Is Lease MSD program renewable if you have existing MSD’s with BMW?

[1M4]

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I read that if you have deposits with BMW already that you are able to Grandfather them in.It said something along the lines of only being in certain regions?Also said its money factor discount was slightly less.Can anyone verify this?Sounds like it’s not true but maybe in certain states it still applies.

[MKParris]

My dealer just told me this and I didn't believe them...

[1M4]

Originally Posted by MKParris

My dealer just told me this and I didn't believe them...

Did it seem to be common knowledge or was he speculating?

[YellowF80]

I got this information from one dealer as well. Mentioned that you can apply only 5 MSDs if you already have them on one lease if you roll them to the new lease.

Can someone please confirm this?

[1M4]

[QUOTE=YellowF80;22898597]I got this information from one dealer as well. Mentioned that you can apply only 5 MSDs if you already have them on one lease if you roll them to the new lease.

Can someone please confirm this?[/QUOT
.00005 instead of .00007. That could be due to a lower overall effect of the 7 msd which would really be bad.Maybe you are on to something and they reduced it to a max of 5msd’s hence the .00005 instead of .00007.This can all be hypothetical considering I have not heard it from a source I know .Also it can be regional and may be subject to certain vehicles.
Just like the pull ahead is not available if you lease an M car. I really hope they change that in the future.

[ben1233]

I presently lease an F82 and I ordered a replacement F80 in January. It will be here likely later on this month.

When I was in the process of negotiating, my dealer phoned his financial services rep and they granted me the option to roll my existing MSDs into the new lease.

He did not mention anything about only being able to roll 5 over, so I may find that out later, who knows. If I do want to stick with the max 7, I would need to kick in extra bucks since the MSDs on the new car will be more expensive. If I can't kick in the extra bucks, then I'll likely be stuck with 5 anyway.

Hope this (recent) experience helps!

[jgoldsmith729]

Hi,

Are there any updates here regarding rolling your current MSD's in a lease into a new one?

Thanks!

[Nikolas]

Originally Posted by jgoldsmith729

Hi,

Are there any updates here regarding rolling your current MSD's in a lease into a new one?

Thanks!

It's true. If you already have them you can apply them to your next lease, although I think the buy down rate is reduced slightly.

[jsublime]

Originally Posted by Nikolas

It's true. If you already have them you can apply them to your next lease, although I think the buy down rate is reduced slightly.

If the buy down rate is reduced does it make financial sense anymore? With rising short term rates, you may be better off finding a good 36 mo CD (or even 18mo repeated) if you want zero risk similar to what MSDs provide.

[trey100]

This is annoying. With the M3 production ending and my current lease ending a year from now, I can't roll over. The MSDs were easy money.

[1M4]

[QUOTE=ben1233;22899143]I presently lease an F82 and I ordered a replacement F80 in January. It will be here likely later on this month.

When I was in the process of negotiating, my dealer phoned his financial services rep and they granted me the option to roll my existing MSDs into the new lease.

He did not mention anything about only being able to roll 5 over, so I may find that out later, who knows. If I do want to stick with the max 7, I would need to kick in extra bucks since the MSDs on the new car will be more expensive. If I can't kick in the extra bucks, then I'll likely be stuck with 5 anyway.

Hope this (recent) experience helps![/QUOTE
Having 5 msd will buy down the rate but was it the same amount as last time with 5 msd’s? Maybe even with 7 they might be lowering the amount of discount so customers become less interested as mentioned before.
Mercedes,Lexus, and I believe Infiniti also do MSD. MB will let you go up to 10 but they say something like you can’t if the rate is already reduced like on a lease special .Also not sure what the effect is of 10 compared to Bmw 7 Msd’s.

[ben1233]

[QUOTE=1M4;22996526]

Originally Posted by ben1233

I presently lease an F82 and I ordered a replacement F80 in January. It will be here likely later on this month.

When I was in the process of negotiating, my dealer phoned his financial services rep and they granted me the option to roll my existing MSDs into the new lease.

He did not mention anything about only being able to roll 5 over, so I may find that out later, who knows. If I do want to stick with the max 7, I would need to kick in extra bucks since the MSDs on the new car will be more expensive. If I can't kick in the extra bucks, then I'll likely be stuck with 5 anyway.

Hope this (recent) experience helps![/QUOTE
Having 5 msd will buy down the rate but was it the same amount as last time with 5 msdÂ’s? Maybe even with 7 they might be lowering the amount of discount so customers become less interested as mentioned before.
Mercedes,Lexus, and I believe Infiniti also do MSD. MB will let you go up to 10 but they say something like you canÂ’t if the rate is already reduced like on a lease special .Also not sure what the effect is of 10 compared to Bmw 7 MsdÂ’s.

I agree with what you stated and would add that 5 MSDs today != 5 MSDs in 2015.
By the looks of it, the reduction used to be .00007 per and now its .00005. My dealer has not yet volunteered this information but with the help of the BMW lease spreadsheet I think I've reverse engineered it and indeed the buy down rate is less under this rollover program.

