What we understand is that Wishbox 1.0 was a massive success in 2019. This has led to Mercedes Benz bring out a more aggressive Wishbox 2.0 now. A lot of OEMs are focusing on announcing smart financing schemes to support customer purchases in the Covid era. While Mass Market OEMs like Hyundai, Mahindra, Maruti, etc have already announced similar schemes; Mercedes Benz takes the initiative in the Luxury OEMs.
Wishbox 1.0 actually helped Mercedes strengthen the leadership position in 2019. We believe that Wishbox 2.0 is way upgraded from Wishbox 1.0.
What was Wishbox 1.0?
- Key-to-Key Change : The plan allowed the customer own two Mercedes-Benz cars in a span of four years. It allows for two upgrades for no extra cost. And package was offered on the Mercedes-Benz GLE, GLS and S-Class.
- 25-25-25-25 : The scheme allowed the buyer to purchase the Mercedes-Benz product in four installments. The first installment was 25 per cent the price of the car and then pay three annual payments of 25 per cent each. The cars included in the offer were Mercedes-Benz GLC, GLE, GLS.
- Zero Down payment : The regular downpayment of the Mercedes-Benz is at 40 per cent of the price. This scheme took off that hassle and the customer only paid the road-tax to purchase the car/SUV and then the rest of the amount was converted to EMIs for the next 60 months.
- Star Agility+ and Comprehensive insurance : The package provided new customers with 40 per cent lesser EMIs which are inclusive of the maintenance, warranty and assured buyback. Also complimentary insurance program was offered for two years from purchase.
Our Views: It was majorly focused on getting more customers know the Brand.
What is Wishbox 2.0?
- EMI free period – no EMI for first three months
- Step up 2020 – lesser EMIs for the first six months with regular EMIs starting from 7th month of purchase
- 10 year loan – 10-year extended loan
Hence what ‘Wishbox 2.0’, primarily offers is customized financial solutions including no EMI for first three months, lesser EMIs for the first six months with regular EMIs starting from 7th month of purchase and 10-year extended loan.
Our Views: We believe that the scheme is aligned towards the current Market situation where customers are scared. Hope the demand picks up basis easy and comfortable finance options.