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2014 BMW 3-Series Lease Questions

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  • MichaellMichaell Moderator Posts: 263,134

    @gigabertz said:
    Hello all. Looking for feedback on my current offer for a 328i GT for a 36/12k:

    • MSRP: 50675
    • Sell Price: 45870
    • MF: 0.00130
    • Res: 63%

    • Monthly: 531.22

    • Acquisition: 725

    • Fees & Insurance: 525 (Not sure what this is? Is this the same as the Doc fee?)
    • Upfront Taxes: 70.44
    • 1st month: 531.22
    • Driveoff: 1851.66

    Seems like a good deal to me, but wondering if I have any more wiggle room here. Any suggestions?

    Base MF, good discount from sticker and the Acquisition fee isn't marked up. I calculate a pre-tax payment of $488.49. Seems a solid deal.

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  • celestialbeingcelestialbeing Member Posts: 3

    This is an awesome thread guys!
    Looking for your feedback on the following lease deal for BMW 328i
    12k/yr; 36 months;
    MSRP: 44,600
    Selling price: 40,600
    Residual: 60%
    Amount due at signing: 5,000
    Monthly payment: 381
    MF: 0.0013

    I live in NY and unfortunately can't do the MSD. Such a bummer! My signing amount includes a down payment of around $3,000.

  • MichaellMichaell Moderator Posts: 263,134

    @celestialbeing said:
    This is an awesome thread guys!
    Looking for your feedback on the following lease deal for BMW 328i
    12k/yr; 36 months;
    MSRP: 44,600
    Selling price: 40,600
    Residual: 60%
    Amount due at signing: 5,000
    Monthly payment: 381
    MF: 0.0013

    I live in NY and unfortunately can't do the MSD. Such a bummer! My signing amount includes a down payment of around $3,000.

    The dealer is quoting you the base MF, so that is good. Is the $3000 coming off the $40,600 or does it already include it?

    I don't recommend making a down payment on a lease; if the car is stolen or totaled, you are out that money.

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  • celestialbeingcelestialbeing Member Posts: 3

    @Michaell said:
    I don't recommend making a down payment on a lease; if the car is stolen or totaled, you are out that money.

    Yes, the $3000 come further off the negotiated priced of $40,600. Yeah I am not too keen on making a down payment now. Do you know if dealerships in NJ can give me a better deal with the MSD option?

  • MichaellMichaell Moderator Posts: 263,134

    @celestialbeing said:
    Yes, the $3000 come further off the negotiated priced of $40,600. Yeah I am not too keen on making a down payment now. Do you know if dealerships in NJ can give me a better deal with the MSD option?

    NJ allows MSDs to be made; NY does not.

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  • stanglxstanglx Member Posts: 3
    edited June 2014

    Need to know if this is a good deal:

    There is some hokey going on... I know that... but is this a good deal:

    I have 4 payments left on my current lease to Infinity of $475 = 1,900

    I am looking at a BMW 335 XI with Premium, Nav, Premium Paint, Cold Weather Package, Sport.

    MSRP 53,850
    Selling Price (this is where it gets somewhat shady - it could be higher or lower): $49,290
    MF: .00130 ( what I was told)
    Residual: 63% (what I was told)
    36 months
    10k miles

    Payment: $582 that includes tax
    Out of pocket when I pick up the car: $684 (first month only plus small fees like inspection, doc fees, etc.), no acquisition fee, no tax, no cap cost, etc.

    In reality my out of pocket is $684 plus $1,900 (infiniti lease) = 2,584

    I beat them up telling them if they are truly going to get me out of my car then I would expect the deal to be compelling...

    I am contemplating this as the sales advisors advice was he cant guarantee that 2014s will be available in November or December and for sure the 2015s will NOT have as aggressive savings, but he was honestly and said it could but his experience says not. They will heavily discount the 2014s until inventory runs out.

    What do you think?

  • MichaellMichaell Moderator Posts: 263,134

    @stanglx said:
    Need to know if this is a good deal:

    There is some hokey going on... I know that... but is this a good deal:

    I have 4 payments left on my current lease to Infinity of $475 = 1,900

    I am looking at a BMW 335 XI with Premium, Nav, Premium Paint, Cold Weather Package, Sport.

