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  #201  
Old 01-28-2007, 10:43 AM
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Quote:
Originally Posted by schley View Post
I didn't read your post except for "are the advertised deals just a sham". YES THEY ARE. You can negotiate a better deal farily easily with knowledge on this forum.
+1

Scrap trying to recreate the lease 'special' stuff you see...it is a waste of time.

By using this site you can find out what a fair profit over invoice is for the model you want...find out the buy rate MF and corresponding residual for the term you want...negotiate cap, MF and acquisition fee with your dealer...investigate ED and MSD programs...done!

Hundreds of discussions on this site regarding the above.
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  #202  
Old 01-29-2007, 07:32 AM
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Originally Posted by greginaz1 View Post
+1

Scrap trying to recreate the lease 'special' stuff you see...it is a waste of time.


.

Exactly

The one piece of information that the advertisement doesn't give? Selling price. You can't reverse-calculate the other numbers without it.
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  #203  
Old 02-23-2007, 03:32 PM
krburrell krburrell is offline
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Los Angeles Area dealer that accepts MSD

Quote:
Originally Posted by carnutfan View Post
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.
I'm in the market for an 07 X5. Can someone please give me this info for socal/orange county dealers?

Thanks,

Keith
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  #204  
Old 02-23-2007, 10:48 PM
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Los Angeles Area dealer that accepts MSD

krburrel, check your PM.
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  #205  
Old 03-09-2007, 03:52 AM
Ant 550 Ant 550 is offline
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Need help with lease question

Can you please tell me what you mean by 7SD do you mean 7 sec deposits? What is this vs a cap cost red payment? I'm not understanding this for example if a lease was 1000 a month and you put down 3000 this would reduce your payment correct. So what does this 7 SD mean in this equation if applied. I would really appreciate some insight into this I want to go into the dealer with this info.
Thanks
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  #206  
Old 03-09-2007, 06:21 AM
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Quote:
Originally Posted by Ant 550 View Post
Can you please tell me what you mean by 7SD do you mean 7 sec deposits? What is this vs a cap cost red payment? I'm not understanding this for example if a lease was 1000 a month and you put down 3000 this would reduce your payment correct. So what does this 7 SD mean in this equation if applied. I would really appreciate some insight into this I want to go into the dealer with this info.
Thanks
It means 7 extra security deposits, say $450X7. Capital Cost Reduction is basiaclly down payment. It goes to lower the capital value of the lease. There is nothing to do with security deposits. SD is like deposit you give to landlord when leasing a place. The purpose of extra SD is to lower the interest rate on the lease.
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  #207  
Old 03-09-2007, 01:51 PM
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Do all manufactures do this besides BMW I might get an Audi for my wife what do I ask for how many sd can I put down to lower the interest rate? Please excuse me but I'm not that familar with leasing
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  #208  
Old 03-09-2007, 02:01 PM
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Quote:
Originally Posted by Ant 550 View Post
Do all manufactures do this besides BMW I might get an Audi for my wife what do I ask for how many sd can I put down to lower the interest rate? Please excuse me but I'm not that familar with leasing
Most of them do, though they don't really advertise it. I know Audi does because I was looking at them several years ago. They aren't all the same though in how much it reduces the money factor. Find an Audi board to get the specifics on their program.
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  #209  
Old 03-15-2007, 04:38 PM
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What happens to the MSDs if you total the car?
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  #210  
Old 03-15-2007, 08:25 PM
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You get them back like any security deposit
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  #211  
Old 03-19-2007, 07:53 PM
newbeginnings newbeginnings is offline
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I was also told that MSD's do not apply in NY. Any truth to this?
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  #212  
Old 03-19-2007, 07:57 PM
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Originally Posted by newbeginnings View Post
I was also told that MSD's do not apply in NY. Any truth to this?
Total truth limit is 749 total for deposits. You can do them outside of NY and register in NY however as a way around it.
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  #213  
Old 03-19-2007, 08:01 PM
ProRail ProRail is offline
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I'll see your MSD...and I'll raise you 1. Why would anybody need more than 1 security deposit? Is that like nuclear overkill?
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  #214  
Old 03-19-2007, 08:24 PM
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Its all explained in prior posts. thnx schley
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  #215  
Old 03-31-2007, 09:57 PM
tekmiester tekmiester is offline
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Buying in NY but registering in NJ

What if you life in a different state (and will register the car there) but buy the car from an NY dealer... Does the $750 limit applly?
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  #216  
Old 04-02-2007, 12:02 PM
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Quote:
Originally Posted by ProRail View Post
I'll see your MSD...and I'll raise you 1. Why would anybody need more than 1 security deposit? Is that like nuclear overkill?
To lower the MF and basically lower the finance charges you will encure on the lease.

