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  #1  
Old 04-07-2017, 10:37 AM
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tim330i tim330i is offline
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Official - BMW Multiple Security Deposit Program Discontinued

BMW Multiple Security Deposit Program Discontinued

Today we got official confirmation that BMW Financial Services is discontinuing the Multiple Security Deposit (MSD) Program for leased vehicles. You can still use MSD on any credit approvals dated May 1, 2017 or prior so if you're thinking about a BMW lease with MSD starting taking to a Bimmerfest sponsor dealer now.

To take advantage of the MSD program before it ends you must use a BMW program from April or prior months to take advantage of the MSD discount. If you wish to use May or later programs no discount will be applied unfortunately.

The Security Deposit Policy and Security Deposit Waiver program will remain unchanged. Multiple Security Deposits as a stipulation of credit will remain but without a money factor discount.

Coming on the heals of cuts to the No Cost Maintenance Program and a reduction in the European Delivery program discount it will be interesting to see how BMW sales end up at the end of 2017.

What are Multiple Security Deposits?
BMW Financial Services allowed customers leasing a new BMW to lower the money factor (interest rate) on the lease if they made a series of fully refundable security deposits up front. A money factor reduction of .00007 was available for each deposit, maxing out a seven. For buyers with liquid assets (cash) available to be put down as a MSD there is a savings over the term of the lease. MSD have been a popular leasing tool for those in the know on Bimmerfest.

BMW MSD vs Competitors
Bimmerfest member eazy created a chart comparing BMW's MSD program to competitors. This gives you a sense of how MSDs are viewed by automakers.

bmw msd vs competitors

Last edited by tim330i; 04-10-2017 at 08:58 AM.
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  #2  
Old 04-07-2017, 10:50 AM
Motorboat411 Motorboat411 is offline
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Not trying to hijack this thread but over the last 3 years, I've convinced and helped 5 of my friends lease BMWs (first time), but it seems like BMW is hell bent on losing sales

- Made Euro Delivery more expensive than US. (especially since pretty much no incentive applies to ED anymore)
- Cut out the Maintenance Program
- Now cancelled MSD - a single factor that made bmw leases more attractive to people, that otherwise would have settled for a Japanese/American car.

It'll be interesting to see BMW sales figures this year.
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  #3  
Old 04-07-2017, 10:55 AM
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Wow, sad to hear. Thanks for the confirmation!
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  #4  
Old 04-07-2017, 10:59 AM
VitaminHan VitaminHan is offline
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A few days ago I saw another thread about the MSD rumor I thought that was an April fool's joke...
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  #5  
Old 04-07-2017, 11:00 AM
Motorboat411 Motorboat411 is offline
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Originally Posted by VitaminHan View Post
A few days ago I saw another thread about the MSD rumor I thought that was an April fool's joke...
Maybe someone forwarded the April fool's joke to BMWFS and they took it literally.
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  #6  
Old 04-07-2017, 11:03 AM
MJBrown62 MJBrown62 is offline
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Well, there are a few CAs out there that took abuse from some of us who discounted their knowledge of this change.

Kudos to them.

Tough times for BMW leasing.

mjb
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  #7  
Old 04-07-2017, 11:08 AM
AksNasZasNas AksNasZasNas is offline
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Originally Posted by MJBrown62 View Post
Well, there are a few CAs out there that took abuse from some of us who discounted their knowledge of this change.



Kudos to them.



Tough times for BMW leasing.



mjb


No worries. Such is the Internet. We are all trying to help each other with good deals and reward the good CAs. Thanks Mike.
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  #8  
Old 04-07-2017, 11:12 AM
MJBrown62 MJBrown62 is offline
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No worries. Such is the Internet. We are all trying to help each other with good deals and reward the good CAs. Thanks Mike.
And by us I meant other CAs like me!
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  #9  
Old 04-07-2017, 11:16 AM
Motorboat411 Motorboat411 is offline
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And by us I meant other CAs like me!
I wonder what CAs think about the impact of No MSDs on BMW sales?

Personally, I think because of increased sales in Asia (specifically China), BMW will start treating BMWNA market more like they treat European i.e. limited incentives, reduced maintenance, decrease in ED benefits etc...which is inline with European markets.
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  #10  
Old 04-07-2017, 11:17 AM
AksNasZasNas AksNasZasNas is offline
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Originally Posted by Motorboat411 View Post
Maybe someone forwarded the April fool's joke to BMWFS and they took it literally.


