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      01-08-2014, 01:43 PM   #1
alexus
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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
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Originally Posted by eekthecat View Post
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).
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, 03:37 PM   #4
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If your dealer is in NYS you cannot do MSD.
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      01-08-2014, 03:39 PM   #5
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Quote:
Originally Posted by alexus View Post
thank you for that information, is there an "official" place where I can see that? so I can forward this to my leasing company.
Those numbers quoted above only apply to BMWFS. Another leasing company may have different parameters.
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      01-08-2014, 03:40 PM   #6
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Originally Posted by hbdunn2003 View Post
If your dealer is in NYS you cannot do MSD.
registration of car is in PA, how come NYS is excluded though?
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      01-08-2014, 03:41 PM   #7
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Originally Posted by Space gray View Post
Those numbers quoted above only apply to BMWFS. Another leasing company may have different parameters.
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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Quote:
Originally Posted by alexus View Post
registration of car is in PA, how come NYS is excluded though?
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
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Quote:
Originally Posted by hbdunn2003 View Post
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.
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, 04:08 PM   #11
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Is the use of leasing companies a regional thing? Never heard of anyone doing that here in CA... have always just dealt with BMW/BMWFS...
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      01-08-2014, 04:19 PM   #12
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Quote:
Originally Posted by eekthecat View Post
Is the use of leasing companies a regional thing? Never heard of anyone doing that here in CA... have always just dealt with BMW/BMWFS...
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:
Originally Posted by LagunaSecaBlue View Post
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.
Thank you for the info!
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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