Except this is LeaseHackr, not WhatTheHeartWantsShoppr.
And BTW the worst time to get a car: when the SO wants/needs one.
Absolutely horrendously wrong advice!!! MSDs in this scenario would save about 10% monthly which annualizes to almost 13% and it’s guaranteed tax-free income. Care to share which bank offers 13% guaranteed tax-free return?
How did you get 13% returns?
By using math
your math need math. 13% never saw that.
Shit you maybe right. I have never seen this kind of benefit on MSD. The MF was so low I thought msd would not make sense. Why the heck would BMW do this? Makes no sense.
I am getting the same car. I will do that
It’s as easy as putting your deal into the calculator and comparing with and without msd. Can’t just look at the MF and assume one way or the other.
Generally speaking, MSDs generate a 27-42% total ROI, depending on the car’s MSRP and exact deal structure. So roughly 9-14% a year on a 3-year lease. Here’s an example for an X7 lease I just did for someone and the savings it generated with MSDs:
2026 X7 xDrive40i ($102k MSRP)
39-month lease
$1079/mo+tax ($1185 incl. 9.75% tax) (no MSDs)*
$988/mo+tax ($1085 incl. 9.75% tax) (w/ 10x refundable MSDs @ $11,000)*
So here, the payment is reduced by $100/month on a 39-month lease ($3900 saved over the life of the lease). That is a 35-36% ROI ($3900 / $11000). So almost 12% per year in this case. And that is tax-free guaranteed money in your pocket. That’s about the same as earning a 15-16% return in the market before tax.
MSDs almost always make sense, except when it’s capped due to an already really low MF. Still worth it from an ROI standpoint even in those cases, the savings is just not a crazy high amount dollar wise.
That would be the best but I can get lazy. I never looked at deals this closely. Just a BMW enthusiast
It’s actually a little bit less but it’s not off by much as I shot from the hip assuming $75 a month savings when it’s really only $72. Translates to 12.34% annualized.
And the calculation is actually really simple: take monthly savings times 12 divided by total security deposits. So in this case it’s 72 x 12 / 7,000 = 12.34% annual.
Have you ever seen this much saving from MSD. 7% was the best.
Yep, I’ve been preaching it for a long time and you are not the first person to question it and have a mini epiphany once they crunch the numbers. Obviously, the result varies depending on the program but it’s been in that ballpark on the I series for years now, same for plugins before.
I leased the i5m60 last year and the saving resulted in not even a 1% savings. Thanks for pointing this out.
And I leased a few i5 m60s myself or helped others. It’s always been like that. Here’s one of my calculators from December 2024 when 7 deposits was max. The number of deposits does not matter as each one produces the same result, it’s only the dollar amount that will change proportionately with the number of the deposits. You either made the wrong calculation yourself or were misled by a salesperson thinking that each deposit saves about 1% and putting down 7 deposits only results in 7% savings which is clearly not the case. It’s the return on those deposits that matters.
Misled likely. Barely a change in monthly payment.
It’s not used it’s pre-owned
And brand spanking new to her. 
Car manufacturers have done a remarkable job convincing people they need new. Every car is a used car the second it’s driven off the lot. I’ll happily let someone else take the initial hit while I slum it in a car with 2000 miles on it at 1/2 the lease price. 
Is it still “new” if someone test drove it before you?
I couldn’t care if it has some light use (loaner etc) for the right deal, so long as there’s warranty.
The i4 is about to be phased out, so I personally wouldn’t bite unless the deal is stellar. i3 on it’s way, CLA released, C-Class EV on it’s way, Audi S6 2027 inventory trickling in. If you want a non-SUV EV, hang on for six months if you can, we’ll have far more options rather than paying a premium for a vehicle that leased for far less a couple years ago and is on its way out.
Just signed a deal using 10 msd. Got under 10% return. Also I did not use NPV which would have brought it lower. Considering risk it made sense.
FYI I gave been getting 16% on my managed accounts but there is always risk in those accounts. We could break or boom economically. ~10% worked for me.