclaren's Avatar
mclaren mclaren is offline
Chairman of the Bored
Location: Central Florida
 
Join Date: Jan 2005
Posts: 3,066
Mein Auto: 2013 650i Coupe
Quote:
Originally Posted by Kypt View Post
If you were to transfer your lease for whatever reason to another person, what happens to your deposits? Would the new person get the money at the end of the lease, or would it still come back to you?
This has been dicussed before, the answer was the new person would get the deposits. The exact thing happened to one of the posters and when he found out he contacted the person who took over the lease and was, luckily, able to get him to send him the money.
__________________

2012 328i Coupe
2013 650i Coupe ( retired for Porsche 911 )
Reply With Quote
  #134  
Old 10-19-2006, 12:00 AM
pciguy pciguy is offline
Registered User
Location: San Francisco
 
Join Date: Sep 2006
Posts: 60
Mein Auto: ED 07 328i Wagon
is the SD calculated based on the payment amount + tax or just the payment amount?

Thanks,
Reply With Quote
  #135  
Old 10-19-2006, 08:21 AM
missing23's Avatar
missing23 missing23 is offline
Banned
Location: Chicago...one day...
 
Join Date: Feb 2002
Posts: 6,160
Mein Auto: 06 EZGO TXT, chipped!
Quote:
Originally Posted by pciguy View Post
is the SD calculated based on the payment amount + tax or just the payment amount?

Thanks,
Total payment including tax rounded to the next $50 increment.
Reply With Quote
  #136  
Old 11-15-2006, 08:41 AM
shosan521 shosan521 is offline
Officially Welcomed to the 'Fest
Location: Portland, OR
 
Join Date: Nov 2006
Posts: 274
Send a message via AIM to shosan521
Mein Auto: 02 530i, 07 550i
MSD Calculation Question

I think this is a simple question for someone to answer...

When you calculate the money you owe up front for MSD, I get the rounding. But, do you use the payment amount before or after the discount on the money factor? I'm assuming before...but maybe they are nice....
Reply With Quote
  #137  
Old 11-15-2006, 11:39 AM
schley's Avatar
schley schley is offline
This is the Cubs year)
Location: Saudi Arabia (no I'm not kidding)
 
Join Date: May 2005
Posts: 4,001
Mein Auto: camel
Quote:
Originally Posted by shosan521 View Post
I think this is a simple question for someone to answer...

When you calculate the money you owe up front for MSD, I get the rounding. But, do you use the payment amount before or after the discount on the money factor? I'm assuming before...but maybe they are nice....
You actually use the MF after the reduction, which is another advantage
__________________
2006 Z4 3.0si -pickup 9/23/06- turned in 8/2/08, titanium silver, black leather, aluminum, step, premium, sport, heated seats
2006 330i e90 ED -Sold 10/23/06
BMWCCA # 350430
Reply With Quote
  #138  
Old 11-15-2006, 04:57 PM
shosan521 shosan521 is offline
Officially Welcomed to the 'Fest
Location: Portland, OR
 
Join Date: Nov 2006
Posts: 274
Send a message via AIM to shosan521
Mein Auto: 02 530i, 07 550i
Quote:
Originally Posted by schley View Post
You actually use the MF after the reduction, which is another advantage
Yup...I just confirmed that with BMWFS. Then the dealer tried to tell me no, so I had him call and sure enough...we were right! Thanks all!
Reply With Quote
  #139  
Old 11-24-2006, 12:03 AM
DavidNJ DavidNJ is offline
Just Confused...
Location: Warren, NJ
 
Join Date: Apr 2004
Posts: 310
Mein Auto: 01 530i; 04 S2k; 94 Supra
Can this be combined with an aggressive cap cost reduction? If so, how aggressive a reduction is allowed? To me, borrowing money on the lease does not seem advantageous. However, the guaranteed residual does, especially in a heavily optioned car.
Reply With Quote
  #140  
Old 11-24-2006, 03:01 AM
shosan521 shosan521 is offline
Officially Welcomed to the 'Fest
Location: Portland, OR
 
Join Date: Nov 2006
Posts: 274
Send a message via AIM to shosan521
Mein Auto: 02 530i, 07 550i
Quote:
Originally Posted by DavidNJ View Post
Can this be combined with an aggressive cap cost reduction? If so, how aggressive a reduction is allowed? To me, borrowing money on the lease does not seem advantageous. However, the guaranteed residual does, especially in a heavily optioned car.
Good or bad idea depends on each persons own cost of capital and or opportunity cost of capital and other associated subjective judgments unique to every individual...like our cars!

