When buying a luxury car, depreciation and resale value are major concerns. OEM-backed buyback plans (residual-value assurance) – such as BMW’s 360° programme and Mercedes-Benz’s STAR Agility (or Agility+) – aim to address that. This blog decodes how these buyback plans work, compares both brands’ offerings, outlines benefits and caveats, and helps buyers decide which plan suits them best in 2025 India.

What Is an OEM Buyback Plan – and Why It Matters

“Buyback” in context of OEMs means: when you purchase a new car under a special scheme, the manufacturer or their financial services arm promises to buy back or guarantee a minimum residual value at the end of a pre-defined tenure (often 2-5 years), subject to terms like mileage, maintenance compliance, and condition.

For buyers, this means:

• Depreciation risk mitigation – you know what value you’ll get back (or roughly the floor) when returning the car.
• Lower effective cost of ownership – because residual value reduces the overall cost spread over usage period.
• Flexibility to upgrade – you can return or exchange for a new car without worrying about resale hassle.

For luxury cars – which suffer sharper nominal depreciation – such plans reduce financial anxiety and make ownership more predictable.

Several Indian OEMs have adopted this model to attract premium buyers by offering peace of mind and more predictable total cost of ownership.

BMW India – The 360°/ Finance+Buyback Offering

How BMW’s Scheme Works

• Named: BMW 360° programme (also formerly part of financing offers under BMW Financial Services).
• Plan Structure: Buyer chooses –
  
  1. Contract tenure (commonly 2-5 years)
  2. Annual mileage estimate (to tailor depreciation / residual value)
  3. Down payment / EMI schedule as per plan
• Benefits During Tenure: Low down payment, relatively affordable monthly instalments, complimentary servicing/maintenance for 2-3 years (in many offers), and assured buyback at end of tenure.
• End-of-Term Options: At the completion of tenure, customers can:
  1. Return the vehicle and get the assured buyback amount.
  2. Pay final payment and take full ownership.
  3. Trade-in / upgrade to a newer model – if trade-in value is higher than assured buyback, the difference is adjusted.
• Buyback Value / Assured Residual Floor: While exact numbers vary by model, mileage, tenure – during recent “JOY Days” offers, BMW India claimed buyback values “as high as 74% of ex-showroom price” for certain models under the 360° plan (depending on tenure/mileage).
• Flexibility & Additional Benefits: BMW often bundles servicing packages, low-interest financing, and corporate discounts under these schemes, making total cost more predictable.

What It Means for Buyers

• If you want a predictable resale value and worry about depreciation, 360° gives a floor – you know roughly what you get back.
• Good for short-to-mid term ownership (2-5 years), especially if you plan to upgrade to a newer BMW eventually.

Attractive for first-time luxury buyers or those averse to resale hassles – as you can return/upgrade without worrying about market depreciation.

Mercedes-Benz India – STAR Agility/ Agility + Buyback Plan

How Mercedes’ Scheme Works

• Named: STAR Agility (also referred to as Agility+ in some offers) – part of Mercedes-Benz Financial Services in India.
• What It Offers: At the end of lease/finance term, the customer has options:
  1. Return the car and get guaranteed buyback value.
  2. Refinance and continue ownership.
  3. Upgrade to a new Mercedes-Benz model – often with new down payment & EMIs, offering upgrade flexibility
• Benefits over Standard Loan: Monthly payments are often reduced (sometimes up to 40% lower) compared to conventional purchase loans, because EMI covers only the depreciation margin (car’s usage cost).
• Bundled Services: Insurance, extended warranty, and sometimes maintenance packages are bundled – reducing out-of-pocket surprises for owners.

Why This Matters

• Offers buyers of luxury models a flexible, lower-commitment entry – great for those who may want to upgrade after a few years.
• For vehicles with high depreciation risk, guaranteed buyback value helps manage downside.

The ability to return or upgrade without resale hassle or market risk is especially appealing to those who like to refresh cars every few years.

Direct Comparison – BMW vs Mercedes-Benz Buyback Plans

What Buyers Should Watch Out For – Key Caveats & Conditions

• Buyback value and scheme eligibility depend heavily on mileage cap and condition of the vehicle at return. Exceeding mileage or neglecting maintenance may void assurance or reduce payout.
• Only select models/dealerships are eligible in BMW’s 360° – not every BMW variant will have buyback support.
• Residual value is pre-defined and fixed – if the market demand for that model surges, you might miss out on higher resale value (though guaranteed value gives peace of mind).
• Long-term ownership beyond plan tenure may be costly – because the buyback plan may require balloon payment or relinquishing the car.

Administrative or documentation conditions – returning or upgrading may involve paperwork, eligibility checks, and sometimes re-registration or new down payment.

Which Scheme Makes More Sense – And When

• You expect to switch cars every 3-5 years: A buyback plan (BMW 360° or Mercedes STAR Agility) gives flexibility, reduces depreciation risk, and simplifies upgrade.
• You value predictable cost and want to avoid resale hassles: Guaranteed buyback + bundled service/maintenance + lower EMIs = financial predictability.
• You don’t plan to keep the car long-term: Buyback schemes create a near “lease-like” ownership model – ideal for executives, business users, lease/rental use cases.
• You prefer long-term ownership and minimal dependencies: A standard loan + full ownership from day one might be better (if you plan 7-10 years use), as buyback schemes may end up more expensive over the long term.
  

Why OEMs Offer Buyback – Business Perspective

From the automaker’s view, buyback schemes help:

• Manage residual value risk internally, rather than letting customers suffer depreciation shock.
• Encourage upgrade cycles, ensuring repeat sales when customers return for a new model instead of private resale.
• Smooth out inventory/resale market fluctuations, as manufacturers handle buyback rather than letting cars flood the used-car market.

Attract first-time luxury buyers worried about resale loss – making the brand more accessible and less risky.

Conclusion – Buyback Plans Can Be Smart, If You Know What You Want

OEM buyback plans from BMW and Mercedes-Benz in India – via BMW 360° or STAR Agility / Agility+ : offer real value for customers seeking flexibility, predictable costs and resale safety. When used as intended (short-to-mid-term ownership, controlled mileage, regular maintenance) they can significantly reduce ownership headaches.

However, they are not a must – long-term buyers, heavy users, or those wanting full ownership autonomy should weigh carefully before opting in. As always, read the fine print, compare effective monthly/total cost vs standard loan, and match the plan to your ownership horizon.

For buyers navigating the complexities of luxury-car ownership, understanding OEM-backed buyback programmes is essential – and the BMW 360° and Mercedes-Benz STAR Agility schemes are among the most influential tools in the 2025 Indian market. If you want continued access to expert-level insights, data-backed comparisons, and clear guidance on premium automotive decisions, follow Motozite. We deliver precise, in depth analysis to help you stay ahead in the evolving world of luxury automobiles – from finance plans to model launches to long-term ownership strategy. Stay informed. Stay decisive. Stay with Motozite.