BMW Multiple Security Deposits (MSD) for leasing discontinued as of May 1, 2017

[DS_BMW]

Originally Posted by ///M4ster Yoda

BMW is losing its edge over the other Germans by their own doing. ED discount is less. Maintenance is worse (no brakes). No MSDs. Shitty residuals. Wife and I are gonna take a hard look at some of the other brands when the time comes. This wouldn't have crossed our minds a year or 2 ago. We've had a long run of BMWs that might be ending.

Still what German brand has better residuals than BMW?

[Eau_Rouge111]

Originally Posted by Mo@BMWofFairfax

Looks like BMW wants to stop people from leasing their cars, and more people buying them.

Residuals have been very poor lately.

This reminds me of the housing crisis of 10 yrs ago...auto makers doing the most they can to push product out the door like mortgage brokers were doing to sell more homes...getting rid of every and all checks and balances...

[geddylee]

They better start making better cars!

[///M4ster Yoda]

Originally Posted by geddylee

They better start making better cars!

I was thinking that also. Don't get me wrong I like our current stable but BMW can do better.

[amw896]

Originally Posted by Jz

Residuals for the entire industry is decreasing due to the glut of (lightly) used cars. MF are going up as fed interest rates go up. It's amazing that people forget economic factors outside of just BMW.

thank you!

[White340]

I would happily buy my car if it had the reliability of a Lexus. If they really want to push people into buying, they better get their reliability up!

Edit : Even if things broke once in a while, the enormous cost to fix anything makes wanting to own this car a massive liability. I had a headlight replaced which the dealer said would have cost me 2k out of pocket. That's just ridic for one headlight, regardless of whether it is LED or not.

[dkhm3]

Originally Posted by ah3nyc

I wonder if bmw will regret this once they have to payback millions to all of use msd customers and on top of that lose many more potential customers used to leasing with msd!! Bmw leases are no more competitive. Buying that Porsche instead finally has become reality for someone like me.

I wonder if you have had any experience at a porsche dealer.

if we had leased instead of purchased my folk's '17 Cayenne GTS (msrp 120k) it would have been more 60% more a month vs my X5M.

Porsche is making over 17k a car for a reason.

http://www.autoblog.com/2017/03/21/p...rofit-per-car/

You have been enjoying bmw rates for a long time, things change and incentives go up and down based on sales and inventory.

[hirkaismyname]

I think it might be business strategy. Risk reduction to some degree by "trading up" for heavy cash transactions since the cost of debt is slowly increasing (LIBOR). Also an indicator of an impeding economic dip (seeded from the used car market..."glut" YUP). As for the strategy itself, I'm sure, internally, BMWFS conducted somewhat of a "hold/sell" analysis before eliminating MSD; or, this was just phase 3 of the plan's outset (residuals, MF, elimination of MSD). I predict the monthly incentives will go away, and higher downs payments will be required, and BMWFS pay periods to decrease...effectively increasing monies owed/month and decrease in book value for trade-in's and consequently glutting the market even more. :/

[M2PDX]

Originally Posted by geddylee

They better start making better cars!

Exactly.

I purchased mine, so MSDs didn't matter.

But the combo of that, continued HORRIBLE steering (read any review of the new 5 Series), paying extra for what should be standard features on high end M cars, reduction of the ED discount, and a general move towards soft mainstream cars versus the "ultimate driving machine," and it gives me pause. The M2 seems to be the only remaining true drivers car. The M760 looks fabulous, but it's huge and expensive.

For the first time since 1995, and after 6 BMWs in row, I am a little disenchanted.

[The Automotive Enthusiast]

Originally Posted by geddylee

They better start making better cars!

Before my parents leased their Mercedes, they visited at least four different dealerships. Non of the sales associates knew what an MSD was. Mercedes doesn't even advertise it.

The kicker though? Mercedes allows 10 MSD payments compared to BMW's 7, which is awesome.


P.S. Residual for a C300 4 Matic was 62% in December.

[Falafel Combo]

Originally Posted by ah3nyc

I wonder if bmw will regret this once they have to payback millions to all of use msd customers and on top of that lose many more potential customers used to leasing with msd!! Bmw leases are no more competitive. Buying that Porsche instead finally has become reality for someone like me.

Really? That's the only thing keeping you from buying a Porsche?

[ah3nyc]

Originally Posted by dkhm3

I wonder if you have had any experience at a porsche dealer.

if we had leased instead of purchased my folk's '17 Cayenne GTS (msrp 120k) it would have been more 60% more a month vs my X5M.

Porsche is making over 17k a car for a reason.

http://www.autoblog.com/2017/03/21/p...rofit-per-car/

You have been enjoying bmw rates for a long time, things change and incentives go up and down based on sales and inventory.