If you put money down in a cap reduciton and total the car, you lose that money. If you do MSD, and total your car you get the MSD back.

I have a question...

What are the termination fee associated with the BMW lease? Do they requrie you to have Gap insurance to cover those fees in case you total or get your car stolen? If so how much does the gap cost?
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  #217  
Old 04-02-2007, 12:29 PM
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Quote:
Originally Posted by Davisjl View Post
To lower the MF and basically lower the finance charges you will encure on the lease.

If you put money down in a cap reduciton and total the car, you lose that money. If you do MSD, and total your car you get the MSD back.

I have a question...

What are the termination fee associated with the BMW lease? Do they requrie you to have Gap insurance to cover those fees in case you total or get your car stolen? If so how much does the gap cost?
Gap insurance is included with BMW Financial leases. There is a disposition fee of around 350. It is waived if you lease another BMW within 6 months of your lease end.
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  #218  
Old 04-07-2007, 09:31 PM
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I really need everyones help here since I have been away from the BMW scene for over 1 year now. I ordered a 335xi listing for 49,900. If I put a total of $8K down my payment is $648 for 24mo with 25K miles per year for a total of 50K miles. I was given a .03 money factor yet I am seeing a .0275 posted on the forum...Is the .0275 what BMWFS is offering? How can I show my dealer this? Also, how can I ask for the multiple security desposits since I am putting $8K down. The dealer waived the security deposit but added it to the totla of the money factor of .0315. Thanks for you help in advance.
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  #219  
Old 04-07-2007, 10:03 PM
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Quote:
Originally Posted by reactor View Post
I really need everyones help here since I have been away from the BMW scene for over 1 year now. I ordered a 335xi listing for 49,900. If I put a total of $8K down my payment is $648 for 24mo with 25K miles per year for a total of 50K miles. I was given a .03 money factor yet I am seeing a .0275 posted on the forum...Is the .0275 what BMWFS is offering? How can I show my dealer this? Also, how can I ask for the multiple security desposits since I am putting $8K down. The dealer waived the security deposit but added it to the totla of the money factor of .0315. Thanks for you help in advance.
Holy shiznits I'm glad you asked! I bet your ass is happy for you won't be getting screwed now!

Bro DON"T put down the cap cost reduction down payment. Definately do MSD's and DON'T waive the initial SD, put down a total of 8 and that will keep your MF away from the potential .00015 rate adder for waiving it.

Here are the numbers for your 335xi

24 Month Residual 71% of MSRP .00275 Base Rate
36 Month Residual 61% of MSRP .00275 Base Rate

You can buy miles at .15 cents a mile from the outset above 15k or .16 a mile up to 6 months from lease termination. I would do that instead of giving them your money interest free for 18-30 months depending of if you went 2/3 year lease. You pay 1 penny more per mile but you get that money to gain interest till 6 months before lease termination and that will eclipse the 1 penny per mile.

Thus if you are doing 20k extra at the outset you are basically rolling in 3000 of extra mileage to amoritize over the lease so you will pay tax on that. If you wait until 6 months until lease termination it will be 3200 but you get 3000 to invest for 18 months and at 5% interest a year 225 return minimum. Plus if you need the cash you have it. Now you will pay tax on it but if you don't use whatever mileage you purchase you get refunded for hte unused portion as well as the tax paid on it.

You can get the buy rate and do MSD's, but considering your mileage don't lower your mileage allottment to 12k as that isn't for you needless to say.
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  #220  
Old 04-08-2007, 06:16 AM
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Can I do multiple SD in NY State? Also, if I don't put down the large amount of money ----the payment is very high...Is the SD applied in the same way as the $8000 down payment?
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  #221  
Old 04-08-2007, 06:21 AM
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Also, in my case buying the mileage upfront, lowered the residual value....So it is better to buy it at the end?
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  #222  
Old 04-08-2007, 10:19 AM
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Quote:
Originally Posted by reactor View Post
Can I do multiple SD in NY State? Also, if I don't put down the large amount of money ----the payment is very high...Is the SD applied in the same way as the $8000 down payment?
From what I've read it seems as though in the state of NY you can only put down as many deposits that would total up to $749.00. BUT, it seems like there's a loophole where NY residents would be able to lease the car from an out of state dealer and use the multiple security deposits.

