I’m recommending to someone to use MSDs for an Audi. He (understandably) would like to see the details in writing, but when I called Audi Financial Services they had no clue and told me to call Audi of America… who also had no idea what I was referring to.
Is there anywhere in writing where I can find terms/conditions for MSDs for Audi (and other manufacturers, for that matter)?
I read thru the forums but only found discussions that recommended the use of MSDs, not actual links to any direct sources.
I have the same question for BMW. If I want to transfer the MSD option to a new vehicle, how shall I time the transition, i.e. can I get a new lease 1 or more month later or it has to be a direct transition during say a week since return? If the latter, this would limit hacking options to cars available right at that moment unless the dealer would do some pull ahead.
P.S. Just read on the other thread that MSD is back for everybody with BMW.
It won’t be a set dollar number. It will be the monthly payment rounded up to the next $25 or $50 increment, depending on how AFS defines each deposit.
I see. So once payments get higher (like $600+), the ROI for MSDs is minimized. Like if someone has $900/month payments, max MSDs would be like $9,000, just to save $50ish/month
As others have stated, the higher the monthly payment and the higher the MSD, the more you’ll save on the monthly payment. It’s a linear relationship because the numbers your dealing with are larger and it’s a set percentage of those numbers because of the interest rate. For example 1.08 percent of 8100 is far larger than 1.08 percent of 2700.
In regard to your original question, a lease agreement (probably on the back) should be where you’ll find all the information on the terms of a security deposit.
I’m having trouble understanding this… they way I see it, 9 MSDs will reduce the MP about $50, whether the MP is $300 or $900. I don’t see how the savings is commensurate with the amount of the MP. (Bc obviously $50/month off a $300 MP is much more impactful than $50/month off a $900 MP.)
Right, I get that, but then how come the reduction in MP remains about $50 across the board? Unless it’s just more effective in the case of the Audi now that the MF is so high on them
I guess it really depends on a lot of factors like the base MF etc.
Bottom line I’m trying to get at, is that MSDs on a car with high MP (like a $75K Q7) aren’t really worth it when you need to put down close to $9k just to save $50/month.
That’s about 6.6% savings/ROI per yr.
As opposed to a lot of the Infiniti deals we see here where the MP is much lower (in the $300s), so the MSDs make a much bigger difference and the ROI is much higher since the deposit is closer to $3-$4k
Say you have to make 50k in payments at 3% interest, that is 1500 paid in interest. Now 50k at 2% is 1k in interest so you saved $500.
If you have 20k in payments at 3% that is 600 in interest vs 20k at 2% is 400, so a savings off $200. So same interest rate reduction but a greater savings on the higher payment.
No wonder your friend doesn’t want to put MSDs down. Seems like you don’t fully understand it either. How can you compare Infiniti to Audi when Infiniti’s MSDs is twice as good as Audi’s (.0001 vs .00005 reduction per MSD).
Yes agreed. I tend to look at things from a very finance-heavy perspective. But regarding MSDs on a high MSRP unit, One needs to be able to lock up $8-$9k for 36 months (kinda like a CD).
Another finance rule I remember from school is that a dollar today is worth more than a dollar tomorrow.
