Originally Posted by Patsc23
Is each deposit a cap cost reduction or a refundable deposit? And what is minimum of each deposit?
I guess im confused with why there are multiple deposits.
The deposits are refundable, and each deposit is equal to 1 month's payment. Since having this security deposit reduces the credit risk to BMW FS they offer a reduction to the MF for each deposit. Plus they invest the cash and make a return on it while they're holding it which offsets their cost as well.
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