Mercedes-Benz India was the first one to start the lease program here. It enabled customers to gain entry into the 3-pointed star fold without having to pay huge amounts of money. Many of the other luxury car makers are still trying to play catch-up. We got Fred Weick, MD and CEO of Daimler Financial Services to answer a few questions about the Star Lease program and how it will benefit customers.
Express Drives (ED): What is the underlying idea behind the lease program?
Fred Weick (FW): Star Lease is a unique offering for corporates, SMEs and professionals to drive a Mercedes-Benz without the obligations of ownership.
ED: What are the benefits to the customer?
FW: The benefits of the Star Lease program include the following
- Zero down payment
- Flexible rentals
- Hassle-free experience, not having to worry about maintenance
- No resale value risk
- Tax advantage
- Easy upgrade
- Pay for usage only
- All-inclusive rentals with maintenance and insurance
ED: Does Mercedes sell these cars to dealers at a discount?
FW: The dealers aren’t offered any special discounts for Star Lease.
ED: Is the standard or extended warranty honoured with these cars, given that there will be different users?
FW: The standard warranty applies for the first three years. For rental lease tenures of more than three years, customers may choose to include extended warranty in their terms.
ED: How does the insurance work because these cars again will be driven by multiple people and registered in Mercedes’ name
FW: The vehicles are owned by Daimler Financial Services India Pvt Ltd (lessor), insured in the name of Daimler Financial Services India Pvt Ltd and are leased to customers (lessee). Daimler Financial Services India Pvt Ltd insures the vehicles with best in-class coverage and add-ons.
ED: Are all the Mercedes-Benz cars available under this program?
FW: Yes, customers may choose any preferred Mercedes-Benz model under the lease program.
ED: What is the lease price for, let’s say, a CLA 200 Sport for a three year period? How much does the customer have to pay if she/he wants to purchase the car at the end of the term? Will the dealer handle the transfer as well as the re-registration?
FW: The rental for CLA starts at Rs 98,000 as per the on-road price*. When insurance and maintenance are included in the package, the rental would be Rs 1.23 lakh*. Under the program, the customer has to return the car at the end of the lease tenure.
ED: What if during the warranty and lease program, the customer gets his car serviced from a non-authorised workshop. What action will the company take?
FW: Servicing from a non-authorised workshop will affect the warranty and residual value of the car, thereby increasing the liability for the customer.
*T&C apply
