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2010 2011 BMW 5 Series Forum F10 Multiple Security Deposits |
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07-30-2012, 01:44 AM | #1 |
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Multiple Security Deposits
Hello all,
I've seen some conflicting information on when you would NOT get your multiple security deposits back. Do you lose your security deposits if you total the leased vehicle? Thanks! Realbass1 |
07-30-2012, 07:45 AM | #2 |
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No... I have been told no matter what happens to the vehicle this security deposit is refunded. If not it would totally defeat the purpose of it and would no longer make any sense from a risk to reward perspective. Following the similar logic as to why most people put as little down out of pocket on a lease. You lose it all if the car gets totalled or stolen and not recovered.
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07-30-2012, 03:27 PM | #3 |
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From what I know, dealerships can deduct from your deposit during the end of your lease if the car isn't in good condition as per return guidelines.
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07-30-2012, 03:32 PM | #4 |
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^^ makes sense to me. Why else would they do it if you are guaranteed back all the money regardless.
My dealer told me MSD isn't even offered for NY residents.
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07-30-2012, 04:40 PM | #5 |
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For what it's worth, BMW Canada according to my dealership does not generally allow MSD on their vehicles
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07-31-2012, 06:35 AM | #6 | |
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Your dealer is correct... New York does not allow the MSD's but you can go to an out of state dealer to take advantage of it. I live in NY but just got my car from a NJ dealer so I could use the MSD program. The best way to think about MSD's in my opinion is comparing it to purchasing a bond. You are giving BMW a lump sum of money for a period of time. Your return on investment is the amount of money you save each month by the lower interest rate that BMW leases the car out to you for. Now whether that return on investment makes sense is completely on an individual basis. I do not believe there is any risk in BMW defaulting on this "bond" so your money is safe. The concept of them deducting from the MSD's if you bring the car back damaged is moot. With or without the MSD's if you bring back a damaged car you have to pay to get it fixed. Just my 2 cents or in this case a hell of a lot more since I opted for the max of 7 security deposits. |
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08-01-2012, 08:59 AM | #9 |
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Agree with all that was said. It is a security deposit and returned as long as you return the car without excess damages (which you are legally responsible to fix or pay to fix).
The effective ROI on multiple security deposits is about 11.5%. Try to find that in a CD or MMA. If you got the cash, it is a smart bet. |
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08-02-2012, 03:30 AM | #11 | |
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08-07-2012, 07:29 AM | #12 | |
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I had that exact situation when a friend took over my lease. The lease is taken over with all the original provisions but my friend is now the lessee. He gets the MSDs at lease end so he wrote a check to me for the MSDs. |
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