01-08-2014, 01:43 PM | #1 |
boomshakalaka
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BMW MSD (multi security deposit)
I'm trying to find about BMW MSD (multi security deposit) on BMW's website and I can't really find anything, can someone help me find it there please?
I'm getting 435 and I want to know if I can add MSD later myself or does it have to be done before lease starts? I have MSDs on my current BMW, so I want to see if I can do transfer of some sort and how would it affect my lease payments. thank you in advance.
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01-08-2014, 02:24 PM | #2 |
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You can add up to 7 MSDs at the beginning of your lease -- each one reduces the MF by .00007 (so up to a max reduction of .00049). Be sure that they calculate your security deposits taking into account the MSDs (rounding up to the nearest $50).
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01-08-2014, 03:17 PM | #3 |
boomshakalaka
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thank you for that information, is there an "official" place where I can see that? so I can forward this to my leasing company.
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01-08-2014, 03:39 PM | #5 |
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01-08-2014, 03:40 PM | #6 |
boomshakalaka
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registration of car is in PA, how come NYS is excluded though?
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01-08-2014, 03:41 PM | #7 |
boomshakalaka
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so do you think I can call BMWFS and do it directly with them?
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01-08-2014, 03:41 PM | #8 |
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Some manufacturers will allow you to pay multiple security deposits to buy down the interest rate on your lease. Most leases will require you to pay a security deposit at inception. If a MSD program is available, you pay more than one security deposit. Each additional security deposit will lower your interest rate by a certain amount. That lower interest rate will result in a lower monthly payment. You can calculate an implied rate of return by comparing the monthly savings against the initial "capital outlay" (the additional security deposits). For example, if you pay 6 security deposits at $600 each ($3600 capital outlay), and your new monthly payment is lower by $30 per month compared to your original payment without the 6 MSD, your yearly savings is $360. Applied against the initial capital outlay of $3600, your implied rate of return based on the yearly savings of $360 is 10% - TAX FREE and GUARENTEED. At the end of the lease, you get your $3600 back.
BMW program allows 7 MSD, each one reducing the money factor by 7 basis points. If you are in the market to lease a car, this is something that's worth looking into, as the dealer probably won't tell you about this. You just need to ask your SA/CA. |
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01-08-2014, 03:51 PM | #9 |
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NYS law limits the total security deposit on any lease to $750.
Doesn't matter where the registration is matters where the lease is executed. Myself using NJ dealer reg in NY able to do MSD's.
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01-08-2014, 04:06 PM | #10 |
boomshakalaka
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my leasing company is NY/NJ, I can ask them to do it from NJ branch instead of NY if that helps somehow...
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01-08-2014, 04:19 PM | #12 |
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I doubt it, but possible) I tried going to dealer first, but the price difference is too great for me to stay w/ dealer, that's why I'm going w/ a leasing company... at the end of the day leasing company acts as a dealer when they order car for you, there is really no big difference there (other than price)
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03-08-2014, 12:07 PM | #13 | |
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Quote:
This is a totally new concept to me and something that I've never heard of before. I've leased 4 different BMWs in the last 3 years, is this not something that the dealers usually inform customers of?
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