    MSRP 53,850
    Selling Price (this is where it gets somewhat shady - it could be higher or lower): $49,290
    MF: .00130 ( what I was told)
    Residual: 63% (what I was told)
    36 months
    10k miles

    Payment: $582 that includes tax
    Out of pocket when I pick up the car: $684 (first month only plus small fees like inspection, doc fees, etc.), no acquisition fee, no tax, no cap cost, etc.

    In reality my out of pocket is $684 plus $1,900 (infiniti lease) = 2,584

    I beat them up telling them if they are truly going to get me out of my car then I would expect the deal to be compelling...

    I am contemplating this as the sales advisors advice was he cant guarantee that 2014s will be available in November or December and for sure the 2015s will NOT have as aggressive savings, but he was honestly and said it could but his experience says not. They will heavily discount the 2014s until inventory runs out.

    What do you think?

    Base MF, so that's good. Decent discount from sticker - also good. Can you get more? Don't know, I'm not shopping BMW's at the moment.

    Forget about remaining payments on your current car. The Infiniti is worth "X" as trade value to your dealer, and you owe "Y" amount to Infiniti to buy out the lease early. You need to figure out the values of X and Y to determine how much negative equity is being rolled into the deal.

    Excluding any dollars from the trade, your MSRP and selling price, along with the MF and residual, come to $534.97 before tax.

    Once you know how much negative (or positive) equity you have in the Infinity, we can figure out how that will affect your payment.

    Also check into using MSDs to buy down the MF - max MSDs will reduce your payment by about $40/mo, and you get that money back at the end of the lease.

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  • jlvnycjlvnyc Member Posts: 0

    What should I be getting for residual on 2014 328i 36/10k? The dealer is quoting 61%. Is this the best they can do?

  • jlvnycjlvnyc Member Posts: 0

    What should I be getting for residual on 2014 328i 36/10k? The dealer is quoting 61%. Is this the best they can do?

  • hpcljhpclj Member Posts: 6
    null
    MSRP = $44,921
    MF = .0013
    Residual = 63%
    Sale price = $39,500
    2014 328i xDrive with metallic paint, Premium and Cold Weather Packages
    3 year lease with $440 pyt, 15K miles, $0 cap cost down, $2,600 at signing (includes taxes, $750 acquisition fee, MV fees and first pyt).
    Is this a decent deal?
  • MichaellMichaell Moderator Posts: 263,134

    @jlvnyc said:
    What should I be getting for residual on 2014 328i 36/10k? The dealer is quoting 61%. Is this the best they can do?

    Residual is set by the finance company and cannot be modified by the dealer. I confirm 61% for 328i for 36 months and 10K miles per year.

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  • stanglxstanglx Member Posts: 3

    Thanks for the feedback...

    I see your point. Which honestly echos the sales persons statements.

    The dealer is NOT buying back the car and they are NOT paying off my infiniti. That is my responsibility. What they are doing is giving me an aggressive discount.

    If I look at the number the deal is

    MSRP 53,850
    Selling Price of $49,330
    out of pocket is $684

    To entice me to buy the car this month they are waving the acquisition fee of $750 based on what I am seeing

    In reality this is the deal which my calculations align with this based on a MF of .00130 and a resid of 63%

    So I guess what I am hearing is that is it worth me getting out of my current lease early and would I get the same deal at that time when my lease has expired ?

    In reality what ever they are offereing is going to be $1,900 more than what I am paying -- I have to factor this in...

    So my real deal is 51230k with no aquisition fee (the lease deal is correct). After writing this out.. It looks like a good deal but could I get a BETTER deal later on?

  • MichaellMichaell Moderator Posts: 263,134

    @hpclj said:
    null
    MSRP = $44,921
    MF = .0013
    Residual = 63%
    Sale price = $39,500
    2014 328i xDrive with metallic paint, Premium and Cold Weather Packages
    3 year lease with $440 pyt, 15K miles, $0 cap cost down, $2,600 at signing (includes taxes, $750 acquisition fee, MV fees and first pyt).
    Is this a decent deal?

    36/15 MF is .00130 but I show the residual as 59%. Base acquisition fee is $725.

