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I think it might be business strategy. Risk reduction to some degree by "trading up" for heavy cash transactions since the cost of debt is slowly increasing (LIBOR). Also an indicator of an impeding economic dip (seeded from the used car market..."glut" YUP). As for the strategy itself, I'm sure, internally, BMWFS conducted somewhat of a "hold/sell" analysis before eliminating MSD; or, this was just phase 3 of the plan's outset (residuals, MF, elimination of MSD). I predict the monthly incentives will go away, and higher downs payments will be required, and BMWFS pay periods to decrease...effectively increasing monies owed/month and decrease in book value for trade-in's and consequently glutting the market even more. :/
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