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      01-29-2013, 05:18 PM   #45

Drives: 2018 Audi S4 Prestige
Join Date: Apr 2012
Location: NorthEast

iTrader: (0)

Originally Posted by zeeman335 View Post
Thanks guy. and Congrats to you too Dkhan23. Can't wait to get myself into a m3!

MSD seems the way to go to bring down the monthly payments. The only question I have is that is there any way BMW can take away the security deposit or do they HAVE to give it back? They can use that cash to pay off any damages, excess miles, etc at the end of the lease, correct?

So what the dealership told me is that I need to pay about 4 security deposits of $850 dollars each to bring down the monthly payments by $50.

Also, does the MSD effect the buyout value of the car at all? Since I am paying lower monthly payments, I am paying less on the car, so wouldnt the buyout value go up?

Just like a standard security deposit, the additional can be used to offset damage, excess miles, etc. Otherwise you'll get your money back.

The payoff will not change as it is based on the residual value (currently 62% @ 10k/36 month). However the MSD's can be used as partial payment toward the payoff.

Something to consider if using MSD's, it is a good method to lowering the money factor. But if you opt to transfer the lease, you would need to reconcile this with the new leasee. That is unless you plan on giving up all of your MSD's.

For the quantity, max MSD's is 8 (1 required plus 7 optional). Each optional reduces the m.f. by .00007. All would be required to reduce the payment by (roughly) $50.