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  • hpcljhpclj Member Posts: 6
    36/15 MF is .00130 but I show the residual as 59%. Base acquisition fee is $725.

    My bad, Acquisition Fee is $725, just typed it wrong. Does the 63% residual, considering the other details, make it a bad deal?
  • MichaellMichaell Moderator Posts: 263,134

    @hpclj said:
    36/15 MF is .00130 but I show the residual as 59%. Base acquisition fee is $725.

    My bad, Acquisition Fee is $725, just typed it wrong. Does the 63% residual, considering the other details, make it a bad deal?

    No, just confusing. Residual is not negotiable. You may want to confirm that this is a BMWFS based lease. The dealer may be using a different finance company that has different numbers.

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  • dvweaverdvweaver Member Posts: 7

    Hello All,
    I am wondering if this is a good deal....
    I am looking at a 320i base base base model. Sticker $33,675.00
    My tax rate is 9%
    I have been offered a payment of $409/month with $ZERO money down, only $250 for title/lic and first month payment due at signing....so about $660 due at signing and that's it! I live in Louisiana, FYI. Thanks!

  • dvweaverdvweaver Member Posts: 7

    Oh....12K miles/year

  • MichaellMichaell Moderator Posts: 263,134

    @dvweaver said:
    Hello All,
    I am wondering if this is a good deal....
    I am looking at a 320i base base base model. Sticker $33,675.00
    My tax rate is 9%
    I have been offered a payment of $409/month with $ZERO money down, only $250 for title/lic and first month payment due at signing....so about $660 due at signing and that's it! I live in Louisiana, FYI. Thanks!

    What is the negotiated selling price?

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  • dvweaverdvweaver Member Posts: 7

    @Michaell‌ it is 31,525. I hope that is a good deal. Also, my mistake...it is $775 due at signing for the first payment and up-fronts.

  • hpcljhpclj Member Posts: 6

    @Michaell said:
    No, just confusing. Residual is not negotiable. You may want to confirm that this is a BMWFS based lease. The dealer may be using a different finance company that has different numbers.

    Should I care about who the finance company is? I guess I am interested strictly in the economics of the deal and whether for the total outlay, given the car and it's features, it is a good deal.

  • kyfdxkyfdx Moderator Posts: 266,809
    edited June 2014

    @hpclj said:

    It's doubtful that a BMW dealer is using any other bank than BMWFS. That said, captive finance companies tend to be more forgiving at lease end, because their corporate parent wants to sell you another car.

    High residuals are good for low lease payments. 63% is very high.

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  • MichaellMichaell Moderator Posts: 263,134

    @dvweaver said:
    Michaell‌ it is 31,525. I hope that is a good deal. Also, my mistake...it is $775 due at signing for the first payment and up-fronts.

    you didn't mention the lease term, so i'm assuming 36 months. MF is .00130 and residual is 63% for 36/12. using your MSRP and selling price, i get a pre-tax payment of $354.94.

    your dealer may be marking up the MF for a bit of extra profit

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  • zdezazdeza Member Posts: 2
    edited June 2014

    Is this a good deal? 2014 335i drive, 36 months, 10K/year MSRP: $58,990.00, Selling Price: $54,270.00 (8% off), MF: 0.00170 and residual 63%, MSD: 7 ($4900.00), Cash on delivery $5,963.41, $673/month with tax. I tried to get base MF but wouldn't budge at all.

  • MichaellMichaell Moderator Posts: 263,134

    @zdeza said:
    Is this a good deal? 2014 335i drive, 36 months, 10K/year MSRP: $58,990.00, Selling Price: $54,270.00 (8% off), MF: 0.00170 and residual 63%, MSD: 7 ($4900.00), Cash on delivery $5,963.41, $673/month with tax. I tried to get base MF but wouldn't budge at all.

    Is the .00170 MF before or after the MSD's are applied? As is, your numbers pencil out to $630.61 before tax.

    You should talk to another BMW dealer; I wouldn't sign any deal that includes an inflated MF. Start with the .00130 before applying the MSDs - that takes the MF down to .00081 - pre-tax payment drops to $549.24 - over $90/mo.

