Help! How are Mercedes Benz MSD's Calculated? And is the dealer wrong?

Ask the Hackrs
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1

Hi Hackrs-
I need your help!
I had a deal in place with a dealer, and the delivery of the vehicle got delayed from end of May into June. That affected the residual slightly, which in turn increased my payment slightly, and according to the dealer, the amount of MSD’s that I need to put down.
My understanding based on previous MB leases is that the deposit is $500 for every $50 in monthly payment (rounded up). Is this accurate?
My original payment was $663, and the amount of MSD’s was $7,000.
Now that the payment has increased to $679, I would assume the MSD’s required would stay the same. However, the dealer is telling me it’s now $7,500.
Is he correct?
And if not, is there any ammo you can provide to go back to the dealer to keep the MSDs the same?
I’m supposed t be picking up the car this coming weekend, so hoping to wrap this up asap.
Thank you so so so so much!

2

You’re tagged for NY. NY law does not allow MSD as far as I know.

3

What was the monthly payment before the msds were applied?

4

I’m buying the vehicle out of state. NY dealers cant offer MSDs.
It’s where the car is bought, not registered.

5

There are brands that wont allow msds for NY residents, no matter where you buy. I could have sworn MB fell into that category.

6

Aha! So it is based on the pre-MSD payment? Didnt think about it that way.
Guess that makes sense…
Don’t recall off-hand, but the MSD’s reduced the monthly by over $30/month.
But if the monthly is $679, and add ~$30, that’s $709, round up, that’s $750, and there’s your $7,500 MSD…
Just didnt want the dealer to be correct in the case…
Thanks!!!

7

I think so. Different brands do it differently and it’s hard to keep them separate, but im fairly confident MB does pre-msd payment amount.

8

No, my previous and current leases are MB’s, and have registered both in NYC using MSD’s. Just need to buy out of state (NJ, PA, etc). Havent had any issues except with dealers that arent familiar with them, and then they offer them.

9

I’ll add that to my knowledge base :face_with_monocle:

10

Out of state MB dealer can offer MSDs to NY buyers.

Yes. Based on pre-MSD monthly