xtremeflyer wrote:Exactly and I did the math in another thread, but if you put $4000 down to save .0007 money factor, you'd save $1080 over the life of a 3 year lease, but if you put that $4000 into a 3-yr CD, you'd only make $250 and have to pay income taxes on it. So it's almost a 25% return on your money.
Here are the rates - so let us say $4K takes you from Tier 4 to Tier 0. That is a saving of 0.0023 MF. That would save you some $500. But if you go only 1 Tier up - it is a saving of 0.0002 (or $50) and won't be useful.
I guess I'm not explaining how it works (I was only really interested in if NMAC does it), but adding security deposits has nothing to do with changing tiers. A security deposit is equal to 1 months payment, to the nearest $50. So if a payment is going to be $370, the sercurity deposit would be $400. Most leasing companies allow you to give Multiple Security Deposits (MSD) up to 7 times (Including Infiniti Finance, but I still can't find if NMAC does it). Each time reduces the money facor by .0001. In the case of Tier 0, the money factor is .00204, if you put down $2800 (or 7 x $400) your new money factor would be .00134 (3.2%)..
Over the course of 36 months, you'd save $1080 ($30/mo), meaning a 39% return on your $2800 investment. At the end of the lease, you'd get your entire $2800 back (minus damages) and as Boomer explained, it is not subject to loss in case of a total loss of vehicle in an accident, meaning you are better off putting the money towards the security deposit than you are towards the down payment.