A generous RM100,000 discount on a Mercedes Benz S300L for Penang Chief Minister Lim Guan Eng has raised questions whether it was in exchange for favours.

No, said a dealer. The offer, he revealed, was not exclusively for Lim.

The discount is part of Mercedes-Benz's year-end offers and stock clearance exercise to anybody who buys a 2012 model of the Mercedes Benz S Class vehicle, The Star quoted an unnamed dealer a saying.

"The discount is offered to anyone, including individual buyers, as long as the 2012 stock is still available," the MCA-run English daily quoted the dealer as saying.

However, he said, that offer does not apply to the newer models.

The Penang government had on Dec 31 last year, announced the purchase of a Mercedes Benz S300L, which will be the chief minister's new official vehicle, for RM298,263.75.

State financial officer Mokhtar Mohd Jait defended the purchase, saying the original price was RM657,218 but the state was given a tax exemption and a discount of RM100,000.

He also confirmed later that the Mercedes Benz S300L bought for Lim was a 2012 model.