PHSWOOD

My new C300 Cabriolet arrives at the dock in Baltimore on March 18. It probably won't make its way to the dealership in Salisbury, MD till after April 1 in which case I will have to take whatever terms MDFS is offering for the month. However, I recently asked what the MF rate is for March and was told it is .00158. I, then, asked about the use of MSD's and was told that MD and VA permit them (I live in VA).....up to ten at .00007 each. So far so good. But, (here's where I'm having a bit of a disconnect), I was told that since I received a DE1 price (12% off MSRP) the MF is .00208. Big difference! So, here's my question: are the two MF rates set by MBFS or are they set by the finance department of the dealership? If it's the latter, I presume they're trying to make up profit on the tail end by charging a higher MF for a DE1. Thoughts, comments, advice?

flycaster

The MF is set by MBFS. However, I believe that you are quite correct in that the dealership is trying to screw you. The dealership is not obligated to give you the "official" MF and can up it to gain further profit. (http://www.realcartips.com/leasing/0...-leasing.shtml). You can get the current MF/residual if you go onto Edmunds (https://forums.edmunds.com/discussio...ease-questions). BTW, when I leased my coupe I gave them 10 MSDs and my interest rate dropped from 2.9% to 1.22%, which inturn amounted to almost a $3000 saving in lease payments over 3 years. And, of course, I'll get back all of my MSDs value when the car is turned in...a win-win situation, Multiply the MF by 2400 to get the interest rate into an understandable perspective.

PHSWOOD

Thank you! I just posted a similar question on the Edmunds C Class forum and am waiting a reply. I fully intend to use MSD's. According to my math, they will produce a 36% "return on investment"......the lease savings compared to the cost of the MSD's.

Hapa88

The "base" MF is set by MBFS. The dealership can add to the MF if they desire. When I was looking MB of Beverly Hills added 25 points (looks like yours is trying to add 50 points ) to the quote they gave me whereas all the other dealerships either kept the MBFS or added only 10. Watch out for these.
@Mike5215 had an excellent Excel spreadsheet that you can plug in all the numbers and see where all the money goes in a lease. Extremely helpful and I highly recommend it.

PHSWOOD

Do you happen to know what the dealer profit might be on a $60,925 MSRP C300 Cab. with a DE1 discount of 12% ($7,300)? Does MB offer dealerships special pricing on these deals or are the dealers expected to make their profit by padding the MF?

Hapa88

Dealers will make their profit a number of different ways including (but not limited to):
1) Marking up the MF
2) With the "Dealer Fee". They make even more if you don't pay it upfront and have it financed.
3) With the "Acquisition Fee" or "Lease Fee". MBFS standard is $795, but most dealers charge more. They make even more if you don't pay it upfront and have it financed.
4) With "Dealer Prep" fees
5) On your vehicle trade in
6) In other "hidden fees"
7) In high profit services like: VIN Etching, Nitrogen tire fills, underbody coatings, interior and exterior paint protections, dealer installed alarms, window tints, wheel locks, chrome plating on wheels, dealer installed aftermarket equipment (like wheels), etc.