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      04-08-2015, 06:35 AM   #177
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Quote:
Originally Posted by BGM View Post
that "money factor" nonsense is ridiculous..

why not just use interest rates?
Yes it's a little convoluted, but once you know how to convert it, it's very simple.
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      04-08-2015, 09:28 AM   #178
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Originally Posted by OneRib View Post
Yes exactly. A lease amounts to paying for the depreciation of the vehicle while in your hands (+interest and fees). How you decide to pay it is up to you. You could essentially put the whole lease cost down in one up front payment and drive around for free. If you did that and halfway through he lease wanted out, you would want a prorated amount back. You wouldn't want the person taking the lease over to drive around for free. The one taking over the lease would not want to pay you anything. The lease holder has less leverage because they are on the hook for the lease term unless someone agrees to take it over.

So in your example the $10k is your money you used to help finance borrowing the vehicle for a set period. You would want the prorated amount back if you don't use the vehicle for the whole time. Now you have to find someone willing to give it to you. If you put no money down, its just a matter of taking over the monthly payment.
Yeah, that's what I assumed, just the way Powaup phrased it as " the new leasee would be required to make a lump payment for the total value of cap cost reduction left on the lease." made it sound as though further payment was due to BMW. They're not actually required to do that by any lease transfer contract, you just want them to give you that cash back so you don't get hosed.
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      04-08-2015, 10:39 AM   #179
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      04-08-2015, 10:55 AM   #180
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Great info, if anyone is ever able to find a link to lease tax rates, it would be nice to have this in there as well. I have searched and searched for Tennessee and I can't find anything.
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      04-08-2015, 12:00 PM   #181
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Wonderful write up and very helpful

Can you please explain this "A maximum of 7 MSDs can be applied. Each one reduces the money factor 0.00007. Each MSD costs the monthly payment rounded up to the nearest $50."

In other words how much i need to pay for each MSD, is it 50 USD per MSD ? If i buy 7 MSD, does it mean its 350 bucks i need to pay for security deposit?
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      04-08-2015, 12:28 PM   #182
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Quote:
Originally Posted by boss2k View Post
Can you please explain this "A maximum of 7 MSDs can be applied. Each one reduces the money factor 0.00007. Each MSD costs the monthly payment rounded up to the nearest $50."

In other words how much i need to pay for each MSD, is it 50 USD per MSD ? If i buy 7 MSD, does it mean its 350 bucks i need to pay for security deposit?
No, it's a monthly payment rounded up to the nearest $50. For example, if your monthly payment is $815, each security deposit would be $850.

Thus, 7 security deposits would be $5,950. Considering this may reduce your total payments by ~$50/month, it's not a bad ROI.
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      04-08-2015, 12:33 PM   #183
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Quote:
Originally Posted by Dethsupp0rt View Post
No, it's a monthly payment rounded up to the nearest $50. For example, if your monthly payment is $815, each security deposit would be $850.

Thus, 7 security deposits would be $5,950. Considering this may reduce your total payments by ~$50/month, it's not a bad ROI.
boss2k This is correct and remember you also get the MSD money back at the end of the lease.
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      04-08-2015, 12:46 PM   #184
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Quote:
Originally Posted by OneRib View Post
boss2k This is correct and remember you also get the MSD money back at the end of the lease.
what if i sell/trade in the car before lease ends ( say 6months before) ... do i get the MSD's back?
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      04-08-2015, 01:45 PM   #185
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Quote:
Originally Posted by boss2k View Post
what if i sell/trade in the car before lease ends ( say 6months before) ... do i get the MSD's back?
If the dealer buys it or you use a pull ahead program, then yes you get it back. Otherwise the party assuming the lease gets the money at the end . BMW treats the security deposit as belonging to the actual lease, not the original depositor. So if you have a strong feeling you will not keep the car through the whole lease period, don't pay for MSDs.
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      04-09-2015, 04:10 PM   #186
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Great thread! Everything is very nicely organized.

I would humbly suggest that you add to the section on tires to consider a 2 yr lease. That will save you the cost of runflats. I did a 2 yr lease back in 2008 on a 335xi Euro Delivery. It basically worked out within a few dollars of the 2 yr ED vs a 3 yr ED with a new set of Sport Package RFT's.
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      04-09-2015, 04:56 PM   #187
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Quote:
Originally Posted by rallycobra View Post
Great thread! Everything is very nicely organized.

