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Mercedes-Benz to introduce self-leasing
Posted on 14 Sep 201218,073 Views8 Comments
Young buyers will be able to rent a Merc for two or three years for an all-inclusive fee of Rs 1 lakh per month
Over the next two years, when Mercedes Benz launches four of its New Generation Compact Cars in the country - the B-class sports tourer, the A-class family compact, a Baby Sedan and a Baby SUV, all in the Rs 25-30 lakh segment - it will be looking at a younger segment of buyers. But it's not just about offering a car that will have features and innovative quirks younger owners might like. "Young users means a fast-changing cycle of cars, or newer ways of acquiring them," says Debashis Mitra, director, sales & marketing at Mercedes Benz India. Also Read: Mercedes-Benz introduces iSales for dealers
The company's answer to both is self-leasing, by which young consumers can rent a Mercedes for two or three years for Rs 1 lakh every month (this includes leasing, insurance, warranty and service fees). That way, they can still own a Mercedes-Benz and keep changing models when they want, says Mitra, adding that since globally, about 50% of people lease their luxury cars, why can't young, affluent, aspirational Indians do it too? The self lease option, which Mercedes-Benz already offers, has no down payment; simply a monthly rental. "This makes affordability come home," says Mitra, "and you can keep changing cars every few years since you never really own the vehicle."
Studies of the 2.4 million passenger car market in India, say luxury cars make for only 1 per cent today. But by 2020, when the passenger car market grows to an estimated 7-8 million, luxury cars will comprise 3-4 per cent of that. Young consumers, says Mitra, will account for a big part of this jump from an approximate 25,000 luxury cars today, to about 3 lakh in eight years from now. "The bigger chunk of this Indian luxury car market will come from young consumers," he adds.
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Readers' opinions ( 8 )
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Mani
This practice is followed in most of the european and us states where people dont want to stick to one car and keep changing it based on their needs. But 1 lac for one month is an outrageous fees if we consider that the merc models cost 20-30 lacs in india. So by this one would have spend almost the same amount of money as buying them in 2 years.
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Km7000
Lease for few months and go for another one....Not for 36 or 48 months....That's the idea behind this scheme...Remember, maintenance is theirs..Only fuel expenses...
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ganesh
Does Mercedes People Think that the Indian Youngsters are fool,that they will give the Car for Lease For 1 lac Per Month so its Better to save that and Own the New Mercedes or another car .
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raj
i agree with viram and anup.people at merc should think it over.young byers are not fools
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Anup
If the car is worth 30 lakhs, keeping it for 3 years means you pay 36 lakhs and yet you dont own the car.. hmm.. annual maintenance for these cars maybe 1 lakh, and yet you're 3 lakhs down and still dont own it... Makes no sense to me but ok.. if someone is offering i'm sure some id1ot will be buying!
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Harish
Please understand that this is a new product all together. Its for short term and short term as defined as 6 months or below ideally. You can then change the car. Why would you wanna end up with a car after 36 months which has absolutely no resale value?
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