Mercedes-Benz on October 11, 2011, with the launch of Star Lease, entered the domain of car leasing in India. Under the new scheme, Mercedes-Benz will offer its complete range of cars for hire on a monthly rental for a period ranging between 12 to 36 months.
Without the hassle of initial investment, the consumers can drive a Mercedes-Benz for the stipulated period of time by paying rentals which will cover all the insurance and maintenance costs, stated Mr. Debashis Mitra, Mercedes Benz India’s Director of Sales and Marketing.
Launched under Mercedes-Benz Financial branding, Daimler Financial Services India (offspring of Daimler Financial Services AG) will be responsible for leasing the cars and the Star Lease will offer individual lease plans from company’s dealership in cities like Delhi, Mumbai, Pune, Bangalore and Chennai.
Elaborating on the leasing process, Mr. Sidhartha Nair, MD of Daimler Financial Services India, commented, “One does not need to pay the full price of the car. Normally, as per the leasing model, we give the car on lease for a period of three years, working out a residual value upfront. This value, which on an average is 50% of the cost of a new car is something the customer does not need to pay.” Thus, the user will pay only the remaining value of the car, which is approximately half the cost.