Fwiw, My intel (and post) predated April 1 and I had never seen the April Fool's MSDs thread before my post. I wonder if bmw waited to May 2 so ppl wouldn't think it was an April Fools joke.
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  #11  
Old 04-07-2017, 11:23 AM
VitaminHan VitaminHan is offline
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Lucky I still get to keep the March term and MSD, hope BMW will realize the mistake and reinstate the MSD program in 3 years when my lease is up.

Or maybe in 3 years everyone will drive a $25000 Tesla model a (stands for affordable) and no need to worry about BMW anymore
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  #12  
Old 04-07-2017, 11:38 AM
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It's no longer a joke BMW FS has officially discontinued the Multiple Security Deposit Program - https://www.bimmerfest.com/forums/sho...d.php?t=972966
A sad day indeed!
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  #13  
Old 04-07-2017, 11:41 AM
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  #14  
Old 04-07-2017, 11:43 AM
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Quote:
Originally Posted by MJBrown62 View Post
Well, there are a few CAs out there that took abuse from some of us who discounted their knowledge of this change.

Kudos to them.

Tough times for BMW leasing.

mjb
I had no idea it was coming. At least this is one less thing to fret about for sales managers in calculating leases. I'll bet the reason why it was discontinued was too many errors and charge backs in miscalculating buy rate and MSD amounts. Dealer's probably said enough is enough.
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Old 04-07-2017, 11:45 AM
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Originally Posted by VitaminHan View Post
Lucky I still get to keep the March term and MSD, hope BMW will realize the mistake and reinstate the MSD program in 3 years when my lease is up.

Or maybe in 3 years everyone will drive a $25000 Tesla model a (stands for affordable) and no need to worry about BMW anymore
Is it really going to make that much of a difference to you? Wow. I can picture the objection now. "Ehhh, I don't want a BMW because I can't do MSD's. " *sniff*

Because I don't really keep up with other manufacturer's finance programs, does Tesla offer MSD's? Who else offered it? Let me guess- BMW was the only brand.

RIP MSD's. Epitaph will read: "I saved some savvy BMW clients a few bucks a month on their money factor and gave them their money back at lease end. Yay!"
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Last edited by adrian's bmw; 04-07-2017 at 11:49 AM.
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  #16  
Old 04-07-2017, 11:57 AM
ED_2007 ED_2007 is offline
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It's more of a combination of all 3 as someone mentioned above. ED discount, MSD's, maintenance including brakes/wipers etc for 50k miles. Before all these changes we never blinked and just ordered our next BMW. For the first time in 20 years we are now exploring other car brands. Maybe we still end up in another BMW, it's just not a given as it was before. Change is good, right

Last edited by ED_2007; 04-07-2017 at 12:00 PM.
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  #17  
Old 04-07-2017, 11:58 AM
Robert A Robert A is offline
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I never understood why a manufacturer would discount the interest rate to an otherwise credit-worthy customer. In any event, they still have to respond to market forces, and that discount will probably resurface in some other form.

Who knows, maybe we'll just go back to buying our cars like we used to!
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Old 04-07-2017, 12:03 PM
VitaminHan VitaminHan is offline
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Originally Posted by adrian's bmw View Post
Is it really going to make that much of a difference to you? Wow. I can picture the objection now. "Ehhh, I don't want a BMW because I can't do MSD's. " *sniff*

Because I don't really keep up with other manufacturer's finance programs, does Tesla offer MSD's? Who else offered it? Let me guess- BMW was the only brand.

RIP MSD's. Epitaph will read: "I saved some savvy BMW clients a few bucks a month on their money factor and gave them their money back at lease end. Yay!"
lol... not saying that I will go Tesla when my lease is up, or the MSD itself is a deal breaker... I may still get another BMW in 3 years, but I can imagine that I will be paying a lot more than what I pay now for the same car if BMW keeps going this direction.
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Old 04-07-2017, 12:05 PM
DBV DBV is offline
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Mercedes recently started doing it and they allow up to 10. All I know is BMW is becoming less and less competitive in the US market in a more competitive market. Too bad, as they don't seem to really care based on there sedan sales.


Quote:
Originally Posted by adrian's bmw View Post
Is it really going to make that much of a difference to you? Wow. I can picture the objection now. "Ehhh, I don't want a BMW because I can't do MSD's. " *sniff*

Because I don't really keep up with other manufacturer's finance programs, does Tesla offer MSD's? Who else offered it? Let me guess- BMW was the only brand.

