C300 MF - Dealer "miscalculation"?

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)

MSRP: 45,665
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

MSD: $4,000
Autopay: yes

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:

  1. Starting MF has an extra “0” It should be .00154
  2. 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?

Many thanks!

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.