First off, thanks for putting together this website and making it so simple to understand a rather opaque topic. Truly an amazing resource.
I wanted to get feedback on the following deal. The monthly payment feels about right, but the final MF provided by the dealer feels as if there’s been a miscalculation – it seems as if only one security deposit, rather than all of them have been counted into the MF.
2016 C300 (36 months / 7.5k miles)
Negotiated Selling Price: 40,550
FEP Discount: 2,000
Net Cap Cost w/ Acquisition Fee: 39,345
Residual (64% at 7.5k miles): 29,226
Final MF: .0012
Monthly Payment (incl. tax): $395
Based on what I’ve read, it seems like
Starting MF: .000154
MSD should reduce it by .00056 (.00007 x 8 security deposits) and
Autopay should reduce it by .0001
Final MF should be 0.00088
Monthly payment should be $372
Is there something that I am not accounting for correctly?
One quick clarification and one additional piece of info:
- Starting MF has an extra “0” It should be .00154
- Excellent credit
How much drive off here? $0?
So based on MSRP of $45665, cap of $38550, MF of 0.00012, res of 64%, and aquisition fee of $795 and 9% sales tax… and $0 drive-off.
I get $337.03 tax inclusive. Before tax it’s $312.07. If all numbers above are correct, my payment calculation should be within $1~2 from the dealer calculations.
If the MF is at 0.00088 and nothing else changes,
Payment comes out to $366.48 + tax (8% in my case) = $395.80
Again, within $1~2.
Thanks, Alan. I think this basically boils down to the dealer not factoring in all the reductions that come from Autopay and MSD. To keep things simple, can you confirm that I am correct in assuming 8 security deposits will result in a reduction of .00056 (.0007 x 8) to whatever the going MF is for my credit?
Also, can anyone here confirm that the going rate for a 2016 C300 MF is currently .00154?
0.00152 is what I have for MF in Southern California (if that matters) for the C300.
As far as MF reduction goes, I could be wrong, but I have a 0.00007 reduction for each payment and up to 10 payment is accepted for to total of 0.00070 in MF reduction in Southern California (again, if that matters).
With 8 payments of security deposits, yes, you will be receiving a total reduction of 0.00056.
Hope that helps!
Are you sure they are not marking up the MF? I am not sure about Merc but i know BMW dealers do it.