Dealers say the innovative scheme, called Advance, is proving a winner but is not yet widely used in the network. Advance is structured in a similar way to a flexible mortgage account, such as Virgin One.
Customers can choose between fixed or variable interest rates, vary the monthly repayments, make lump sum payments to reduce the outstanding debt, or even draw extra funds back against additional payments already made.
The original finance agreement can be structured as a simple hire purchase, or it is possible to have a PCP-style, with a flexible balloon payment at the end. Private or business customers can settle the account at any time without extra interest charges and at a fixed fee.
George Cowie, business manager at Riverdale Reading, said the scheme had allowed him to increase finance penetration even during the recent difficult trading period.
But he said other Mercedes dealers had been slow to seize the advantages the product offers.
“Advance is unequalled by anyone in this sector, allowing us to sell the benefits of the scheme without fear of a comparison quote,” he said. “If you can offer the customer a finance package that gives them exceptional flexibility, then this can only be perceived as good, honest service.”