Mercedes Benz Star Lease Launched In India– Lease A Mercedes Benz For Long Term In India

Mercedes Benz India has announced the launch of their India car lease program back in July 2011, in which a customer can lease a brand new Mercedes Benz for 3 years inclusive of all maintenance and servicing for considerable lower price compared to that of the new Mercedes Car. This will increase the affordability of the Mercedes Benz for a larger customer base, especially with the corporates who want to not indulge in purchasing and salvaging the car at the end of its life term, as a long term lease makes more sense for administrative reasons within a corporate. Today Mercedes Benz officially announced the launch of the Mercedes Benz Star Lease program under which customers in India can lease a Mercedes Benz from a wide range of Mercedes Benz cars available in India.

image – Mercedes Benz Star Lease India

Leasing is a grant of use of a vehicle where customer pays only for the time he uses the car. Under a leasing contract the customer has the use of a vehicle over a period of fixed monthly lease rate. Daimler Financial Services IndiaPvt. 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.

Speaking at the event, Mr. Debashish Mitra, Director of sales and Marketing Mercedes Benz India quoted:

“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 customers and hassle free ownership experience. We are proud to be the only luxury car manufacturer to offer this option in India. Consumers shall now have a option to drive away a Mercedes-Benz without any initial investment and just pay affordable rentals which shall cover all insurance and maintenance cost for 3 years.”

Commenting on the same, Mr. Siddhartha Nair, MD, Daimler Financial Services India quoted:

“ The Indian consumer’s appetite luxury vehicles has been veracious and we foresee this growing in future. The consumer in India has also matured in his buying habits and is demanding innovative options. We are happy to launch the Star Lease today and anticipate very positive response.”

Under this new lease program, the customers will benefit from lower cost of leasing over the EMI and maintenance, also the asset will not belong to customer, so it will not have any tax or depreciation implications to the customer. The maintenance, insurance etc. are taken care by the Mercedes Benz India as a part of the contract so the ownership will be very low risk as compared to owning it. Customers can upgrade their car every two to 5 years, which is very expansive in case of owning a new car.

Some Key Point of Mercedes Benz Star Lease Include:

Lease Tenure of Star Lease is minimum 12 months. It can be either 12 months, 24 months and maximum allowed tenure is 36 months (3 years).
After the end of the tenure, the car goes though thorough maintenance and quality check and is then sold via Mercedes Benz India’s official used car business channel.
If the customer wants to buy his leased car at the end of the tenure, he is given that option on priority.
Tax liability in case of leasing is less, and more tax can be saved as lease amount is deducted from the taxable income for an individual, so more tax is saved.

There are some slides showing these tax and other calculations shared by Mr. Siddhartha Nair, MD, Daimler Financial Services India shared below: