550i European Delivery Lease
05-21-2011, 09:55 AM
#21
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Multiple security deposits are probably the worst return on your money you can actually get. The return is whatever money is saved by lowering your MF which is much much much smaller than taking that same amount of money and sticking it into a conservative investment for 3 years. Probably 3 or 4 times less.
It is basically a way to sucker people who do not know any better into giving bmw your money to use for 3 years and make a big profit on it, just like a bank. Any savvy finance minded person should know better and take your money elsewhere. The drop on the MF is minascule compared to returns elsewhere
It is basically a way to sucker people who do not know any better into giving bmw your money to use for 3 years and make a big profit on it, just like a bank. Any savvy finance minded person should know better and take your money elsewhere. The drop on the MF is minascule compared to returns elsewhere
Payment without MSD: $834.61 (incl tax)
Payment with: MSD: $773.81
Savings over 36 months: $2188.81
Total amount invested in security deposits = 7 * $800 = $5600
(refunded at lease end)
Total return: 39%
Compound annual return: 13%
Please tell me where there are FIXED returns in the market that high? You may be confused with capital reductions. These are a bad idea from multiple fronts. Security deposits are fully refunded at lease end.
p.s. I work in finance and I'm an engineer
05-21-2011, 07:00 PM
#22
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My Ride: 2006 BMW 550i
Hate to disagree but this absolutely untrue. In fact I would give BMWFS all the money I have to get a fixed return like this. Here is the math on my next car (550i MSRP @ 77k with Euro delivery at $1k over cost, loyalty bonus, buy rate MF, BMWCCA, and MSDs):
Payment without MSD: $834.61 (incl tax)
Payment with: MSD: $773.81
Savings over 36 months: $2188.81
Total amount invested in security deposits = 7 * $800 = $5600
(refunded at lease end)
Total return: 39%
Compound annual return: 13%
Please tell me where there are FIXED returns in the market that high? You may be confused with capital reductions. These are a bad idea from multiple fronts. Security deposits are fully refunded at lease end.
p.s. I work in finance and I'm an engineer
Payment without MSD: $834.61 (incl tax)
Payment with: MSD: $773.81
Savings over 36 months: $2188.81
Total amount invested in security deposits = 7 * $800 = $5600
(refunded at lease end)
Total return: 39%
Compound annual return: 13%
Please tell me where there are FIXED returns in the market that high? You may be confused with capital reductions. These are a bad idea from multiple fronts. Security deposits are fully refunded at lease end.
p.s. I work in finance and I'm an engineer
05-21-2011, 08:50 PM
#23
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Location: New York, New York
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My Ride: See my signature
Hate to disagree but this absolutely untrue. In fact I would give BMWFS all the money I have to get a fixed return like this. Here is the math on my next car (550i MSRP @ 77k with Euro delivery at $1k over cost, loyalty bonus, buy rate MF, BMWCCA, and MSDs):
Payment without MSD: $834.61 (incl tax)
Payment with: MSD: $773.81
Savings over 36 months: $2188.81
Total amount invested in security deposits = 7 * $800 = $5600
(refunded at lease end)
Total return: 39%
Compound annual return: 13%
Please tell me where there are FIXED returns in the market that high? You may be confused with capital reductions. These are a bad idea from multiple fronts. Security deposits are fully refunded at lease end.
p.s. I work in finance and I'm an engineer
Payment without MSD: $834.61 (incl tax)
Payment with: MSD: $773.81
Savings over 36 months: $2188.81
Total amount invested in security deposits = 7 * $800 = $5600
(refunded at lease end)
Total return: 39%
Compound annual return: 13%
Please tell me where there are FIXED returns in the market that high? You may be confused with capital reductions. These are a bad idea from multiple fronts. Security deposits are fully refunded at lease end.
p.s. I work in finance and I'm an engineer
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