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  • zdezazdeza Member Posts: 2

    .00170 before MSD applied so .00121 after MSDs. Yeah i'm talking to a couple other dealers right now. That one also had a 925 acquisition.

  • brianbbbrianbb Member Posts: 18

    @kyfdx said:
    .00130 MF and 61% residual for 36mo, 15K/yr. $500 option credit.

    Thanks so much! could I also get the same MF And Residual for a RWD 328d for 36 months and 12k per year, also do you know if the Eco credit and option credit can be combined? Again, thanks!

  • kyfdxkyfdx Moderator Posts: 266,809

    @brianbb said:

    .00130 MF and 61% residual.. Yes, the $1250 and $1000 credits can be combined.

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  • talbotyancytalbotyancy Member Posts: 13

    I've been reading these posts to educate myself on leases again. I currently own a 2011 335i coupe and I've gone over my mileage to the tune of $3800. Looking to start a new lease with the early lease termination program so I don't go farther over.

    The car I'm considering is a 2014 335i sedan MSRP $55,200. Edmunds Tru Market is $50,650. The dealership's "e-Price" is $51,941, and they are offering a $1k coupon tomorrow for some test drive event. Applying the coupon brings me to $50,941, not far from the Tru Market price.

    My question is, can I then apply the current $1250 option credit to that price? Is there still a $500 loyalty credit? Would $49,191 be reasonable?

    Also, can the dealership negotiate the overage on the previous lease or do they have to eat it?

  • MichaellMichaell Moderator Posts: 263,134

    @talbotyancy said:
    I've been reading these posts to educate myself on leases again. I currently own a 2011 335i coupe and I've gone over my mileage to the tune of $3800. Looking to start a new lease with the early lease termination program so I don't go farther over.

    The car I'm considering is a 2014 335i sedan MSRP $55,200. Edmunds Tru Market is $50,650. The dealership's "e-Price" is $51,941, and they are offering a $1k coupon tomorrow for some test drive event. Applying the coupon brings me to $50,941, not far from the Tru Market price.

    My question is, can I then apply the current $1250 option credit to that price? Is there still a $500 loyalty credit? Would $49,191 be reasonable?

    Also, can the dealership negotiate the overage on the previous lease or do they have to eat it?

    My guess is that the "e-price" already includes the $1250 option credit, so I doubt there is much more wiggle room on the sales price.

    Regarding the mileage credit - BMW is still offering their 'pull ahead' program, where remaining payments are waived if a new lease is started. I don't know how the $3800 of mileage charges are handled - you may want to contact a couple of different dealers to see if you get the same story. I don't see the charges going away - in part or in whole, I would expect them to show up in your new lease.

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  • talbotyancytalbotyancy Member Posts: 13

    So you think $51,941 is an okay sales price, or I should shoot for something closer to invoice, which is $50,765.

    Also, via email they quoted me .00170 MF. The base is .00130, correct?

    Thanks for the info!

  • MichaellMichaell Moderator Posts: 263,134

    @talbotyancy said:
    So you think $51,941 is an okay sales price, or I should shoot for something closer to invoice, which is $50,765.

    Also, via email they quoted me .00170 MF. The base is .00130, correct?

    Thanks for the info!

    Base is .00130, so your dealer is marking up the MF (quite common).

    If you don't ask, you don't get. Offer invoice minus incentives and see what they say. Better yet, contact a second BMW dealer and see if you can get them to negotiate against one another.

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  • talbotyancytalbotyancy Member Posts: 13

    There are two BMW dealers in Oklahoma and they're both owned by the same company. But maybe they would negotiate against each other.

    I told him the MF was marked up, and he agreed it was. "We do that to make a profit." So I reply with "Well, I don't want to pay that."?

  • celestialbeingcelestialbeing Member Posts: 3

    @Michaell said:
    NJ allows MSDs to be made; NY does not.

    After a few negotiations I bagged the following deal in NY with $425/month and $1073 due at signing on an MSRP of $44,600!!!

  • nyccarguynyccarguy Member Posts: 17,522
    edited June 2014

    @talbotyancy‌

    Ok, that sucks. There are however a couple of ways around your situation. 1 is to obviously try to buy the car from another dealer out of state. Use the power of the Internet to your advantage. Look at dealers' inventories to see if they have what you want. You could hop a cheap 1 way flight, pick up your new car, & drive it home. You could arrange to have your new BMW shipped directly to your door.

