Mercedes Benz brings vehicle leasing into China

Mercedes Benz Auto Finance (MBAC) will become the first finance company to offer vehicle leasing on the Chinese market after receiving the approval of the Chinese Banking Regulatory Commission. Starting in March, MBAC plans to begin its work by focusing on corporate fleet leasing to companies in Beijing.

"We welcome the government's decision to enable auto finance companies to offer leasing in China, as we believe this will have a positive impact on the Chinese vehicle market,” Ulrich Walker, Daimler Northeast Asia said.

"While leasing is very new in China, we believe it has potential to grow over the mid-term, especially as consumers understand more about the flexible and attractive financing options," stated the official.

Mercedes Benz provides a number of vehicle financing and insurance options for Mercedes-Benz cars, trucks and vans in China. At the end of 2008, the company managed a contract volume of 328 million euros.

"By leasing a vehicle, consumers will be able to drive a Mercedes-Benz, leverage their existing money in other ways, and have the flexibility of changing to a new car more frequently," Wolf Bay, MBAC CEO added.

In the group's overall business, Daimler Financial Services is responsible for a contract volume of 63 billion euros. Worldwide more than every third new group vehicle is financed or leased by Daimler Financial Services.

By the end of 2008, 80 foreign-funded and 37 domestic-funded financial leasing companies were present in China with the approval of the Chinese Ministry of Commerce. Allowing Mercedes Benz to offer vehicle leasing in China is part of the governments stimulus package meant to boost new car sales.