Mercedes-Benz MSD and Autopay programs

Wondering if anyone could share some knowledge around the programs. The dealer is pushing back pretty strongly on the MSD. My understanding is that the MSD program is more so an arrangement with me and MBFS - and should not impact dealer profitability. So if I am willing to put money down - then why would the dealer care if I use the MSD or not?



I’m interested in the answer to this as well as your understanding agrees with mine.

My guess is the MSD lowers the monthly payment pricing floor, so when customers talk to each other and one person says to their friend, “I leased an E300 for $325 month, you should go to this dealer, they can hook you up” (not telling them that they leased a loaner with 9K miles and used max-MSD), then friend goes to dealer and their payment on the same model is $500, the dealer has to talk the new client off the cliff because they didn’t understand how the first person got to the low rate.

MSD lower finance rate and dealer’s profit on a padded MF, as a result. Maybe they even get something back from MBFS on buy rate, who knows.

But if the MF wasn’t padded, there would be no issue with it? And even if it was padded, they would still get their “padding” - the discount from MSD wouldn’t they?

I work in finance - and that agrees with how my math works. But trying to penetrate the MB math.

Maybe they get % of the finance charge amount, padded or not. Just guessing here.

Yeah, I have no idea either. The one time I considered getting a Mercedes loaner, the sales guy told me they would not do MSD’s, and I just didn’t understand why, and he didn’t have a good answer either.

I know some will not do it - period. So there must be a very good reason for that.

I need to make friends with a finance guy at MB. I have had to explain the MSD program to multiple salesmen.

Sales guy cant understand the benefit - ‘why would you want to put extra 5000 down’?

Anyone had any issues putting down MSD at SoCal dealers? (OC to be exact) Never leased MB before but since BMW hackr deals are harder to get, I have a feeling some BMW owners will jump ship for MSD, including myself. Some of the 2017 E300 loaner deals are ridiculous!!

My deal is in South Carolina. Working an E300 demo of course.

Could any of you confirm the accuracy of the MSD calculation in the leashackr tool? When I input into the tool I am getting a different rate adjustment and lower deposit. MB dealer is coming in at 5500 vs 4500 deposit and 10bp higher in rate.

MB calculates each security deposit on the pre-MSD price, which might be causing the discrepancy between $5500 vs $4500.

They probably want to mark up the MF rate and would find that more difficult to do when your expected MSD does not match their quote.

I would ask dealer why they care as it does not affect their profit and see what BS answer comes back.

security deposit is calculated pre msd price and rounded to the next 50$