RIP MSD's. Epitaph will read: "I saved some savvy BMW clients a few bucks a month on their money factor and gave them their money back at lease end. Yay!"

Last edited by DBV; 04-07-2017 at 12:07 PM.
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Old 04-07-2017, 12:10 PM
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Mercedes recently started doing it and they allow up to 10. All I know is BMW is becoming less and less competitive in the US market in a more competitive market. Too bad, as they don't seem to really care based on there sedan sales.
Good to know. Thanks.

Less competitive, huh?

BMW Tops Mercedes for First Time in 2017, Narrowing the U.S. Luxury Race

The sedan market altogether is suffering across most brands.
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Last edited by adrian's bmw; 04-07-2017 at 12:13 PM.
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Old 04-07-2017, 12:27 PM
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Originally Posted by adrian's bmw View Post
Is it really going to make that much of a difference to you? Wow. I can picture the objection now. "Ehhh, I don't want a BMW because I can't do MSD's. " *sniff*

Because I don't really keep up with other manufacturer's finance programs, does Tesla offer MSD's? Who else offered it? Let me guess- BMW was the only brand.

RIP MSD's. Epitaph will read: "I saved some savvy BMW clients a few bucks a month on their money factor and gave them their money back at lease end. Yay!"
It is interesting reading your reply compared to Mike's. One of you obviously has some sort of class and empathy for those that provide you with a paycheck. It really is amazing how condescending you consistently act towards consumers who want to save money, which is ironic because the reason you are condescending is because you want to make money (you have to see the irony in that right??)
Even though I'm in the south east I would never buy a car from you, I'm sure you act nice and respectful in person, but on this forum you really have come off as an arrogant jerk to anyone who questions BMW's policies. You might be right, they may lose no sales from this, but why is your opinion more valid than consumers who think they will lose sales from this?
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  #22  
Old 04-07-2017, 12:28 PM
Der_Kommissar Der_Kommissar is offline
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Unbelievable. If they don't find a way to reduce MSRP or increase content/value, BMW is going to loose a lot of current customers. But I expect they know that. Plus, don't forget the effect this will have on the CPO market. If Acura ever figures out how to make their cars fun again, this may well be my last BMW. I almost got into a lease the last time, but the thing that held me back was thinking that the terms would not be as good for the next lease. I was right.
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Old 04-07-2017, 12:44 PM
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He definitely doesnt need me defending him but Adrian has been around here for at least the 10 years since I've joined. I've seen a lot of CA's come and go around here. We are lucky to have them. Adrian contributes greatly to the forum and maybe he's just defending the brand he's been working at for years. Maybe being from the NE I have tougher skin but I found nothing objectionable about his post.

Quote:
Originally Posted by border9 View Post
It is interesting reading your reply compared to Mike's. One of you obviously has some sort of class and empathy for those that provide you with a paycheck. It really is amazing how condescending you consistently act towards consumers who want to save money, which is ironic because the reason you are condescending is because you want to make money (you have to see the irony in that right??)
Even though I'm in the south east I would never buy a car from you, I'm sure you act nice and respectful in person, but on this forum you really have come off as an arrogant jerk to anyone who questions BMW's policies. You might be right, they may lose no sales from this, but why is your opinion more valid than consumers who think they will lose sales from this?

Last edited by ED_2007; 04-07-2017 at 12:45 PM.
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  #24  
Old 04-07-2017, 12:56 PM
Robert A Robert A is offline
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IMO, it's unbelievable they offered it at all. It was a gift to those who had knowledge of the program. I suspect the vast majority of consumers have no idea of MSDs and will never know it went away.

Quote:
Originally Posted by Der_Kommissar View Post
Unbelievable. If they don't find a way to reduce MSRP or increase content/value, BMW is going to loose a lot of current customers. But I expect they know that. Plus, don't forget the effect this will have on the CPO market. If Acura ever figures out how to make their cars fun again, this may well be my last BMW. I almost got into a lease the last time, but the thing that held me back was thinking that the terms would not be as good for the next lease. I was right.
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Old 04-07-2017, 01:12 PM
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It was always a differentiator for me. I was a BMW guy for a number of years, but moved to Audi for about a decade. Came back to BMW because 1) I really love their products, and 2) incredible value with the leasing program. A $43k A4 leased for ~$525 back in '05. My on-order, $64k 340xi will come in at about $50/mo more that that A4 - same 36/10 lease terms. If cost is the same across manufacturers, then I will definitely consider other options in 3 years. Leasing a BMW has always been a no-brainer. Now?
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