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| Merc, BMW, VW use discounts to drive down old stocks |
| SWARAJ BAGGONKAR / Mumbai Mar 27, 2009, 23:05 IST |
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Want to own a Merc or Beemer but can’t afford it? Here’s your chance. With luxury car makers getting ready to launch upgraded versions of models, dealers are offering discounts ranging from Rs 1 lakh to Rs 4 lakh on models that are being phased out to clear inventory.
Daimler Benz-owned Mercedes Benz is offering a direct cash discount of Rs 2.5 lakh on the current E-Class, accompanied by an interest-free finance scheme. The E-Class is otherwise available in five variants in the price band of Rs 38 lakh to Rs 42 lakh (ex-showroom, Mumbai). The upgrade will be ready for launch early next year and is expected to be more expensive than the current model.
Another German luxury auto maker, Bayerische Motoren Werke or BMW, has thrown in a believe-it-or-not Rs 3 lakh to Rs 4 lakh direct discount on the previous version of the 3-series, that was launched in January this year but later phased out by the company. The current sticker price is Rs 32.20 lakh.
Europe’s largest car maker, Volkswagen, too, is offering hefty discounts and price benefits ranging from Rs 80,000 to Rs 100,0000 on the older version of the Passat sedan.The price benefits include a cut in insurance payout, reduced interest rate and a direct cash discount.
The company introduced common rail technology to the Passat’s engine in December without hiking the cost of the car, which remains at Rs 23.94 lakh. The new technology provides improved performance and superior refinement levels, with better overall fuel economy levels.
These offers are, however, time- and condition-bound. Autohangar, the authorised dealers of Mercedes-Benz cars, has laid down special criteria for consumers availing of the offer.
For instance, the offer on the E-Class is valid only till the end of the current month. Consumers can avail of finance of up to Rs 30 lakh for three years to benefit from the zero per cent finance scheme.
If he wants financing beyond Rs 30 lakh for a higher-end model of the E class (the discount is the same), the interest rate would be 3 to 4 per cent a year for a three-year loan.
“Since 80 per cent of our buyers use the finance route, we have tied up with HDFC, Kotak Mahindra and ICICI to arrange for finance. Any change in the structured model of financing will result in increase in interest rate,” said the head of sales at Autohangar.
However, there’s aren’t too many cars available at these discounts. Dealers say there are half a dozen of these cars available around the country.
“We are offering a Rs 400,000 discount on the previous 3-series but we have just one unit left with us,” said an executive from Infinity Cars.
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