i was shopping for a nice lease to replace my wifey's RSX.
a sales person mentioned MSDs - multiple security deposits.
it works as a Cap Cost Reduction towards the car, but the difference
is that you get the money back since it is a sec. deposit.

the benefit is with $3800 as MSD, it lowers monthly lease payment by
$50/month. this would save you $1800 in 36 months which would be
seen as a better return in 3 years than a savings/money market account.

what do you people think of MSDs?

 

Seems fishy to me. Why not just take a 3 year lease, that has about a $14K depreciation, and put $14K down on MSD's? You would have no payments throughout the life of the lease and then you'd get all your money back at the end.

 

It sounds too good to be true. You have to ask yourself WHY would they do that. I worked F&I at a dealership a long time ago and there always had to be something in it for the dealership for us to do it. What would prevent them from KEEPING your security deposit for some mine transgression on your part? They need to find a way to use your capital (MSD) to make this work for them. Better read the fine print on this one...

 

I agree... If it quacks like a duck... It's probably a duck. Run away FAST!

 

Hmmm... that does sound too good to be true.

For my wife's 3.25i, I got a .0001 discount for every $400 security deposit. BMW lets you do up to 6 additional security deposits. I did that, and calc a 15% return on my investment. Not outstanding for a 2 year investment, but much better than a savings account, and just as secure.