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New Firm to Finance Mercedes-Benz
ABU DHABI - Distributors of Mercedes Benz cars in the UAE have teamed up with the leading international automotive finance group Daimler Financial Services to form two companies to provide finance for the purchase and leasing of these premium cars.
The companies together will provide about Dh 2 billion to finance purchase and lease of cars in the UAE over the next four to five years. About 10,000 Mercedes Benz cars will be financed by the companies then.
Emirates Motor Company owned Al Fahim Group is the authorised distributor for Mercedes Benz cars in Abu Dhabi while Gargash Enterprises is the distributor for Dubai, Sharjah and Northern Emirates.
Both these distributors will be partners along with Daimler to form the two companies which will be called Mercedes Benz Finance Middle East and Mercedes Benz Leasing Middle East.
The deal to form the new companies at a joint Press conference addressed by Juergen Walker, Chairman of the Board of Daimler Financial Services, Andreas Ernst, the Managing Director, Rasheed AJ Al Fahim, Chairman of Al Fahim Group and Abdul Jabbar Gargash of Gargash Enterprises. The companies will extend up to 90 per of the price of the car as loan and in some cases even 100 per cent depending on the credit quality of the customers, the company officials said.
The companies will offer customers a complete range of financial service products including Shariah-compliant financing. The interest rates in the traditional mode of financing could be less than five per cent.According to Juergen even though the global financial crisis has impacted industry just like other sectors, the rate of penetration of automotive financing was seen growing up in the recent days. This means that more people are coming to buy vehicles. So there is an upswing in the market in the recent days.
The sale figures have not been bright till last month, but it has picked up in September, and I hope we will be able to come up with results comparable to last year, replied Mr Rasheed when asked about the sale of Mercedes Benz cars in the UAE. About 7,800 Mercedes Benz passenger cars and 3100 commercial vehicles were sold in Abu Dhabi, Dubai, Sharjah and the Northern Emirates in 2008. The sale this year till date in the UAE was 4554, while 626 of them were sold in September itself. Daimler Financial Services is considered to be the world’s largest commercial vehicle financier with a contract volume of €18 billion.
ramavarman@khaleejtimes.ae
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