Did you know about MSD??
Thread Starter
Contributors
Joined: Oct 2006
Posts: 107
Likes: 0
From: Miami, FL
My Ride: 2007 530i Saphire Black, Sport Package, Premium Package, HID, and SAT Radio.
I found out through a freind about MSD or multiple security deposits, your allowed up to seven months worth and I think it can drop the MF (money factor) by 45 bases points! When pricing out a M5 at my local bmw, it droped the payment $355.00!!
Can any one verify this??
Can any one verify this??
Contributors
Joined: Apr 2005
Posts: 7,363
Likes: 1
From: San Diego, CA
My Ride: 2007 E63 AMG | Obsidian Black | Schwarzes Nappa | Black BirdEye Maple | Premium II Package | Electronic Trunk Closer | Parktronic
Engine: RPi/Powerchips custom ECU tune, RPi Ram Air Kit (BMC filter, scoops), RennTech Sport exhaust, secondary cats, charcoal and resonator delete, custom AAA x-pipe
Exterior: 50% side windows / 35% rear window Formula One Pinnacle Series | Flat AMG hood emblem
Suspension: Renntech Lowering Module
Wheels/Tires: Radenergie R10, Falken FK452 245/30/20, Yokohama ADVAN Sport 285/25/20
-----------------------------------------
2005 545i Sport SMG | Ti Grau | Schwarzes Dakota | Anthracite Maple | Logic 7 | Nav
Engine: Custom AFE CAI, Superchips ECU remap, Sprint Booster, RDSport Dual Exhaust Conversion with Quad Pipes and X-pipe, 3 resonators deleted, 90mm tips!
Exterior: M-Tech Aero kit | M5 Mirrors | M5 Rear Bumper | Trunk Lid Finisher | Vorsteiner decklid spoiler | 50% Formula One Pinnacle Tint
Suspension and Brakes: Bilstein PSS9 coilovers, JBT BBK: 16" cross-drilled rotors, 8 piston and 15" cross-drilled rotors, 4 piston
Wheels: VIP Modular VR 02 20x9F, 20x10R | Toyo T1R 245/30/20F, 285/25/20R
Lights: PIAA 4150K Xtreme White Plus fog lights, AIB v3
MOST IMPORTANT: Hardwired V1; =)
ED Date: 4/7/05, Re-delivery date: 5/21/05
It's true. All refundable at end of lease. More info here: http://www.bimmerfest.com/forums/sho...d.php?t=134206
Members
Joined: Nov 2006
Posts: 50
Likes: 0
From: Alabama
My Ride: 2004 BMW 330i, Jet Black, Black Leather, Performance Pkg, 6 speed manual transmission
On-Order: 2007 BMW 530i, Titanium Gray, Black Leather, Sport, Premium, Cold Weather, 6 speed manual transmission, Nav, HUD, PDC, L7, Sirius, Rear Heated Seats
Originally Posted by MIAMI 5' post='383904' date='Jan 26 2007, 09:56 PM
I found out through a freind about MSD or multiple security deposits, your allowed up to seven months worth and I think it can drop the MF (money factor) by 45 bases points! When pricing out a M5 at my local bmw, it droped the payment $355.00!!
Can any one verify this??
Can any one verify this??
Contributors
Joined: Apr 2005
Posts: 7,363
Likes: 1
From: San Diego, CA
My Ride: 2007 E63 AMG | Obsidian Black | Schwarzes Nappa | Black BirdEye Maple | Premium II Package | Electronic Trunk Closer | Parktronic
Engine: RPi/Powerchips custom ECU tune, RPi Ram Air Kit (BMC filter, scoops), RennTech Sport exhaust, secondary cats, charcoal and resonator delete, custom AAA x-pipe
Exterior: 50% side windows / 35% rear window Formula One Pinnacle Series | Flat AMG hood emblem
Suspension: Renntech Lowering Module
Wheels/Tires: Radenergie R10, Falken FK452 245/30/20, Yokohama ADVAN Sport 285/25/20
-----------------------------------------
2005 545i Sport SMG | Ti Grau | Schwarzes Dakota | Anthracite Maple | Logic 7 | Nav
Engine: Custom AFE CAI, Superchips ECU remap, Sprint Booster, RDSport Dual Exhaust Conversion with Quad Pipes and X-pipe, 3 resonators deleted, 90mm tips!