check out this thread: http://www.bimmerfest.com/forums/sho...d.php?t=192671

the SD's will not be applied as a down payment, but it will lower your money factor by .00007 for each SD you put down (Max of 7 except for in NY). The SD's do not affect your cap cost, but the money will be returned to you at the end of the lease (after any damages, etc are deducted, I'm sure) in return for a savings on your monthly payment.
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  #223  
Old 04-08-2007, 08:54 PM
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Not worth it?

It doesn't seem that adding the 7 SDs is ultimately that huge of a savings. Here's my breakdown.

335xi sedan via ED, May 2007
US MSRP $48175
ED Invoice $41695
Cap Cost $43770 ($41695 ED invoice + $1250 dealer profit + $825 aquisition fee)

36 months, 15000 miles/year
61% residual
MF 0.00275 + 0.003 ED adder = .00305
5.1% local tax rate

Monthly payments $654.42 (first month due at signing, no money down)

If I pay 7 additional SDs ($654 rounded to $700 each) = $4900

MF reduced by .00007 x 7 = .00049 for final MF of 0.00256

That changes my monthly payment to $616.74/month - a savings of $37.68/month or $1356.48 over the life of the lease.

$1356 out of $4900 investment over 3 year least is a 27.7% return. Sounds pretty good all at once, but that's also 9.22% per year.

Although it's not guaranteed, a good 3 year investment of the same $4900 should yield more than 9.22% per year.

It's a risk - but a risk I think I'll take. I'm skipping the extra SDs and investing the money elsewhere - hoping for a 10% return per year. Most of my retirement investments have been doing this lately.

Anyone see this in a significantly different light? Thanks for your thoughts.
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  #224  
Old 04-08-2007, 09:12 PM
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Quote:
Originally Posted by fszatko View Post
It doesn't seem that adding the 7 SDs is ultimately that huge of a savings. Here's my breakdown.

335xi sedan via ED, May 2007
US MSRP $48175
ED Invoice $41695
Cap Cost $43770 ($41695 ED invoice + $1250 dealer profit + $825 aquisition fee)

36 months, 15000 miles/year
61% residual
MF 0.00275 + 0.003 ED adder = .00305
5.1% local tax rate

Monthly payments $654.42 (first month due at signing, no money down)

If I pay 7 additional SDs ($654 rounded to $700 each) = $4900

MF reduced by .00007 x 7 = .00049 for final MF of 0.00256

That changes my monthly payment to $616.74/month - a savings of $37.68/month or $1356.48 over the life of the lease.

$1356 out of $4900 investment over 3 year least is a 27.7% return. Sounds pretty good all at once, but that's also 9.22% per year.

Although it's not guaranteed, a good 3 year investment of the same $4900 should yield more than 9.22% per year.

It's a risk - but a risk I think I'll take. I'm skipping the extra SDs and investing the money elsewhere - hoping for a 10% return per year. Most of my retirement investments have been doing this lately.

Anyone see this in a significantly different light? Thanks for your thoughts.
If you take the monthly savings from MSD's and invest THAT you will get another 1-2% on your total MSD's return. That is yet another trick to maximizing your return. Thus take that 37 bucks or whatever each month and invest that and rolled over 1 month to the next will give you some gain to help make your decision easier.

MSD's is a no brainer safe tax free investment, enjoy.
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  #225  
Old 04-08-2007, 09:45 PM
BayAreaBMWFan BayAreaBMWFan is offline
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fszatko:
You have to look at your POST-TAX returns.
Assuming your marginal tax rate is at least 30% (state + federal), you need to earn 13% to break even at 9%. Now tell me one investment which is returning 13% backed by the credit quality of BMW and secured by a $50K car? AAA bonds are not yielding more than 6-7% so this is a no brainer investment.
Also MSDs work best with high residual leases (24 month ED leases come to mind). And before you sign up for a 36 month lease, do run the numbers for a 24 month ED lease. They are typically better than 36 month ED numbers. And also put a little bit down in cap costs to get the monthly payment to $649.99 which will get your SD to $650.
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