Never done MSDs before. Can someone please point me how those should be displayed on my lease agreement? Is it supposed to be spelled out as “Multiple Security Deposits”?
Also, does BMW round your AFTER-tax payment to the nearest $50? (e.g. monthly with tax is $210 => 1 MSD is $250)
The dealership I am working with says that MSD is calculated by taking the payment x’s the number of MSD’s and then rounding up at that point.
Thank you!
It’ll show on your lease agreement as Security Deposit and will appear that way in your online account as well after it is created.
It is your after-tax payment after reducing the MF, rounded up to the nearest 50. So on my wife’s X1, the after MSD payment including tax is $349, so they rounded up to 350 and multiplied that by 7 for a total of $2450 in MSD.
Okay this general manager INSISTS on his way of doing it (multiplying monthly x 7 and THEN rounding to the nearest 50)
What do I do? Is the contract going to be rejected by BMWFS if he does it this way? I already mentioned the fact that I think he’s calculating in wrong, but he is 100 % sure he is not.
Can’t say - but I’m 95% sure that is not correct. Most likely the contract would be rejected because enough wasn’t collected in security deposits and you would need to re-sign and give them the additional funds.
I believe with BMWFS once you apply for credit, the rates and incentives are locked in for a period of time so I think the deal wouldn’t change otherwise.
Ask the dealer to call BMW FS
IDK if they’ve tightened things but back in the day it was either BMW or MB that basically seemed to accept whatever the total MSD $ amount…people were doing pre/post MSD payments, pre- and post-tax…4 variations right there.
Your dealer’s one is a variation I’ve never heard of and doesn’t sound right…but what’s the worst that can happen? You re-sign with the same terms but with a proper MSD amount which is slightly higher (say 225 * 7 = rounded to 1,600, vs. rounded to 250 * 7 = 1750)
Thank you all of your help. Mods can close this thread.
SPOILER ALERT: Hacker deal inc. 
So what was your deal?
I’ll create a new post and add it to Trophy Garage once it’s finalized (hopefully without any problems)