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Discussion Starter · #1 ·
Hi Everyone,

I'm taking the time to de-lurk so that I can ask a question. I've ordered a 2007 E90 335i and am trying to find out more information about the MSD program. I've searched the forum and read the discussion regarding MSD and understand it is supposed to be a BMWFS program. However, I emailed BMWFS and received the following email (I've deleted all references to my name). Can someone clarify whether the dealer controls whether I can utilize MSDs?

Here is the email and below that my initial message to BMWFS:

Thank you for your reply. We would be happy to clarify.

BMW Financial Services is a captive finance company. Due to the regulations that govern captive finance companies, we can only offer financing to our BMW Centers for vehicles in their inventory. We are prohibited from directly discussing finance options. Such discussions come through the BMW centers, and then we purchase the signed contracts from the dealer. We would recommend contacting your local BMW center regarding the multiple security deposit program, as well as any other programs or promotions that may be available to you at this time.

We appreciate your interest in BMW Financial Services, and we hope this clarification has been helpful in explaining the role and limitations of a captive finance company. If you have any further questions, please respond to this e-mail or contact the Customer Service Department at 1-800-578-5000, Monday through Friday from 9:00 A.M. to 9:00 P.M., Eastern Standard Time.

Sincerely,

Steven Sirk
Customer Service Specialist

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-----Original Message-----

From:
Sent: 8/1/2006 12:00:00 AM
To: <[email protected]>
Subject:

Thank you for the reply. I have a question regarding the Multiple Security Deposit program, which I understand is a BMW Financial Services program whereby I would be able to put down up to seven additional security deposits down, reducing the money factor by 0.00007 per additional deposit. Do you have a bulletin or literature which you can send me describing this program?
 

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No, they spelled out the problem clearly in the email:

We are prohibited from directly discussing finance options.
They simply can not talk to you about how the leasing/MSD works due to regulations. I have the same problem in my industry (insurance) when dealing with disclosure of certain information.
 

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And what is the logic behind such laws?
I think it is BS, just designed to limit information and give the dealer more leverage.
 

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Why the big worry? What else do you need to know? There is a maximum of 7 SD's on any one deal for a max reduction of .00049. Now, armed appropriately...go work your best deal.

I can assure you that most of the details you see on this forum are accurate.

Now the opinions and stories on this board....well....that's another story entirely!!! Caveat read-tor (sic)!!! ;-)
 

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Whatever the reason BMWFS has, it sure appears that it is fully at the dealer's discretion how to handle MSDs...but obviously there are guidelines that BMWFS provides to its dealers.

Ultimately, it comes down to finding a dealer willing to play ball.
 

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SignHere said:
Why the big worry? What else do you need to know? There is a maximum of 7 SD's on any one deal for a max reduction of .00049.
My CA told me that you can only do 5 MSD's. Is he full of BS and can I call him on it?
 

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Discussion Starter · #7 ·
MSD? CA says "Never heard of it"

Thanks for all the replies. The reason for my initial email to BMWFS was when I spoke to my CA about the MSD program, he says he has never heard of it. He was supposed to "check with his manager to see if he has heard of it", and I'm following up with the CA to see if he actually did so. I guess then if the dealership says they don't participate in the MSD program, and BMWFS can't talk about it, I'm SOL. :(
 

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firehire said:
My CA told me that you can only do 5 MSD's. Is he full of BS and can I call him on it?
You are dealing with a well-regarded dealer so I'd just have to trust them. 5 isn't too bad and still worth it--at least they are willing to do them and are familiar with the program unlike some other dealers....
 

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My experience

I just leased a 325i (36 month 12k) in FL on Friday. I was able to put all 7 down with no problem. They also gave me the base money factor of .0025 before the msd. I just gave them $1000 over invoice for the car. I had dealt with two other dealers before them and had no such luck. Keep calling around someone will eventually get you what you want.
 

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Ågent99 said:
You are dealing with a well-regarded dealer so I'd just have to trust them. 5 isn't too bad and still worth it....
I would say a retarded dealer. If a dealer told me I could not do the MSD's I would be out the door and wouldn't waste my time reasoning with them again. All you have to do is say "I am going to put 7 SD's on the lease" and that is (should be) the end of it, if not then move on. :thumbup:
 

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1) BMWFS can't discuss money factors, because then they would have to disclose that the dealer can earn extra profit on your deal, by bumping up the MF... It has nothing to do with regulations.

2) The salesperson that says only 5 extra deposits allowed? He is behind the curve.. If he would check with his finance manager, he would know that the new plan allows 7. If that information is from the finance manager, then he is a pinhead.

3) The only exception would be if the extra MSDs would take the money factor down below .0005...
 

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You catch more flys with honey than you do vinegar. If you are looking to benefit from this information, then suggest that perhaps the finance department might not have informed the salesperson adequately and see if the finance manager can answer your questions regarding the MSD program. There is really no reason for them NOT to do so except for fear of making their ingnorance of the program known to one and all.
 

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Discussion Starter · #13 ·
I heard back from my CA yesterday. He checked with his finance person who said they can do MSD with 5 additional security deposits with a reduction of .00005 per. I emailed the CA back saying BMWFS changed the MSD to 7 additional deposits at .00007 per back in February. He replied saying once lease rates for the 2007 E90 come out he'll check again. Probably doesn't like me being a [email protected] know-it-all (thanks to Bimmerfest!)
 

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kyfdx said:
1) BMWFS can't discuss money factors, because then they would have to disclose that the dealer can earn extra profit on your deal, by bumping up the MF... It has nothing to do with regulations.

2) The salesperson that says only 5 extra deposits allowed? He is behind the curve.. If he would check with his finance manager, he would know that the new plan allows 7. If that information is from the finance manager, then he is a pinhead.

3) The only exception would be if the extra MSDs would take the money factor down below .0005...
The minimum MF is .00005, I'm paying .00021. I suspect this minimum is because someone programmed the computer with this limitation.;)
 

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More than likely it has to do with the cost of the 'free' GAP insurance they have to include.
 
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