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Discussion Starter #1
Is putting multiple security deposits down on a lease
a good idea?

How mush does BMW financial services charge for
"lease aquisition fee"?
 

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It is not a good idea. I am not sure of the acquision fees.

One thing I would recommend is you look in to "owners choice."

It does not have security deposits, nor acquision fees, and it is cheaper on a per month basis. Also, you only pay sales tax one time not twice as it is in leasing.
 

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It depeds. The more security deposits that you put down it affects the money factor slightly. I don't remember the math. Joh Shafer would be able to answer this for you. It depend on whether is is worth you tying up a couple thousand just to lower you interest rate a little. If you have a decent rate to begin with, I wouldn't see much benefit in doing this.

Lease aquisition fee is around 675 and is non-negotiable.
 

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Ben Chou said:
It depeds. The more security deposits that you put down it affects the money factor slightly. I don't remember the math. Joh Shafer would be able to answer this for you.
You get a rent factor reduction of .0001 for each additional
refundable security deposit that you put down up to a
maximum of 9; you can save up to .009 or 2.16% APR
by doing so... If you have the ca$h, it may just pencil
out for you. Some of our brightest clients choose this
option. Still others scoff at the notion of handing a
leasing company all of that cash. If you construe it
as an "investment", by analyzing the savings,
and then factoring into it that you get the money
back, and then compare to if you had simply
invested the funds, you might want to consider
the MSD option...

:dunno:
 

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FlyingToaster said:
One thing I would recommend is you look in to "owners choice."

It does not have security deposits, nor acquision fees, and it is cheaper on a per month basis. Also, you only pay sales tax one time not twice as it is in leasing.

Owner Choice still has a security deposit. Actually you don't get the security deposit back like a regular lease and the residual numbers are different. But the sales tax thing is true.
 

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Jon Shafer said:
You get a rent factor reduction of .0001 for each additional
refundable security deposit that you put down up to a
maximum of 9; you can save up to .009 or 2.16% APR
by doing so... SNIP
Jon,
You mention above that the maximum number of deposits allowed is 9. Forgive the simple follow up question... How much (max) can a person put down for each deposit?

Many thanks for your continued service to us! :thumbup:
 

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GimpyMcFarlan said:


You mention above that the maximum number of deposits allowed is 9. Forgive the simple follow up question...
How much (max) can a person put down for each deposit?

Each security deposit is calculated as the base monthly
payment rounded up to the nearest $50 increment.

Some accountants and other "money people" swear by
the MSD program...
 
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