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      12-02-2010, 10:44 AM   #1
boarderman23
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MSDs - Is This Accurate and Doable?

From some information I came across on the internet, it appears I can save almost $2600 by putting the MSDs down on my 2011 e93 lease, totaling 8 security deposits/$6000.

The MSRP of the vehicle is $80,675 and the current money factor for the lease is 0.00130. Since each security deposit drops the MF by .00007, that would drop the total MF to 0.00074 - essentially lowering my total lease cost almost $2,600 over the 36 months.

I read that MSDs are returned in an event of a totaled vehicle or anything like that. I also read that you get the amount back in full when returning the vehicle as long as there isn't excessive wear (which even if there was and I didn't have any security deposits, I would have to pay for that anyways).

Can anyone confirm that I can in fact do this? Is there anything I am missing? Any input would be greatly appreciated, thanks!
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      12-02-2010, 11:52 AM   #2
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What you said is all true. If you want to lower the monthly payment, MSD is the way to go, because you get it back no matter what, End of lease, car totaled, etc.

Although I did read on another post that the MSD is calculated by nearest $50 increment averaged up. In other words, if your payment is $560, then each MSD is $600. Not sure if that's the case.

By the way. Which dealer did you go to? Are you in metro NYC? I have a hook up at BMY of Tenafly in NJ. PM me if you're interested.

Good luck.
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      12-02-2010, 12:16 PM   #3
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Quote:
Originally Posted by comebackid View Post

Although I did read on another post that the MSD is calculated by nearest $50 increment averaged up. In other words, if your payment is $560, then each MSD is $600. Not sure if that's the case.


Good luck.
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      12-02-2010, 12:52 PM   #4
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Quote:
Originally Posted by comebackid View Post
What you said is all true. If you want to lower the monthly payment, MSD is the way to go, because you get it back no matter what, End of lease, car totaled, etc.

Although I did read on another post that the MSD is calculated by nearest $50 increment averaged up. In other words, if your payment is $560, then each MSD is $600. Not sure if that's the case.

By the way. Which dealer did you go to? Are you in metro NYC? I have a hook up at BMY of Tenafly in NJ. PM me if you're interested.

Good luck.
Thanks, my quote right now has payments of around $790 including tax...so looks like MSDs would be $6400.

Also, PM'd you about dealer info.

Last edited by boarderman23; 12-02-2010 at 12:58 PM.
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      12-02-2010, 01:03 PM   #5
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If putting down the max 8 security deposits and lowering the money factor to .00074, wouldn't that bump the MSD amount down as well? Assuming the decrease in money factor equals a savings of roughly $2,600 or $72 per month (that would bump my payment from 790 to 718, which would then equal a 750 deposit rather than 800). Or are the security deposits based on the original rate?

Sorry, that may not even make sense...
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      12-02-2010, 04:26 PM   #6
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According to my dealer, the maximum amount of security deposits you can give is 7, which would lower the MF by .00049.
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      12-03-2010, 01:12 AM   #7
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+1. Assuming you are qualified previous BMW FS. If not, you are required to put down one deposit that cannot be used for MSD. The remaining six can be used to reduce the money factor by .00042.

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      12-03-2010, 01:22 AM   #8
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Thanks for confirming, that should save a bit of money over the course of the lease.
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      12-03-2010, 05:02 PM   #9
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Quote:
Originally Posted by EuroCarsOnline View Post
+1. Assuming you are qualified previous BMW FS. If not, you are required to put down one deposit that cannot be used for MSD. The remaining six can be used to reduce the money factor by .00042.

Regards,

David
That's not right.

If you're required to put down one security deposit you can still do an additional 7 and get the 49 point rate reduction.
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      12-03-2010, 07:13 PM   #10
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Quote:
Originally Posted by Ty Vil View Post
If you're required to put down one security deposit you can still do an additional 7 and get the 49 point rate reduction.
So if you're not required to put one down, can you use a total of 8 to lower the rate? Or is 7 still the max reduction?
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      12-03-2010, 09:09 PM   #11
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Originally Posted by boarderman23 View Post
So if you're not required to put one down, can you use a total of 8 to lower the rate? Or is 7 still the max reduction?
7 and 49 basis points is the max reduction.
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