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Live Chat. After 36 months, when the lease expires, Sharma has three options—to upgrade from the C Class, pay the residual amount and become the owner of the car, or simply return the car to the financier. Customers such as Sharma are either small entrepreneurs or young, highly paid salaried executives.
A Pune-based dealer of Mercedes-Benz, who declined to be identified, said his dealership has sold close to models through the lease option since its launch.
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But he is hopeful once more firms enter the segment, the concept will catch up. According to Debashis Mitra, director, sales and marketing at Mercedes Benz India, whose firm launched such a service in mid-November, the Indian automobile business in the last years has grown primarily because of the finance penetration.
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We will make an announcement later this month," he said in an interview. Schaff said a concept like self-lease will help in expanding the overall market for premium cars in the country.
Such cars account for a mere 0. Executives at both the firms conceded that the business model involves high risk and might take a while to catch up in a big way.
Nevertheless, they are convinced it will help them boost volumes. Saxena said that not many Indians are open to the idea of renting a car. They would rather own the car even if it means shelling out those extra few lakhs, he said. Saxena added it will definitely attract novelty seekers and those belonging in the high tax-paying bracket.