I am wondering if anyone has had experience with leasing and using multiple security depsoists. What kind of difference did it make in your payment? did you have any trouble at the dealership?

-h

 

Most dealers have difficulty calculating multiple security deposits. For each additional security deposit your lease factor drops 10 basis points. The security deposit amount is equal to the monthly payment to the nearest $25. For example if your payment is $569 a month then the security deposits assessed at $575 each. Sometimes it is a good idea to use a small additional capitalized cost reduction to decrease the payment under the next lower $25 threshold which enhances the rate buydown leverage. So if you are near a $25 amount then try to get it lowered below that so you save 9 X $25 or $225 and get the same rate. Dealers would rather you left the rate alone and did a more conventional Cap cost reduction. If you have a lot of cash at your disposal that is not earning a high return then a multiple security deposit lease will save you money in the long run on lease charge.