However, to answer your question the MSD's and the Net Cap Cost (Cost after Cap Cost Reductions) are mutually exclusive. Don't let your dealer tell you otherwise. The MSD's are provided on behalf of BMWFS, not the dealer and do not affect their commissions. Be prepared to battle with them a bit on this as most dealers are not educated on the MSD program or do not understand it.
Reply With Quote
  #141  
Old 11-24-2006, 07:38 AM
schley's Avatar
schley schley is offline
This is the Cubs year)
Location: Saudi Arabia (no I'm not kidding)
 
Join Date: May 2005
Posts: 4,001
Mein Auto: camel
Quote:
Originally Posted by DavidNJ View Post
Can this be combined with an aggressive cap cost reduction? If so, how aggressive a reduction is allowed? To me, borrowing money on the lease does not seem advantageous. However, the guaranteed residual does, especially in a heavily optioned car.
Why would you want to lower your apr on your depreciation (mf) by using msd's and then not use the advantage of that by lowering the depreciation amount in a cap cost reduction?

If you lower your interest rate to let's say .00101, which is 2.424% apr, you wouldn't want to pay down the $ you are paying that % interest on. You can do many more things wiht that money that would be more beneficial to you then saving 2.424% interest on your depreciation payments.

See what I mean?
__________________
2006 Z4 3.0si -pickup 9/23/06- turned in 8/2/08, titanium silver, black leather, aluminum, step, premium, sport, heated seats
2006 330i e90 ED -Sold 10/23/06
BMWCCA # 350430
Reply With Quote
  #142  
Old 11-28-2006, 11:54 PM
carnutfan's Avatar
carnutfan carnutfan is offline
Officially Welcomed to the 'Fest
Location: Southern California
 
Join Date: Oct 2006
Posts: 159
Mein Auto: 2014 650i Convertible
can someone tell me what socal/orange county dealers will do MSDS? I want to put down 8 as a new BMWFS customer. My dealer is giving me heartache on this. They either don't get it or don't want to get it. Since they're the largest, I can't figure out why, but I'm at the end of my current lease and can't screw around with them anymore. Thanks.
Reply With Quote
  #143  
Old 11-29-2006, 05:45 PM
Gianny Gianny is offline
Officially Welcomed to the 'Fest
Location: Los Angeles
 
Join Date: Nov 2006
Posts: 335
Mein Auto: 530I
Los Angeles Area dealer that accepts MSD

Check your PM.

Last edited by Gianny; 11-29-2006 at 05:47 PM.
Reply With Quote
  #144  
Old 12-11-2006, 10:02 PM
goheels98 goheels98 is offline
Registered User
Location: NC
 
Join Date: Dec 2006
Posts: 6
Mein Auto: 2007 525i (Very Soon)
Hi--I am new to this site and I appreciate all of the valuable information on this thread. I ordered a 2007 525i which will be docking on 12/14 and will be ready for pick-up sometime shortly after that.

I have already negotiated the lease, but I haven't signed any documentation yet. This is the first I've ever heard of MSDs though--is it too late for me to do this? I was planning to put $2,750 down with some of it going to a cap cost reduction. Sounds like I should shift that to MSDs though... Thoughts?

Also, random question -- is gap insurance provided by BMWFS or your own insurance carrier? If BMWFS, is that included, can it be negotiated, or is there an additional fee? Sorry if these gap insurance answers are available elsewhere....haven't found it yet!

Thanks in advance!
Reply With Quote
  #145  
Old 12-11-2006, 10:23 PM
schley's Avatar
schley schley is offline
This is the Cubs year)
Location: Saudi Arabia (no I'm not kidding)
 
Join Date: May 2005
Posts: 4,001
Mein Auto: camel
Quote:
Originally Posted by goheels98 View Post
Hi--I am new to this site and I appreciate all of the valuable information on this thread. I ordered a 2007 525i which will be docking on 12/14 and will be ready for pick-up sometime shortly after that.

I have already negotiated the lease, but I haven't signed any documentation yet. This is the first I've ever heard of MSDs though--is it too late for me to do this? I was planning to put $2,750 down with some of it going to a cap cost reduction. Sounds like I should shift that to MSDs though... Thoughts?

Also, random question -- is gap insurance provided by BMWFS or your own insurance carrier? If BMWFS, is that included, can it be negotiated, or is there an additional fee? Sorry if these gap insurance answers are available elsewhere....haven't found it yet!

