Quote:
Originally Posted by wtwo3
Are you perhaps confusing MSD's with downpayment? You're reacting as if they're the same thing. They are fundamentally very different, and typically speaking, one is considered a good idea for a lease while one is considered not very beneficial.
If I had put that amount down as a downpayment, my monthly payment would have been ~$541, however my effective cost of leasing would have been $24,376 (($541*36)+$4,900).
With MSD's, my effective cost of leasing is $23,688 ($658*36).
Think of MSD's as a guaranteed ~8.5% annual rate of return on investment.
Even without them my payment would be ~$695/month. Just remove the MSD's on the calculator. Remember, the 0.00128 MF I received is pre-MSD, meaning my MF after MSD's was 0.00093.
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No, I am not confused about MSDs and the initial discussion about apples to apples payment was exactly that - I would not pay almost the same amount for G20 as for an F80.
My payment of $850 on F80 (almost fully loaded) with ZERO down and ZERO MSDs is not much higher from the equivalently equipped G20 with nothing up front.
I understand how the MSD stuff works and it is beneficial but with risks — if you ever want to transfer your lease, you most likely lose it. If you total your car, you will lose it...
The bottom line is, your payment is lower because you used MSDs. You also could have done it with the down payment and then sell the car at the end of the lease and get some or all of it back...