    If neither of these is an option, figure out the total cost of the lease if the dealer isn't marking up the money factor. Then figure out the total cost of the lease as it stands right now with the dealer marking up the money factor. Find a way to build the difference into your offer. Say after 36 months, it is going to cost you $300 more (just picked that number out of my head). Ask him to lower the Capitalized Cost (selling price) of the vehicle by that $300. This way it looks like he stood his ground & you get the same payment in the end.

    Keep us updated.

    Remember, if you walk out the door, he gets no sale. You have the power. It's the end of the month and these guys have to sell cars.

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  • tengineertengineer Member Posts: 5

    I'm here in SoCal trying to lease a 2014 328i. MSRP = $45475, and the dealer gave me a "sample" lease workup at a selling price of $41,500. The Edmunds adjusted TMV = $40095 and the truecar dealer price is $40,888. However, there are many sales showing in truecar at just below $38k for my zip code.

    Questions:
    1) For this time of year (and month's end), what would be a minimum discount from MSRP?
    2) Does a title fee have to be paid in a lease since the lessee will not have an ownership interest?
    3) The dealer will do MSDs. I would like to do 7. Is each SD based on the adjusted MF or is it based on the base MF of .0013?

    Thanks for your input.

  • xyz126xyz126 Member Posts: 3

    Do you guys know what the incentives are for July? I'm taking delivery on a 335i in July. Was hoping for something better than the current $1250.

  • MichaellMichaell Moderator Posts: 263,134

    @tengineer said:
    I'm here in SoCal trying to lease a 2014 328i. MSRP = $45475, and the dealer gave me a "sample" lease workup at a selling price of $41,500. The Edmunds adjusted TMV = $40095 and the truecar dealer price is $40,888. However, there are many sales showing in truecar at just below $38k for my zip code.

    Questions:
    1) For this time of year (and month's end), what would be a minimum discount from MSRP?

    I'd start with the invoice price, and subtract any incentives from that - as a starting point.

    2) Does a title fee have to be paid in a lease since the lessee will not have an ownership interest?

    Yes.

    3) The dealer will do MSDs. I would like to do 7. Is each SD based on the adjusted MF or is it based on the base MF of .0013?

    Ideally, the MF reduction would start from the base MF of .00130 - a maximum of 7 MSDs would reduce the MF to .00081.

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  • tengineertengineer Member Posts: 5

    Michaell,

    Thank you for the reply. For the 7 MSD's, is each MSD calculated using the unadjusted MF of .0013 ($501.04) or is it based on the adjusted MF of .00081 ($465.01)? In either case, what should each MSD payment be using whatever rounding they do?

    Thanks for your help.

  • brooklynaudibrooklynaudi Member Posts: 53

    @celestialbeing said:
    After a few negotiations I bagged the following deal in NY with $425/month and $1073 due at signing on an MSRP of $44,600!!!

    Selling price?

  • MichaellMichaell Moderator Posts: 263,134

    @tengineer said:
    Michaell,

    Thank you for the reply. For the 7 MSD's, is each MSD calculated using the unadjusted MF of .0013 ($501.04) or is it based on the adjusted MF of .00081 ($465.01)? In either case, what should each MSD payment be using whatever rounding they do?

    Thanks for your help.

    i believe it's based on the original payment, rounded up to the next highest $50.

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  • tengineertengineer Member Posts: 5

    I was just offered $40,500 with MSRP of $45,475. Acquisition fee was $925 and the reduced MF with 7 MSDs is .00081. Doesn't seem like a good deal since Edmunds TMV is $40,095 and the average price paid on Truecar is $40,430. Am I wrong?

  • MichaellMichaell Moderator Posts: 263,134

    @tengineer said:
    I was just offered $40,500 with MSRP of $45,475. Acquisition fee was $925 and the reduced MF with 7 MSDs is .00081. Doesn't seem like a good deal since Edmunds TMV is $40,095 and the average price paid on Truecar is $40,430. Am I wrong?

    You are getting the base MF, but the acq fee is marked up and, as you've noted, there might be a little bit more to save on the price. Overall, you might save $15-20/mo.

