Quote:
Originally Posted by BlueZ4AZ
We all know with a lease you don't get your CAP reduction back at the end, so it should tbe considered part of the cost you will never recoup. On these leases, the required $$ up front is $3500 CAP reduction, $550 Sec Dep, $725 Aqusiton fee. About $4500, give or take, depending on the exact model/options. I guess BMW might let you role the CAP reduction into the mo. payment, but either way it's coming out of your pocket for good. It doesn't really matter if you're going to pay CAP Reduction of $3500 + $600/mo .....or $0 CAP Reduction and $720/mo. Either way, the money is gone.
None of this takes away from the fact this is a great lease plan.
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Fair enough, I think you and I are saying about the same thing, just differently. I just read your post to mean than you had to put a CCR down to get the good MF and residual here, and of course you don't. I don't ever put a CCR down due to the risk of loss, so I don't even consider it in any decision to lease. For the folks that are basing their decision on the advertised payments on BMW.com, then yes you have to consider the CCR.
The point that was being debated was how big a negative the 30 month term is compared to a 36 monther. I offered that it isn't, but then again I think a big part of the appeal of leasing generally is that you get to drive the "latest and greatest" and move on to something later and greater after 2-3 years. With this lease, you get a great looking and performing car that's fresh and unique, and then you're out of it in February of 2012 and can be shopping over the winter for your next car during the months when BMW has historically had its best lease deals. Yes, you do have to consider the cost of a set of tires and the fees as part of the total cost of the lease, but even so this is a fantastic deal for folks in the market right now. The fact that BMWFS lease terms have been pretty lousy this year IMHO makes it all the more compelling.
Quote:
Originally Posted by 135iUSN
curious, what IS MSD lease  |
Multiple Security Deposits, basically you can put down up to 7 additional security deposits each of which lower the MF by .0007. With this lease you would go up to 6 since the lowest MF BMWFS uses is .0005. In essence, you're putting up a pool of money that BMWFS sits on during your lease. That gives them financial protection in case you default or trash the car, and they encourage them by giving you a break on the interest rate. Lots of folks advocate their use over putting money down as a CCR since you get it all back at the end of the lease (as long as you've made all your payments and the car doesn't have wear and tear outside the turn-in guidelines). There are drawbacks and risks to using them, but for good candidates they're basically a super low risk way to "earn" 9-11% on your money over your lease term.