Audi Lease question on MSDs

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1

Hey - question for those who’ve leased through Audi financial before.

I just closed a deal on a new lease earlier this week, signed paper work and everything. Dealer just called to say they made an error on the MSD deposits and that I’ll need to resign + leave more in deposit.

He is saying that in order to get value of 9 MSDs lowering interest rate I will actually need to leave 10. Doesn’t make much sense to me, can anyone confirm this is how Audi financial handles them?

More detail - my payment is 640/ month. I left $6075 in MSD ($675 x 9) at original contract signing. They are now saying they need 1 more deposit to secure MF reduction of .00058 (buyrate) to .00013 (MF rate assuming 9 MSDs in leasehackr calculator)

Thoughts from anyone?

2

They’re correct, you have to pay for 10 to apply 9. You will receive the amount of 10 back at lease end. Max reduction is still .00045

3

Why is each security deposit $675 instead of $650? Doesn’t AFS round up to the next $25 (or $50) based on post-MSDs monthly?

4

Sorry, didn’t read all the way through.

Each payment is rounded to the nearest $25 increment. $640 (including tax I assume) would be $650 per, $6500 total MSD’s for a .00045 reduction.

5

Thanks all for quick responses!

According to the dealer they rarely do MSDs and I’ve already gone through a few iterations of getting the paperwork right with them.

I had the same question on what the MSD amount should be. He mentioned rounding to nearest $25 but not clear why they were using $675 as deposit amount. The payment amount on my contract is $642 so it sounds like I should make sure they are using $650 X 10.

Thanks!

6

Is $640/month all in?

If not- as @DonnyAudi stated, it’s based on post-tax monthly rounded up.

It’s a question about 10 vs 9 MSDs. I have done 3 deals at 2 different Audi dealerships in the last 2 months and 1 charged 9 MSDs and 1 charged 10. I was told that if you did 9 only- AFS wouldn’t fund the deal- however, no issues.

Others on the forum here have also had varying experiences 9 vs 10.

7

Yea - I just did the 10. The 675 SD amount was a mistake on dealer’s part.

Original = 675 x 9 = 6075
New / Correct = 650 x 10 = 6500

I confirmed in both cases that the amount was clearly showing as “refundable deposit “ on the sheet before signing. The first time they showed paperwork, I think it was mis-coded as customer cash / down payment so I wanted to make sure they were handling correctly.