Exterior: M-Tech Aero kit | M5 Mirrors | M5 Rear Bumper | Trunk Lid Finisher | Vorsteiner decklid spoiler | 50% Formula One Pinnacle Tint
Suspension and Brakes: Bilstein PSS9 coilovers, JBT BBK: 16" cross-drilled rotors, 8 piston and 15" cross-drilled rotors, 4 piston
Wheels: VIP Modular VR 02 20x9F, 20x10R | Toyo T1R 245/30/20F, 285/25/20R
Lights: PIAA 4150K Xtreme White Plus fog lights, AIB v3
MOST IMPORTANT: Hardwired V1; =)
ED Date: 4/7/05, Re-delivery date: 5/21/05
Correct. It won't drop the monthly payment by $355.
Money factor as of January 2007 for 2007 M5 is .0032 * 24 = 7.68% APR. (.0032) is the base rate that dealers can markup if they wish and they usually do.
Max 7 MSD: (.0032 - .00049 = .00271) * 24 = 6.5% APR
In addition to saving about $40 - $70 per month, the MSD would be the monthly payment times 7. So, if your monthly payment is $1300/month. $1300 * 7 = $9100 due at signing along with the acquisition fee, tax and license and first month's payment.
Money factor as of January 2007 for 2007 M5 is .0032 * 24 = 7.68% APR. (.0032) is the base rate that dealers can markup if they wish and they usually do.
Max 7 MSD: (.0032 - .00049 = .00271) * 24 = 6.5% APR
In addition to saving about $40 - $70 per month, the MSD would be the monthly payment times 7. So, if your monthly payment is $1300/month. $1300 * 7 = $9100 due at signing along with the acquisition fee, tax and license and first month's payment.
Members
Joined: Sep 2004
Posts: 51
Likes: 0
From: Phoenix, USA
vegastrashed,
Please forgive my rudimentary understanding of this issue but...if I understand this correctly if you do the MSD x 7 you will reduce your monthly payment and the MSDs will also be refunded to you at the end of the lease??
So what would make more financial impact on a lease:
Putting $3500 towards cap cost reduction or
Putting $3500 (monthly payment of $500 x 7) towards MSDs to lower the MF??
thanks for the link
Ray
Please forgive my rudimentary understanding of this issue but...if I understand this correctly if you do the MSD x 7 you will reduce your monthly payment and the MSDs will also be refunded to you at the end of the lease??
So what would make more financial impact on a lease:
Putting $3500 towards cap cost reduction or
Putting $3500 (monthly payment of $500 x 7) towards MSDs to lower the MF??
thanks for the link
Ray
Members
Joined: Sep 2004
Posts: 51
Likes: 0
From: Phoenix, USA
I sure hope my dealer is receptive to using MSDs. Here are the numbers for a 36 month 530i lease:
January money factor for the 530i was .00090. .00090 * 36 = 3.24%. Using MSDs (.00090-.00049 = .00041) * 36) gets you a 1.48% APR!!
That's lower than the outrageous December MF for the 530i of .00050!
January money factor for the 530i was .00090. .00090 * 36 = 3.24%. Using MSDs (.00090-.00049 = .00041) * 36) gets you a 1.48% APR!!
That's lower than the outrageous December MF for the 530i of .00050!
Contributors
Joined: Apr 2005
Posts: 7,363
Likes: 1
From: San Diego, CA
My Ride: 2007 E63 AMG | Obsidian Black | Schwarzes Nappa | Black BirdEye Maple | Premium II Package | Electronic Trunk Closer | Parktronic
Engine: RPi/Powerchips custom ECU tune, RPi Ram Air Kit (BMC filter, scoops), RennTech Sport exhaust, secondary cats, charcoal and resonator delete, custom AAA x-pipe
Exterior: 50% side windows / 35% rear window Formula One Pinnacle Series | Flat AMG hood emblem
Suspension: Renntech Lowering Module
Wheels/Tires: Radenergie R10, Falken FK452 245/30/20, Yokohama ADVAN Sport 285/25/20
-----------------------------------------
2005 545i Sport SMG | Ti Grau | Schwarzes Dakota | Anthracite Maple | Logic 7 | Nav
Engine: Custom AFE CAI, Superchips ECU remap, Sprint Booster, RDSport Dual Exhaust Conversion with Quad Pipes and X-pipe, 3 resonators deleted, 90mm tips!
Exterior: M-Tech Aero kit | M5 Mirrors | M5 Rear Bumper | Trunk Lid Finisher | Vorsteiner decklid spoiler | 50% Formula One Pinnacle Tint
Suspension and Brakes: Bilstein PSS9 coilovers, JBT BBK: 16" cross-drilled rotors, 8 piston and 15" cross-drilled rotors, 4 piston
Wheels: VIP Modular VR 02 20x9F, 20x10R | Toyo T1R 245/30/20F, 285/25/20R
Lights: PIAA 4150K Xtreme White Plus fog lights, AIB v3
MOST IMPORTANT: Hardwired V1; =)
ED Date: 4/7/05, Re-delivery date: 5/21/05
Your math is a little off. The correct numbers are:
The formula to derive the APR from Money Factor: MF * 24 * 100 = APR
.00090 * 24 = 2.16 % APR
Each security deposit takes .00007 off the Money Factor. Max 7 MSD: 7 * .00007 = .00049
((.00090 - .00049 = .00041) * 24) = .98 % APR! umm.... I don't think that BMW will allow this. You might want to ask the folks over in Ask-A-Dealer subforum in bimmerfest.
