Originally Posted by AGS
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.
Interesting stuff. So am I correct in equating ED with 7 security deposits to be appx 3.02% financing?