Thanks in advance!
you can renegotiate your lease with MSD's factored in. Gap insurance is included with all bmwfs leases.
__________________
2006 Z4 3.0si -pickup 9/23/06- turned in 8/2/08, titanium silver, black leather, aluminum, step, premium, sport, heated seats
2006 330i e90 ED -Sold 10/23/06
BMWCCA # 350430
Reply With Quote
  #146  
Old 12-11-2006, 10:53 PM
Ferrara Ferrara is offline
Registered User
Location: Los Angeles
 
Join Date: Dec 2006
Posts: 78
Mein Auto: TBD
Quote:
Originally Posted by Gianny View Post
Check your PM.
Can I get that list, please? I am considering doing MSD on my next purchase in Spring 07
__________________
My BMW History: 1979 BMW 320i | 1997 BMW 328iC | 1998 BMW M3 | 2003 Range Rover HSE | 2007 Range Rover SC |2010 BMW ???
Reply With Quote
  #147  
Old 12-12-2006, 07:42 AM
SignHere's Avatar
SignHere SignHere is offline
Registered Abuser
Location: Austin, TX
 
Join Date: Apr 2006
Posts: 547
Mein Auto: 2011 550i Gran Turismo
No renegotiation is required. Just inform your CA that you intend to take advantage of the MSD program provided by BMW FS. It costs the dealership nothing and saves you money. Everybody wins!
__________________
Supreme Omnipotent Bobohead-Currently seeking time off for good behavior!
Reply With Quote
  #148  
Old 12-12-2006, 04:32 PM
goheels98 goheels98 is offline
Registered User
Location: NC
 
Join Date: Dec 2006
Posts: 6
Mein Auto: 2007 525i (Very Soon)
Thanks for the info, schley and SignHere!
Reply With Quote
  #149  
Old 12-13-2006, 06:21 AM
BloodRedHog's Avatar
BloodRedHog BloodRedHog is offline
G o H o g s G o !
Location: Denver, Colorado
 
Join Date: Mar 2004
Posts: 1,185
Mein Auto: 08 535i Sport/06 X5 4.8is
Guys, this is the most informative thread in some time. Can I ask a few questions...

I am no finance expert, so bear with me...

The MSD program is basically a way to lower the money factor by 1.68% per deposit, which equals the lease payment (rounded), and you are allowed up to 7?

So I could lower the money factor by 11.76%?

And I get those deposits back?

So I am making a return on money during the lease better than any CD out there, right?

If I not a current BMWFS user, then the promo money factor will be raised by .0015, but I can use an initial SD to waive that, and still have 7 more to use?

I am looking at the X5 and the lease right now is .00322. So I would one SD to keep that from being raised to .00472?
__________________
2008 535i l Black Sapphire l Sport l Paddles l Prem l HUD l Nav

2006 X5 4.8is l TiAg wife

2004 330i l ZHP l TiAg l Moonroof l Xenon l Alcantara I Modified CDV I RE Clutch Stop retired

1997 328is l TiAg retired
Reply With Quote
  #150  
Old 12-13-2006, 06:57 AM
kyfdx's Avatar
kyfdx kyfdx is offline
Who, me?
Location: Kentucky
 
Join Date: Aug 2003
Posts: 2,448
Mein Auto: 2006 330Ci ZHP
Quote:
Originally Posted by BloodRedHog View Post
Guys, this is the most informative thread in some time. Can I ask a few questions...

I am no finance expert, so bear with me...

The MSD program is basically a way to lower the money factor by 1.68% per deposit, which equals the lease payment (rounded), and you are allowed up to 7?

So I could lower the money factor by 11.76%?

And I get those deposits back?

So I am making a return on money during the lease better than any CD out there, right?

If I not a current BMWFS user, then the promo money factor will be raised by .0015, but I can use an initial SD to waive that, and still have 7 more to use?

I am looking at the X5 and the lease right now is .00322. So I would one SD to keep that from being raised to .00472?

You are missing a ZERO.. .00015..

.00322 would then be .00337

It is a good deal, but not quite as good as it would be with one less zero.. ;-)

The MSDs are .00007 (4 zeroes)... X 7 MSDs = .00049 reduction

regards,
kyfdx
Reply With Quote
Reply

Bookmarks


Forum Navigation
Go Back   Bimmerfest - BMW Forums > The Best of Bimmerfest! > Ask-A-Dealer
Today's Posts Search
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On



Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
BMWFS Lease Program - October 2005 dencoop Ask-A-Dealer 3 10-12-2005 03:41 PM
MSD program changing?? FIA Ask-A-Dealer 2 06-04-2003 10:17 PM
Newsflash!!!! MSD program has changed!!!! Jon Shafer Ask-A-Dealer 16 05-18-2003 09:46 AM


All times are GMT -7. The time now is 11:28 PM.


Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
© 2001-2011 performanceIX, Inc. All Rights Reserved .: guidelines .:. privacy .:. terms