I would humbly suggest that you add to the section on tires to consider a 2 yr lease. That will save you the cost of runflats. I did a 2 yr lease back in 2008 on a 335xi Euro Delivery. It basically worked out within a few dollars of the 2 yr ED vs a 3 yr ED with a new set of Sport Package RFT's.
I wasn't aware that BMWFS was offering that length of time in recent history. If I can confirm this, I will add it in.
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      04-09-2015, 06:01 PM   #188
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Quote:
Originally Posted by OneRib View Post
I wasn't aware that BMWFS was offering that length of time in recent history. If I can confirm this, I will add it in.
They absolutely offer 24-month leases currently.
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      04-09-2015, 06:37 PM   #189
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Quote:
Originally Posted by MRCUR View Post
They absolutely offer 24-month leases currently.
Thanks
I will add it in the original post.
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      04-09-2015, 07:18 PM   #190
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A dealer offered me what is called owners choice program ... has anyone heard of it and how does it work ...he says it's not a lease!!!
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      04-09-2015, 08:27 PM   #191
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Quote:
Originally Posted by boss2k
A dealer offered me what is called owners choice program ... has anyone heard of it and how does it work ...he says it's not a lease!!!
That's a balloon loan.
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      04-09-2015, 08:36 PM   #192
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Quote:
Originally Posted by MRCUR View Post
That's a balloon loan.
right how does it work? I am quoted same as lease terms which is 3 yrs and can I give back the car at end of the loan period which is 3 yrs like a lease.

please explain
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      04-10-2015, 03:11 AM   #193
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Edit: answered. sorry. I just saw an answer a page before.
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      04-10-2015, 03:16 AM   #194
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Quote:
Originally Posted by Dethsupp0rt
Quote:
Originally Posted by boss2k View Post
Can you please explain this "A maximum of 7 MSDs can be applied. Each one reduces the money factor 0.00007. Each MSD costs the monthly payment rounded up to the nearest $50."

In other words how much i need to pay for each MSD, is it 50 USD per MSD ? If i buy 7 MSD, does it mean its 350 bucks i need to pay for security deposit?
No, it's a monthly payment rounded up to the nearest $50. For example, if your monthly payment is $815, each security deposit would be $850.

Thus, 7 security deposits would be $5,950. Considering this may reduce your total payments by ~$50/month, it's not a bad ROI.
Which also makes a point to never mention you are going to put money down or do MSDs in advance. Always negotiate the lowest possible price first.

Then when you're ready to sign the deal mention the MSDs and you will drop your money factor therefore dropping the monthly payment.
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      04-10-2015, 05:46 AM   #195
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Quote:
Originally Posted by Dethsupp0rt
Quote:
Originally Posted by boss2k View Post
Can you please explain this "A maximum of 7 MSDs can be applied. Each one reduces the money factor 0.00007. Each MSD costs the monthly payment rounded up to the nearest $50."

In other words how much i need to pay for each MSD, is it 50 USD per MSD ? If i buy 7 MSD, does it mean its 350 bucks i need to pay for security deposit?
No, it's a monthly payment rounded up to the nearest $50. For example, if your monthly payment is $815, each security deposit would be $850.

Thus, 7 security deposits would be $5,950. Considering this may reduce your total payments by ~$50/month, it's not a bad ROI.
That much security deposit will only knock the payment down 50 a month? That does not seem worth it. Plus if you want out of the lease early that money is tied up.
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      04-10-2015, 09:54 AM   #196
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Quote:
Originally Posted by DS_BMW View Post
That much security deposit will only knock the payment down 50 a month? That does not seem worth it. Plus if you want out of the lease early that money is tied up.
Correct there is some risk, but you do get the money back at the end of the lease. Only if you damage, don't pay, or transfer the lease to another private party would you lose the MSD money.

If you want the ultimate in flexibility, then don't put any money down on a lease.
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      04-10-2015, 10:26 AM   #197
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Does BMW Ever negotiate at the end of the lease as far as the buy out price of the car?
I'd be curious as to if I could get it for a bit cheaper.
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      04-10-2015, 11:28 AM   #198
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Quote:
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Does BMW Ever negotiate at the end of the lease as far as the buy out price of the car?
I'd be curious as to if I could get it for a bit cheaper.
Yes they will negotiate. You can go through any BMW dealer and basically shop the car or call BMFS directly to see if they will take a lesser price.
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