I had a finance guy at the dealership tell me they hardly ever do Multiple Security Deposits (MSD) on leases b/c it subtracts the basis points from the base rate of .0016 (instead of the specials rate of .00085), so if I did 9 deposits, it would lower my rate to .00088, which is higher than the specials of .00085 that are offered through regional programs...

But, I've read many threads and posts where people say they got less than .00085 by using the MSDs.

Can anyone else confirm or deny this to be true?

FWIW, I have excellent credit (750+)

 

Your base money factor is determined by your credit score and history with LFS. A 750 credit score qualifies you for Tier 1, which would be .00085. Nine multiple security deposits brings you down to .00076. Many on this site, myself included, have gone this route because the security deposits lower your monthly payment and are completely refundable and eligible to rollover to your next lease.

Sounds to me like your dealership might be inflating the base money factor for their own profit.

 

Carderoni, are you saying the each MSD is .00001? I've seen it as .00007.

 

Yes, that is correct - each security deposit lowers your money factor by .00001. If each deposit lowered it by .00007 then 9 MSD's would result in a 0.528% rate, which few have seen since the days of GM offering employee discounts to everybody. The best possible money factor is .00076 from what I understand.

 

I know each MSD is .00007 for BMW. I have seen the same from Lexus as well, but it may be regional. Many of the Lexus lease rates on Ride with G are much lower than .00076 with MSDs....

 

Leasing structures differ from brand to brand. The only way you might get a money factor under .00076 could be on a limited time deal, like the $349/month rates on bsse IS 250's going on now. Otherwise, nope.

 

Thanks for the info!