BMW MSD Program (January 2019)

I came across the actual BMW MSD program and thought I’d post for all to peruse.


i’m new leasing, can i get MSD if i want to lease a BMW?

yes its now for everyone.

@livesandiego Where is the MSD program listed on the BMW website? For the life of me I can’t find it or a link to it on the forum. Thanks.

It’s not listed on the website.

So where does one find the official posting?

It is more of a behind-the-scenes program BMW has. There isn’t much to it. Use the LH calculator and mess with the numbers to better understand the effects of each security deposit and how it relates to your monthly pmt.

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Is there any interest provided on this deposit?


You save on interest

That’s the entire point :slight_smile:

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I meant when we put security deposits of $x we get back $x+ interest. Do BMW also gives back interest on security deposit?

This is actually an interesting question.

Although there is not an interest paid per se for the security deposit, you are saving a certain amount every month due to the money factor buy down, which in turn could be considered the same as an investment interest payment. In short, you are paying less per month for the car, which effectively could be the same as paying more for the car without the deposit, yet getting a check every month for the investment return. There are a lot of ways to look at this (which can over complicate it), but the short story is that much of the time the effective rate of return is 10–12% (or much much higher). Most of mine have been north of 20%, and one of them was above 30%!

Dumb question: How do you find out if the MSD is refundable? (E.g., bad car accident)

The main scenario where they aren’t refundable is if you let the insurance lapse, total the car, and stiff BMWFS for an outstanding balance that’s equal to or greater than the MSDs.

But then you’ll also have a host of other problems.

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Some dealer claims that MSD is not allowed in its region. Is it true that MSD is only for certain regions? From the OP it seems like there is no regional restrictions for MSD program. In case that MSD is allowed to everyone, what does the dealer gain from lying about MSD? What would be a good way to convince the dealer to allow me to place MSDs?

Where are you leasing from/registering in?

I am leasing from NV and registering in CA

I know there’s no msds in ny dealerships, but there’s definitely msd allowed in california, did you try calling other nevada dealership’s to see if they allow msd?

A bit confused by the above…if you live in a state like NJ but get a vehicle from NY can you use MSD’s? The BMW lease sheet above shows security deposits cannot exceed 749 for NY dealers?

No, no matter where you live, you cannot use MSDs at an NY dealer (for any make). If you live in NY and buy in NJ, you can use MSDs.