Mercedes-Benz introduces ‘Star Lease’ in India

In its bid to attract entry-level luxury car buyers, Mercedes-Benz India introduced ‘Star Lease’, a one of its kind self leasing option in the luxury car segment for its complete range of cars available in India. "Star Lease" will be provided through Daimler Financial Services India, a subsidiary of Daimler Financial Services AG that was launched in July 2011 under the Mercedes Benz Financial branding. This leasing option will be available in all Mercedes-Benz dealerships across the country with immediate effect. Debashis Mitra, Director, Sales & Marketing, Mercedes-Benz India commented “Like many other firsts, Mercedes-Benz first brings to India a financial product which can change the way consumers purchase a car. Our leasing product shall ensure easy upgrades for consumers & hassle free ownership experience. We are proud to be the only luxury car manufacturer to offer this option in India.” He further added,”Consumers shall now have an option to drive away a Mercedes-Benz without any initial investment & just pay affordable rentals which shall cover all insurance & maintenance costs for 3 years.” Leasing is the grant of use of a vehicle where the customer pays only what he uses. Under a leasing contract the customer has the use of a vehicle over a period of time for a fixed monthly lease rate. Daimler Financial Services India Pvt. Ltd will be the owner of the asset and maintenance of the vehicles will be carried out by Mercedes-Benz dealers as a part of the leasing contract. Commenting on this development, Sidhartha Nair, Managing Director, Daimler Financial Services India stated, “The Indian consumer’s appetite for luxury vehicles has been voracious and we foresee this growing in the future. The consumer in India has also matured in his buying habits and is demanding innovative options. We are happy to launch Star Lease today and anticipate very positive response.” The customer will benefit from a better cost control as leasing would be a lower fixed EMI as compared to the financing of the vehicle. The vehicle would not feature as a part of the customer’s asset and hence would accrue tax benefits. The ownership of the vehicle is risk free as the residual risk is taken care of by Mercedes-Benz India Pvt. Ltd. Through this flexibility the customer will be able to afford to change their Mercedes-Benz every two to five years, or even upgrade to a more impressive model that, until now, may have been beyond their budget.