The formula to derive the APR from Money Factor: MF * 24 * 100 = APR
.00090 * 24 = 2.16 % APR
Each security deposit takes .00007 off the Money Factor. Max 7 MSD: 7 * .00007 = .00049
((.00090 - .00049 = .00041) * 24) = .98 % APR! umm.... I don't think that BMW will allow this. You might want to ask the folks over in Ask-A-Dealer subforum in bimmerfest.
Contributors
Joined: Apr 2005
Posts: 7,363
Likes: 1
From: San Diego, CA
My Ride: 2007 E63 AMG | Obsidian Black | Schwarzes Nappa | Black BirdEye Maple | Premium II Package | Electronic Trunk Closer | Parktronic
Engine: RPi/Powerchips custom ECU tune, RPi Ram Air Kit (BMC filter, scoops), RennTech Sport exhaust, secondary cats, charcoal and resonator delete, custom AAA x-pipe
Exterior: 50% side windows / 35% rear window Formula One Pinnacle Series | Flat AMG hood emblem
Suspension: Renntech Lowering Module
Wheels/Tires: Radenergie R10, Falken FK452 245/30/20, Yokohama ADVAN Sport 285/25/20
-----------------------------------------
2005 545i Sport SMG | Ti Grau | Schwarzes Dakota | Anthracite Maple | Logic 7 | Nav
Engine: Custom AFE CAI, Superchips ECU remap, Sprint Booster, RDSport Dual Exhaust Conversion with Quad Pipes and X-pipe, 3 resonators deleted, 90mm tips!
Exterior: M-Tech Aero kit | M5 Mirrors | M5 Rear Bumper | Trunk Lid Finisher | Vorsteiner decklid spoiler | 50% Formula One Pinnacle Tint
Suspension and Brakes: Bilstein PSS9 coilovers, JBT BBK: 16" cross-drilled rotors, 8 piston and 15" cross-drilled rotors, 4 piston
Wheels: VIP Modular VR 02 20x9F, 20x10R | Toyo T1R 245/30/20F, 285/25/20R
Lights: PIAA 4150K Xtreme White Plus fog lights, AIB v3
MOST IMPORTANT: Hardwired V1; =)
ED Date: 4/7/05, Re-delivery date: 5/21/05
Originally Posted by Ray S' post='387002' date='Feb 2 2007, 08:54 PM
vegastrashed,
Please forgive my rudimentary understanding of this issue but...if I understand this correctly if you do the MSD x 7 you will reduce your monthly payment and the MSDs will also be refunded to you at the end of the lease??
So what would make more financial impact on a lease:
Putting $3500 towards cap cost reduction or
Putting $3500 (monthly payment of $500 x 7) towards MSDs to lower the MF??
thanks for the link
Ray
Please forgive my rudimentary understanding of this issue but...if I understand this correctly if you do the MSD x 7 you will reduce your monthly payment and the MSDs will also be refunded to you at the end of the lease??
So what would make more financial impact on a lease:
Putting $3500 towards cap cost reduction or
Putting $3500 (monthly payment of $500 x 7) towards MSDs to lower the MF??
thanks for the link
Ray
Members
Joined: Nov 2006
Posts: 50
Likes: 0
From: Alabama
My Ride: 2004 BMW 330i, Jet Black, Black Leather, Performance Pkg, 6 speed manual transmission
On-Order: 2007 BMW 530i, Titanium Gray, Black Leather, Sport, Premium, Cold Weather, 6 speed manual transmission, Nav, HUD, PDC, L7, Sirius, Rear Heated Seats
The lowest money factor you can reduce to is .00005. I locked in the December 530i rate of .0005 and I am putting down 6 SDs to reduce the money factor to .00008 (.0005-.00042). I couldn't do 7 SDs because it would lower the MF to .00001.
Members
Joined: Feb 2007
Posts: 9
Likes: 0
From: Queens, NY
My Ride: Alpine White 2007 530xi Steptronic with Premium pack, Logic 7, CWP, PDC, HD Radio
Hi, new to the forum. Finding a wealth of information here as I shop for my E60.
Quick question:
Is it true that MSD cannot be done in NY?
Thanks,
Ash
Quick question:
Is it true that MSD cannot be done in NY?
Thanks,
Ash