I would just buy CPO Porsche honestly. No point to pay more to lease a BMW at that point. I know Porsches are more money. However rather than attack me. People should petition BMW.

[ah3nyc]

Originally Posted by Falafel Combo

Really? That's the only thing keeping you from buying a Porsche?

I rather take my msd add some money and buy cpo Porsche than pay extra for bmw. Bmws have lost the driving feel they once had.

[midwest 340xi 6sp]

As others have already said, the used car market is evolving rapidly. The impact of that inventory glut is haloing to new car sales.

And don't think for a minute that all the mfgrs don't have their eyes to autonomous vehicles and its eventual impact on the market too.

[dkhm3]

Originally Posted by ah3nyc

I would just buy CPO Porsche honestly. No point to pay more to lease a BMW at that point. I know Porsches are more money. However rather than attack me. People should petition BMW.

I am not attacking you, I am stating a point that I don't think you have done the research on what a p car leases for. You cannot blame a company for trying to make as much as they can, unless they drag you out of the dealership and break your face, of course.

[r20]

Originally Posted by stealth-twntrbo

Multiple security deposits discontinued! Multiple Security deposits end May 1st 2017.


Attachment 1608318

BMW keeps f**** over customers, many of them loyal, multiple car leasers... makes it hard to stay with them.


I have two teslas on order.... maybe time to say goodbye to BMW

[ah3nyc]

Originally Posted by dkhm3

I am not attacking you, I am stating a point that I don't think you have done the research on what a p car leases for. You cannot blame a company for trying to make as much as they can, unless they drag you out of the dealership and break your face, of course.

I know Porsche leases are 2x usually what BMW would. Financially to buy a new BMW doesn't make sense you'll lose 50% in 36 months. Therefore the numbers to buy cpo Porsche makes more sense as p cars hold don't depreciate at the rate bmws do.

Yes financially I don't think it will increase bmw dealer profits. If leases creep up in price why would someone go for a car that is same price as say other manufacturers say even Infiniti , Lexus, Mercedes, Audi all who offer msd. Bmw sales increased in past because they had offers that beat out brands like Toyota, Honda for leases. Let alone luxury car brands. I love bmw but they really aren't being wise. Lowering ED discount, eliminating certain maintenance coverages, not doing ude codes, not offering loyalty often. They have diluted the brand, made the cars way too soft and from business perspective they will pay the price. Cost conscious buyers will not lease from them again.

[3PedalMINI]

I wonder why. I've been reading about the possible car loan bubble crisis that is looming and wonder if this has something todo wit it. Although one one think BMW would be offering this option more as someone that is financially smart enough and able to put down 7 MSDs they generally won't be defaulting on their commitment.

Or maybe that's the point. They aren't making enough money on the loans that people put the MSDs down on and figure they are going to pay anyway!

I've also read they are tightening credit restrictions for car purchases. Having an 800+ credit score I doubt it effects people like us but I wonder what they are/will be?

[r20]

Originally Posted by Djvolume

Although I'm a bummer fan, This would be an amazing opportunity for Mercedes to acquire customers if they play their cards right

It wouldn't even be hard... every MB looks better than every equivalent BMW...


But the drive though..

Bring on autonomous driving!

[r20]

Originally Posted by 3PedalMINI

I wonder why. I've been reading about the possible car loan bubble crisis that is looming and wonder if this has something todo wit it. Although one one think BMW would be offering this option more as someone that is financially smart enough and able to put down 7 MSDs they generally won't be defaulting on their commitment.

Or maybe that's the point. They aren't making enough money on the loans that people put the MSDs down on and figure they are going to pay anyway!

I've also read they are tightening credit restrictions for car purchases. Having an 800+ credit score I doubt it effects people like us but I wonder what they are/will be?

But we are giving BMW an interest free loan for 4000-7000 bucks.

Tesla would kill for that position.

[ah3nyc]

Originally Posted by jxr006

But we are giving BMW an interest free loan for 4000-7000 bucks.

Tesla would kill for that position.

Wait until they start to pay out millions back. How will the balance sheet look then?? Someone must have been hired recently in Bmwusa and made a stupid decision. We have been giving them thousands every time we leased to use as they please. Free money. The amount of interesting mf won't makeup lose in end of people switching brands. C43 or 63 looks tempting now!!

[ASAP]

fwiw bmw leases are way too cheap and this is one of the downfalls of a company... bmw chased sales numbers and allowed almost anyone to get into any car

comprable audi and mb models were far more $$$ to lease... i see this is as a good thing and may help the brand image a bit