How to Lower the Car Lease Payment of a BMW Without Making a Down Payment

Making multiple security deposits is a great way to reduce vehicles' monthly lease payments without making a down payment.  The main benefit of making multiple security deposits on a lease instead of a down payment is unlike down payments, you actually get your security deposits back at lease-end.  Here's how it's done.



Step 1: Decide what BMW model you want.

Step 2: Decide how much you want to pay for it.

Step 3: Research what sort of lease program is available on it.
You should be able to get a good idea of what the current lease money factors and residual values are for the BMW car or truck that you are interested in by visiting the corresponding discussion in the "Prices Paid: Buying & Leasing Experiences" forum. If that information is not available there, you can always call around or e-mail several Lexus dealers in your area and ask them what the current lease program is like for the model that you want. It is a good idea to ask several dealers because not only is there a decent chance that some will not respond or will not want to tell you, but you can compare the answers that you receive to each other to make sure that you are being told the truth.

Step 4: Decide how many additional security deposits you want to make.
BMW Financial Services provides consumers with a reduction of .00007 in the money factor that is used to calculate their vehicle's monthly payment for every additional deposit they make, up to a maximum of seven additional deposits (a total reduction of .00049). Each security deposit is equivalent to your vehicle's original monthly payment rounded up to the nearest $50 increment.

Step 5: Determine how much you will save by making additional deposits.
Now that you know what the current money factor and residual value are for the vehicle that you want and what sort of reduction you will receive for making multiple security deposits, you can use the Edmunds.com lease calculator (link) or the formula that is outlined in the following guide (link) to help you to play around with different scenarios to see what impact making additional deposits will have upon your vehicle's lease payment. The exact impact depend upon a number of factors, including your vehicle's MSRP, its selling price, how long you want to lease it for, and its mileage allowance.

Step 6: Lease and Enjoy.
Once you hae thoroughly researched your lease, make your multiple security deposits and enjoy your new vehicle knowing that you are getting it for a great payment and that you will actually get your security deposits back at lease-end.

Note: Unfortunately multiple security deposits are not allowed a few states, like New York.

Recent Comments (3 total):

More Buying / Selling