Leasing - multiple security deposit
11-22-2001, 02:27 PM
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1999 BMW 323i
Leasing - multiple security deposit
I heard that MB Financing also allows multiple security deposits (MSD), which bring the monthly lease payments down. I also remember that BMW's MSD was bringing leasing price significantly down, at about 40% return for a maximum MSD (like one puts $4,000 in MSD and gets $1,600 savings for a 36 month lease period). At this time, I would certainly do that, because that would be more-than-good return...
Does anyone here have any experinece with this? Can you share your lease deal info?
PS: I will be ordering a 6-speed, silver C230K with C7 for Christmass because the lease on my 99 BMW 323i ends on April 2, 2002 (dealer told me that there is a 3-month wait for it in Miami). Any leasing info is appreciated, and may help me recover from the Nov 1 shock, when the lease price jumped from a cool $414 to $497 on mbusa web site!
Does anyone here have any experinece with this? Can you share your lease deal info?
PS: I will be ordering a 6-speed, silver C230K with C7 for Christmass because the lease on my 99 BMW 323i ends on April 2, 2002 (dealer told me that there is a 3-month wait for it in Miami). Any leasing info is appreciated, and may help me recover from the Nov 1 shock, when the lease price jumped from a cool $414 to $497 on mbusa web site!
11-22-2001, 03:17 PM
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The best way to look at it is in terms of the total cost of the deal. There are a number of good sites that will explain the "real" cost of leasing so you can work it out for yourself. I would recommend:
http://www.leaseguide.com/
I also have an Excell spreadsheet that allows you to play with the numbers. E-Mail me if you are interested.
Martin
http://www.leaseguide.com/
I also have an Excell spreadsheet that allows you to play with the numbers. E-Mail me if you are interested.
Martin
11-22-2001, 06:02 PM
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2020 Audi R8 V10, 2016 AMG GTS, 2018 E63S Edition 1, 2018 Porsche GTS Cab, 2012 C63 BS
I hope this helps...
Most banks offer MSD's including MBCC. MSD's lower your lease SCF (Service Charge Factor) which inturn lowers your monthly payment. Lets say you have a payment of $295.00 and you want to do MSD's. Your MSD's would be based on $300.00 as they must be rounded up from your payment to the next increment of $25.00. Most banks don't require a security deposit at all if you have good credit so for each security deposit you have (in increments of $300.00) you will be able to lower your SCF by .0001- Lets say MBCC is offering a .00250 SCF on your $295.00 payment and you have $900 in MSD's; you would be able to lower your SCF to .000220 which would lower your payment based on your Net Capitalized cost and Residual. Your SCF amount is derived by adding the Net Cap of your lease plus the residual and then multiplying this number by the SCF- This is your increase in payment from the depreciation amount.
I am not sure what MBCC's max is on MSD's but most banks allow up to nine and there of course are many loopholes and restrictions but the above is a basic example of how it works. I like MSD's because the money you put in doesn't get sucked into the depreciation like a cap cost reduction does and you get your money back at lease term. Granted, a cap cost reduction will do more to lower your payment than an MSD- it all depends on if you have money that you don't need right away.
Most banks offer MSD's including MBCC. MSD's lower your lease SCF (Service Charge Factor) which inturn lowers your monthly payment. Lets say you have a payment of $295.00 and you want to do MSD's. Your MSD's would be based on $300.00 as they must be rounded up from your payment to the next increment of $25.00. Most banks don't require a security deposit at all if you have good credit so for each security deposit you have (in increments of $300.00) you will be able to lower your SCF by .0001- Lets say MBCC is offering a .00250 SCF on your $295.00 payment and you have $900 in MSD's; you would be able to lower your SCF to .000220 which would lower your payment based on your Net Capitalized cost and Residual. Your SCF amount is derived by adding the Net Cap of your lease plus the residual and then multiplying this number by the SCF- This is your increase in payment from the depreciation amount.
I am not sure what MBCC's max is on MSD's but most banks allow up to nine and there of course are many loopholes and restrictions but the above is a basic example of how it works. I like MSD's because the money you put in doesn't get sucked into the depreciation like a cap cost reduction does and you get your money back at lease term. Granted, a cap cost reduction will do more to lower your payment than an MSD- it all depends on if you have money that you don't need right away.
