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Mercedes-Benz Introduces Starmark Pre-Owned Vehicle Program

31 October 1997

Mercedes-Benz Introduces Starmark Pre-Owned Vehicle Program; New, More Versatile Program to be Piloted in Three Major Markets

    MONTVALE, N.J., Oct. 31 -- Mercedes-Benz of North America,
Inc. (MBNA), a pioneer in pre-owned vehicle programs for the past decade,
today announced that it is piloting a comprehensive new factory-backed
certified vehicle program called Starmark which covers previously owned
vehicles with a warranty of up to 100,000 miles.
    Initially, the pilot markets for Starmark vehicles are Dallas,
Philadelphia and Seattle with a planned national roll out to begin in the
first quarter of 1998.
    "The pre-owned vehicle market is the fastest-growing segment in the
automotive industry and provides us with the opportunity to bring people into
the Mercedes family at an earlier point in time," said Mike Jackson, president
of MBNA.  "What makes Starmark unique is that it combines a decade of
experience in luxury car re-marketing, a model line renowned for its quality
and terms that are flexible, comprehensive and hassle-free for the consumer."
    Starmark offers previously owned Mercedes models for both lease and
purchase.  While the typical Starmark model is a three- or four-year old
vehicle, cars up to eight years old are available and can be covered until
they reach up to 11 years or 100,000 miles.  All Starmark vehicles are
carefully selected to ensure that only the best cars are designated
"Starmark."  These vehicles must pass a 130-plus point inspection performed by
factory trained technicians and are then reconditioned to bring them as close
as possible to like-new condition.
    The standard Starmark warranty coverage carries no deductible and covers
the vehicle for 12 months to a mileage cap of 100,000 miles.  It is
factory-backed as opposed to being administered by third parties (common among
other programs).  Coverage, which includes most major componentry, does not
begin until any existing new car coverage expires.  At the time of sale,
customers may purchase additional coverage to extend the warranty to four
years or 100,000 miles.
    Regardless of which coverage option they choose, customers receive many of
the added customer-care benefits of the company's new-car warranty:  Sign and
Drive service (for flat tire repair, jump starts and out-of-fuel service),
free trip routing and even trip interruption coverage (reimbursement for
meals, accommodations and travel expenses if the car must remain overnight for
repairs on a trip).  And, like every other Mercedes, regardless of age,
mileage or whether purchased new or used, MBNA's 24-hour-a-day Roadside
Assistance system is only a toll-free phone call away.
    Starmark is being supported by an extensive training and marketing
initiative.  In order to sell Starmark vehicles, Mercedes-Benz dealers must
become certified which involves in-depth training (provided by MBNA) of
dealership management, salespeople, service staff and related personnel.  All
Starmark dealers will be required to meet certain CSI (customer satisfaction
index) criteria which will be continuously monitored by MBNA.

    Additional Starmark features include:
    -- A nationwide vehicle locator system which enables dealers to search
       other markets in order to find a Starmark vehicle that matches a
       customer's specifications.
    -- All Starmark vehicles come with individual "Monroney-style" window
       labels which call out standard, optional and aftermarket equipment
       unique to the vehicle.  The price and mileage of the vehicle are also
       stated.
    -- The Starmark vehicle's background is documented via Carfax, a vehicle
       history service.
    -- The vehicle may be exchanged within seven days or 500 miles if the
       customer so desires.
    -- Special financing and lease rates are available from Mercedes-Benz
       Credit Corporation.

    From a marketing standpoint, Starmark will be supported by a TV and print
campaign including outdoor billboards and will receive strong support within
MBNA's relationship marketing program.  The program will also be complemented
by a host of Starmark-branded dealer and point-of-purchase materials.
    According to Gregg Goolsby, Starmark product manager, "We have had a
decade of experience since we pioneered pre-owned vehicle warranty program
back in 1988.  Our objective is to provide customers with high-quality
vehicles in top condition backed by a warranty and also extend the same
outstanding after-sales care that our new-car owners enjoy. Starmark is an
enhancement of this in that it reflects input from customers and dealers as to
bow to best meet the needs of the marketplace.  What we've done with Starmark
is to give our customers flexibility in deciding what their coverage needs are
rather than take a 'one-size-fits-all' approach."

SOURCE  Mercedes-Benz of North America, Inc.