Multiple security deposits?

imola · #1 (**permalink**) 05-22-2007, 06:59 PM

does porsche usa allow multiple security deposits to buy down the MF?

I know bmw allows this and for each security deposit, you get 0.0007 lower mf, up to 7 security deposit.

tia~

**Interpol** · #2 (**permalink**) 05-22-2007, 07:48 PM

Do you mean for an auto lease? If so, it's not really a 'security deposit', since you're not getting that money back at the end of the lease - it goes to decrease the cap cost of the car. I haven't heard of a leasing company decreasing the money factor based on the amount of cap cost reduction, but I guess it would be possible.

Either way, this is a bad deal, as you are putting much more money at risk on a lease that you will not get back regardless of what happens.

**changw1** · #3 (**permalink**) 05-22-2007, 07:53 PM

Porsche financing does not require security deposit so I don't think you can do a buydown.

outie · #4 (**permalink**) 05-22-2007, 11:47 PM

Quote:

Originally Posted by Interpol

Do you mean for an auto lease? If so, it's not really a 'security deposit', since you're not getting that money back at the end of the lease - it goes to decrease the cap cost of the car. I haven't heard of a leasing company decreasing the money factor based on the amount of cap cost reduction, but I guess it would be possible.

Either way, this is a bad deal, as you are putting much more money at risk on a lease that you will not get back regardless of what happens.

BMW financial allows you to put down multiple security deposits to lower the Money Factor for a lease. You will get the deposits back at the end of the lease. It is not the cap reduction.

Porsche does not have this deal as far as I know.

imola · #5 (**permalink**) 05-23-2007, 03:26 PM

thanks for the info guys!

I should've made my question more clear. It's for lease, and the term is commonly know as MSD. it's not a cap cost reduction and you do get back all the money at the end of the lease.

Depends on the cap cost, it could be a quiet substantial saving. Much better return than regular money market and CD could give for the same amount of money.

too bad porsche financial doesn't allow it.

Thanks again!

**Midnight Blue** · #6 (**permalink**) 05-31-2007, 03:09 AM

Back in the early 90s I leased a BMW 5 series. At that time BMW allowed up to 10x the security deposit for the MSD option. Was a great deal at the time as the security deposits reduced the lease payment by more than I would have been able to earn by depositing the funds in the bank.