Quote:
Originally Posted by aoysgelt
For Multiple Securities Deposit - do you get rate reduction off nominal money factor 0.00129 bmw offers now or off some other rate? Dealer tells me it is off some yet higher rate - so it ends up not making sense to me. Any comments? Thank you
|
It is subtracted from the base money factor. For the month of April the base rate is .00129. Each MSD reduces the base rate by .00007. The maximum amount allowed is 7 (MSD's) or .00049.
The base rate could be higher for two reasons. If the applicant dosen't qualify for tier 1 (675 or higher for auto enhanced) and/or the dealer is marking up the rate. The latter is commonly done to generate back-end profit.