New Delhi: German luxury car maker BMW on Thursday said it has started leasing business in India under the financial services division.
"The launch of BMW Lease is a significant milestone in our growth strategy in India and will beyond doubt provide sheer driving pleasure with complete peace of mind to BMW customers," BMW India President Andreas Schaaf said.
Under the programme, the company will offer cars under lease to both individuals and corporate customers.
In the initial phase, BMW Lease will be launched in six states -- Delhi, Haryana, Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra, the company said, adding that the leasing service will be expanded gradually to all other BMW dealerships in the country.
Under the finance lease arrangement, all substantial risks and rewards incidental to the ownership of the vehicle is transferred to the customer, the company said.
"At the end of the tenure, the customer is provided an option to retain the vehicle at a price substantially lower than the market price," it added.
In the operating lease arrangement, the company said, BMW Financial Services India bears the risk of ownership of the vehicle and at the end of the lease tenure, a customer can decide to upgrade to a new BMW or purchase the vehicle at the prevailing market price.
"BMW Lease is a pioneering product, specially engineered for BMW customers, providing customised financing options, flexible lease tenures and better tax benefits... We are confident that BMW Lease will provide further impetus to BMW India sales," BMW India Financial Services Managing Director and CEO Dan DeChristopher said in a statement.