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  • tengineertengineer Member Posts: 5

    Got another 328i offer from a different dealer: MSRP: $45,135; selling price: $39,500. Instead of heated seats this one has wheel locks. Options include prem. package, driver assistance, and nav. They'll also do the 7 MSDs to get the rate to .00081. Acquisition fee is $925.00 as usual.

    I usually drive about 9800 miles per year. Is it best to get a 10k/yr. lease or should I have a buffer and get the 12k/yr.? The dealer mentioned that I could buy the difference midway through the lease but I didn't quite understand what the cost was.

  • kyfdxkyfdx Moderator Posts: 266,809

    @tengineer said:
    Michaell,

    Thank you for the reply. For the 7 MSD's, is each MSD calculated using the unadjusted MF of .0013 ($501.04) or is it based on the adjusted MF of .00081 ($465.01)? In either case, what should each MSD payment be using whatever rounding they do?

    Thanks for your help.

    When I did MSDs on a BMW, the SD amount was based on the actual lease price (post-reduction). When I did it on Infiniti, they based the amount on the pre-reduction price.

    So, I vote for the lower amount, but that doesn't mean your dealer will agree with me.

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  • kyfdxkyfdx Moderator Posts: 266,809

    @tengineer said:
    Got another 328i offer from a different dealer: MSRP: $45,135; selling price: $39,500. Instead of heated seats this one has wheel locks. Options include prem. package, driver assistance, and nav. They'll also do the 7 MSDs to get the rate to .00081. Acquisition fee is $925.00 as usual.

    I usually drive about 9800 miles per year. Is it best to get a 10k/yr. lease or should I have a buffer and get the 12k/yr.? The dealer mentioned that I could buy the difference midway through the lease but I didn't quite understand what the cost was.

    Getting those 6000 extra miles will add $450 to your total cost. 7.5 cents/mile. That's pretty cheap.. You can buy extra miles from BMWFS up until 6 months before your lease is up at 16 cents/mile. That puts the break-even point at around 11K mi/yr.

    Only you can decide the likelihood that you'll need more miles. 3 years is a long time, though..

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  • tengineertengineer Member Posts: 5

    kyfdx,

    Thanks for the excellent info.

  • konacougkonacoug Member Posts: 196

    @tengineer said:
    Michaell,

    Thank you for the reply. For the 7 MSD's, is each MSD calculated using the unadjusted MF of .0013 ($501.04) or is it based on the adjusted MF of .00081 ($465.01)? In either case, what should each MSD payment be using whatever rounding they do?

    Thanks for your help.

    The MSD is based on the reduced payment rounded up to the next $50. So, in your case it would be $500 per MSD. I never recommend de capping the lease, but you are close to $450, I would play with the lease calculator and see how much it would take to make the payment $449. Are you paying the standard drive offs?? such as the big one, the lease acquisition fee?

  • davidjacksndavidjacksn Member Posts: 6

    Could someone please explain MSD's and how they work. I live in Las Vegas and am looking to lease a 2014 328i and have never heard of using MSD's. Not sure if I can even use them in this state. Any help is great!

  • MichaellMichaell Moderator Posts: 263,134

    @davidjacksn said:
    Could someone please explain MSD's and how they work. I live in Las Vegas and am looking to lease a 2014 328i and have never heard of using MSD's. Not sure if I can even use them in this state. Any help is great!

    MSD stands for Multiple Security Deposit. Basically, you loan the finance company money and in return they lower the MF (rent charge) for the lease. At the end of the lease, the finance company returns the money to you.

    The amount of each security deposit is the monthly payment rounded up to the next $50. Each deposit reduces the MF by .00007 - a maximum of 7 MSDs are allowed, so a cumulative .00049 reduction in the MF.

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  • davidjacksndavidjacksn Member Posts: 6
    edited June 2014

    @Michaell - Thank you for explaining.

    Here is what BMW is currently offering for a 2014 328i. Is this a good deal?

    MSRP: $48,269.00

    Selling Price: $42,993.00

    Residual: 61%

    MF: .00130

    36 month 10k/yr

    $0 down other than first payment

    Payment: $552/month

    Thanks!!

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