I'll be on the lookout for it when I sign later this week. I will probably still do the MSDs either way. My new M3 will be 15% more per month (due to multiple factors, of course) than my current M4 which is giving me heart palpitations. So the lower payment will be attractive. Am I leaving money on the table by not investing that spare cash in a better manner? Probably. But buying an M is probably not the smartest financial move either.

[1M4]

[QUOTE=ben1233;23001651]

Originally Posted by 1M4

I agree with what you stated and would add that 5 MSDs today != 5 MSDs in 2015.
By the looks of it, the reduction used to be .00007 per and now its .00005. My dealer has not yet volunteered this information but with the help of the BMW lease spreadsheet I think I've reverse engineered it and indeed the buy down rate is less under this rollover program.


I'll be on the lookout for it when I sign later this week. I will probably still do the MSDs either way. My new M3 will be 15% more per month (due to multiple factors, of course) than my current M4 which is giving me heart palpitations. So the lower payment will be attractive. Am I leaving money on the table by not investing that spare cash in a better manner? Probably. But buying an M is probably not the smartest financial move either.

The return would be really awesome if say you had a hypothetical 500.00 payment maxed to 7 for a 3500 msd .If the discount per month was about 50.00 per month for 36 months ,I would say an 1800 return on a 3500 investment is pretty solid.
I don’t know anyone in an m car at a 500 payment without a ton of money down which kind of defeats the purpose of the msd but I do know of some that have 330’s and lower msrp vehicles that are getting that type of return.

[Ty Vil]

You can still roll over 7 MSDs - the rate reduction is smaller now 35 basis points (5 points x up to 7 deposits) instead of the previous 49 basis points.

[jmg]

Originally Posted by Ty Vil

You can still roll over 7 MSDs - the rate reduction is smaller now 35 basis points (5 points x up to 7 deposits) instead of the previous 49 basis points.

I'll lease returning 2 cars within the next year a few months apart. The first car has MSDs and the second does not. Can I roll over the MSDs on the first car, and then do an MSD on whatever will replace the 2nd car later?

[ben1233]

Originally Posted by jmg

I'll lease returning 2 cars within the next year a few months apart. The first car has MSDs and the second does not. Can I roll over the MSDs on the first car, and then do an MSD on whatever will replace the 2nd car later?

I don't know if this will help but I'll offer up my situation...
I was originally offered an MSD rollover. My current '15 M4 lease is up on May 4, 2018. I picked up my '18 M3 on April 6, 2018. (Side note my new F80 is AY and the F82 is also AY...neighbors are looking at me funny).

Obviously since my M4 is still on lease and there are no pull forward options, a "rollover" isn't really possible from the banks (BMWFS) perspective. However they did let me fork new cash into new MSDs for the '18. So this whole idea of MSDs rolling over isn't entirely correct. Instead, they're basically extending the MSD offer on new purchases. I'll have my 2015 MSDs refunded to me in May, about a month from now.

[jmg]

Originally Posted by ben1233

I don't know if this will help but I'll offer up my situation...
I was originally offered an MSD rollover. My current '15 M4 lease is up on May 4, 2018. I picked up my '18 M3 on April 6, 2018. (Side note my new F80 is AY and the F82 is also AY...neighbors are looking at me funny).

Obviously since my M4 is still on lease and there are no pull forward options, a "rollover" isn't really possible from the banks (BMWFS) perspective. However they did let me fork new cash into new MSDs for the '18. So this whole idea of MSDs rolling over isn't entirely correct. Instead, they're basically extending the MSD offer on new purchases. I'll have my 2015 MSDs refunded to me in May, about a month from now.

Thanks for the clarity. I have my i3 which I made MSDs on and I want to make a MSD on it's replacement in a few months, another i3. Then when my M3 lease is up later, I'm wondering if they can extend the MSD offer on the new lease, despite the fact that I do not have any MSDs on my current M3, but I will for the new i3.

[Ty Vil]

This is how it was presented:

The program is restricted to returning BMW Lease customers with MSDs on their retiring account.

[Ty Vil]

Originally Posted by jmg

I'll lease returning 2 cars within the next year a few months apart. The first car has MSDs and the second does not. Can I roll over the MSDs on the first car, and then do an MSD on whatever will replace the 2nd car later?

No.

[Bch53211]

Pardon my ignorance what is MSD?

[1M4]

Originally Posted by Bch53211

Pardon my ignorance what is MSD?

Bmw just ended a program that allowed you to deposit up to the equivalent of 7 payments in their account for which they would lower your money factor on your lease.At the end of your lease you would get the money returned to you if you didn’t owe them any damage fees, excess mileage fees, or any miscellaneous fees at the end of your lease.
The difference between putting money down to lower your payment is if your car got stolen or was a total loss the MSD’s get returned to you and your down payment which is really a prepayment is lost.

[mzdial]

Thanks everyone for their perspective/knowledge on this. I took over a lease last year (which has 1xMSD) and my SA mentioned he believed that the MSD was grandfathered in for current lease holders. I'm in the process of either buying out my 2015, or go a different direction.