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Is it true, when it comes to leasing, putting a down payment would not be the best option since it would not impact the lease end purchase price that much? I heard the best option is to put the money towards additional deposit

I heard that by doing this way would reduce my lease payment. Additionaly, I would get the deposit money back. Would someone please explain me more about this??:confused:
 

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The lease end purchase price, called the residual is fixed by the leasing company.
Your monthly payments are affected by what you put up initially.

Money down, traditionally implies capitalized cost reduction, which reduces the amount which is borrowed by the leasee. It is like putting a down payment for a car. It is a big no-no since you lose it if the car is totalled or stolen.

Multiple Security Deposits (MSD) can be used to reduce the money factor (interest rate) which reduces the monthly payment. It has been shown that the ROI on the money put in the MSD is > 10% post tax for most people.

Before you go any further you should understand how the leasing process works be reading the sticky posts here and in the ED forum.
 

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BayAreaBMWFan said:
Multiple Security Deposits (MSD) can be used to reduce the money factor (interest rate) which reduces the monthly payment. It has been shown that the ROI on the money put in the MSD is > 10% post tax for most people.
I believe that the ROI for the MSD program is 100% tax-free "earnings" for everyone.
 
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