# BMW X6 MSD's - trying to figure out if worth it

OK, I am so not a math major. X6 M60 3 year/12K lease (selling price of \$102,525 with all my options and dealer discount) with a .00240 MF, reduced by .00006 for each MSD up to 7. (About \$12,950 in MSD’s). Results in about a \$2,546 reduction over 3 years at \$0 down. I have the cash to do this with no problem. I currently earn about 5.23 % APR on my cash in the bank (I believe compounded monthly). Payment reduced to about \$1814/month including tax. Leasehackr score of 5.2 years. All the posts keep saying “do the math”. Sorry, consider me stupid, but not sure how to calculate if I am doing better keeping the cash in the bank or doing MSD’s. I’ve looked for calculators, and so far, if I am looking at a correct calculator, it seems like I may be about \$400 ahead with the MSD’s over 3 years.

I have seen so many posts talking about 8-10% return on MSD’s. That does not seem to be the case here?

Disclaimer: also not a math whiz.

I think that the 8-10% return (and my memory is that the posters have usually stated that the return is more like 20–25%) is over the duration of the lease, not per year…?

Sorry but this looks like a terrible deal. You can probably get far better numbers on the X7 as well.

You should negotiate hard or go through a seasoned broker on LH.

You are getting about a 6.5% annual return on MSDs if your numbers are right.

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12,950 * (1.062)^3 = 15,511
If you invest in something that pays 6.2% APR you will net (15,511 - 12,950) = 2,561 which is close to your MSD will net you (2,546). So a little under 6.2%.

Dont forget, you have to pay taxes on that investment return, so the equivalent rate of return is higher once you factor that in

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Thanks everyone. It’s still a hunk of cash to tie up when we don’t know what the next few years brings. I get a lower monthly with a \$5,000 drive off (about half of which is cash up front). I guess I’ll talk to my accountant.

Also, there is very little allocation of X6 M60is in the Western Region right now. Well under 50. I could do much better on an X5 or X7 because there are so many available, but neither is a vehicle I want.

The guy I work with is excellent and has a very good reputation.

Of course you do. Money you dont get back will lower your monthly, but raise your cost, compared to money you do get back.

Are you trying to minimize cost or cashflow?

This is a really, really bad deal. Forget the MSDs.

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After thinking about it this weekend, I guess I changed my mind to minimize cash flow. I called my bank and my annual effective rate is actually 5.4%. But I can touch my money whenever I want. Approx. 1% gain (yes, I know a bit more with the tax consideration) isn’t life changing.

At least half of that drive off I have to pay anyway. So there I am.

FYI - that MF is marked up, so you’re really getting less than 2% off the car. Base MF is 0.0022.

I decided to do that, but why your comment? On current factory allocations of this model, I don’t believe there are any super deals to be had. BMW’s own “special” on this car is not very well equipped, with double the drive off and low mileage.

There are only 2 X6 M60is on dealer lots within 100 miles of me.

So maybe go through a broker and order exactly what you want AND save a good amount of cash?

Your ‘guy’ may be really good, but you are about to help put his kids through college. Or Medical school maybe. For the price you are paying, at least get him to give you the base MF.

My guy is completely transparent with me. I see all the deal screens. This is not the first time we’ve worked together. You really think a broker is going to get me more than \$3,000 off MSRP plus base MF on a car that is very hard to get? We have discussed all of this. The leasehackr calculator with the base MF is not that much different. \$1,167 over the 36 months.

I’ve submitted the same build request to a broker my friends work with quite successfully. I’ll see what he comes up with.

@ZZAutoDeals this seems like it’s right up your alley

Thanks @Moiz_OcAutoLease but I think OP is already getting a pretty good discount for an X6. It’s a pretty rare car. Best of luck, OP.

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Thank you. I’ve made the deal. I trust my guy. We’ve done several deals together and I always research the hell out of them. If I wanted an X5 M 60i, this would be a different conversation. But I want the car I want and so I know I have to do a little bit more to get it. And I’m OK with that.

I have two of these at base MF and 6.25% off on the east coast, just an fyi.

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