MSDs

boarderman23 · 12-02-2010, 09:44 AM

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!

comebackid · 12-02-2010, 10:52 AM

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.

geneatals · 12-02-2010, 11:16 AM

Quote:

Originally Posted by comebackid

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.

correct...

boarderman23 · 12-02-2010, 11:52 AM

Quote:

Originally Posted by comebackid

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.

boarderman23 · 12-02-2010, 12:03 PM

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...

bmwboi · 12-02-2010, 03:26 PM

According to my dealer, the maximum amount of security deposits you can give is 7, which would lower the MF by .00049.

EuroCarsOnline · 12-03-2010, 12:12 AM

+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

boarderman23 · 12-03-2010, 12:22 AM

Thanks for confirming, that should save a bit of money over the course of the lease.

Ty Vil · 12-03-2010, 04:02 PM

Quote:

Originally Posted by EuroCarsOnline

+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.

boarderman23 · 12-03-2010, 06:13 PM

Quote:

Originally Posted by Ty Vil

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?

Ty Vil · 12-03-2010, 08:09 PM

Quote:

Originally Posted by boarderman23

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.

12-02-2010, 09:44 AM	#1
boarderman23 Private 11 Rep 75 Posts Drives: 2011 e93 M3 Join Date: Nov 2010 Location: NY iTrader: (0)	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, 10:52 AM	#2
comebackid Lieutenant 290 Rep 515 Posts Drives: 2023 M4 Competiton, 2021 X7 Join Date: Nov 2006 Location: Northern New Jersey iTrader: (0)	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, 12:03 PM	#5
boarderman23 Private 11 Rep 75 Posts Drives: 2011 e93 M3 Join Date: Nov 2010 Location: NY iTrader: (0)	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, 03:26 PM	#6
bmwboi Private 6 Rep 76 Posts Drives: X5 Join Date: Apr 2008 Location: My Garage iTrader: (0)	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, 12:12 AM	#7
EuroCarsOnline 23 Rep 253 Posts Drives: BMW Individual M3 Sedan Join Date: Nov 2010 Location: Northwest BMW iTrader: (0)	+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 __________________ Ultimate Buying Power BMWDavid@me.com www.bmweco.com 202-262-2900 Call Joy for Vehicle Status 443-883-6925
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12-03-2010, 12:22 AM	#8
boarderman23 Private 11 Rep 75 Posts Drives: 2011 e93 M3 Join Date: Nov 2010 Location: NY iTrader: (0)	Thanks for confirming, that should save a bit of money over the course of the lease.
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