02-05-2014, 07:43 PM | #1 |
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Multiple Security Deposits + Calculator
Found this article and thought it may be of interest to those who plan on leasing like myself. I don't think I'll be using MSDs since I plan on putting a down payment of more than $5K anyways thanks to Gap insurance being provided on leases (I want really low monthly payments)
MSDs explained: http://www.bmwconfig.com/post/2011/0...nvestment.aspx Excel Calculator: http://f80.bimmerpost.com/forums/att...4&d=1391667449
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Last edited by Powaup; 03-03-2014 at 11:55 AM.. |
02-05-2014, 08:39 PM | #3 |
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MSD's actually give you a higher rate of return than most investments, assuming that you are going to lease the car either way. It is NOT cap cost reduction.
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02-05-2014, 09:33 PM | #5 |
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02-05-2014, 11:22 PM | #6 |
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Risk free investments yes
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02-05-2014, 11:29 PM | #7 | |
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too bad there is a limit on MSDs
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02-06-2014, 12:18 AM | #8 |
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Found this calculator to calculate out your monthly payment with/without MSDs.
Source: http://www.bimmerfest.com/forums/sho...d.php?t=261668 |
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02-06-2014, 12:20 AM | #9 |
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Is MSD really risk free?
What if you're in an car accident or damaged the car? Will BMW take away the MSD you put down?
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02-06-2014, 07:57 AM | #10 |
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02-06-2014, 10:48 AM | #11 |
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02-07-2014, 02:48 PM | #12 |
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That is correct. MSD basically reduce your money factor down. You get all the money back at the end of the lease. Assume that what you are doing is "investing" by reducing your money factor. any reduction to your money factor is money not coming out of your pocket, but you must put down a security deposit to do so. It will tie up your money. If you are gaining less than about 4% on your investments currently than its probably worth it. As always make sure to consult with your Client Advisor before making a decision on your lease.
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02-07-2014, 03:20 PM | #13 |
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What if you bought the car out would you get it back? Or lets say I got an offer on the car for the buyout amount of the lease after say 5 months would I get that back?
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02-07-2014, 04:21 PM | #14 |
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02-07-2014, 06:54 PM | #16 | |
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02-08-2014, 01:21 PM | #17 |
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I just had a friend sell his m3 9 months into his lease and made 1000 dollars selling it for the buyout price to a local bmw dealer. So are you saying if he put 5k in security deposit down he wouldn't receive that 5,000 back until the end of the original lease agreement regardless that the car was paid off, and no longer in his possession?
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02-08-2014, 02:32 PM | #18 | |
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02-08-2014, 02:34 PM | #19 | |
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Appreciate the clarification. |
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02-19-2014, 05:33 PM | #20 | |
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02-19-2014, 05:55 PM | #21 |
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Here is my build,
Base Price Euro Deliver Munich Pick Up $59,755 300 Alpine White LKDA Sakhir Orange/Black Extended Merino Leather $950 2MK M Double-clutch Transmission with Drivelogic $2,900 688 Harman Kardon surround sound system $875 Destination & Handling $925 Total: $65,405 If I add ZEC Executive Package $4,000 it will come out to be $69,405. But $4000 for comfort access and rear view camera I don't know. either leasing it or buying it putting around $5000 will get me payments lower than $800? |
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02-19-2014, 05:59 PM | #22 |
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Why use MSD's at all? I've leased the large majority of my cars and I've never used MSD's, and rarely have I ever put any money down (..and when I did, it wasn't more than $2k).
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