[Hut]

* Each MSD will lower the lease rate by 0.1%
* Maximum allowed = 9x MSD

Currently, the 2013 3 series has 0.9% lease rate.

Anyone know whether we can do the full 9x MSD & reduce the rate to 0.0%?

Or does the system require to have something greater than 0.0%? Which means max is 8x MSD to drop it to 0.1% only?

[bobblehead]

I would not even give that much in SD (8 or 9) as this would be near $6000 or more You could take this $ and put that in the high interest saving account or invest it and probably get a much better return. Given the interest rate is already below 1% already.

[Hut]

But you can "earn" / "save" ~ 5-7% interest by doing MSD.

It's relatively risk free & non-taxable.

[Schmoops135i]

MSD is a good idea - although why would you want a 2013 this late in the year? Your payments will be mainly paying down the already depreciated portion of your car.

See what the dealer will do on a 2014 model - my guess is that your payments will not be significantly different as the residual value of the car will be much higher - which will offset the difference in interest rate. You will also get a few more options in the 2014 models.

[Hut]

3-4% spread on the interest rate.

The factory credit on 2013 covered part of the difference in the residual too.

[Schmoops135i]

Worth looking at 2014 models, you will find the insurance significantly(35%) cheaper as well for whatever reason.

[Ace_1]

Originally Posted by bobblehead

I would not even give that much in SD (8 or 9) as this would be near $6000 or more You could take this $ and put that in the high interest saving account or invest it and probably get a much better return. Given the interest rate is already below 1% already.

I totally agree with you bobblehead!

[bobblehead]

I would consider putting more MSD only if the interest rate is moderately high (say 4.9%) and by reducing say 1% on 10 MSD's (to 3.9%), it will make a bit of a dent into the amount of interest on your monthly lease.

[Hut]

Originally Posted by bobblehead

I would consider putting more MSD only if the interest rate is moderately high (say 4.9%) and by reducing say 1% on 10 MSD's (to 3.9%), it will make a bit of a dent into the amount of interest on your monthly lease.

Give a try. If you are holding all other variables constant. Saving 1% from 4.9% vs saving 1% from 1.0% comes out to be the exactly the same savings.

We are a bit off topic. Does anyone know whether BMW Financial Services will accept 0.0% in their system?

[gleung]

Yes, 0.0% is possible. I did the exact same thing on a F30 lease just a few days ago.

[335BOY]

Originally Posted by Schmoops135i

MSD is a good idea - although why would you want a 2013 this late in the year? Your payments will be mainly paying down the already depreciated portion of your car.

See what the dealer will do on a 2014 model - my guess is that your payments will not be significantly different as the residual value of the car will be much higher - which will offset the difference in interest rate. You will also get a few more options in the 2014 models.

If he is leasing it doesnt matter.