New Financing Solutions For Used Car Dealerships
Up to 1,500 used car dealers (UCDs) registered with Chailease Berjaya will benefit from this new financing option.
A new agreement has been signed between Funding Societies, Southeast Asia’s largest unified small and medium enterprise (SME) digital finance platform, and Chailease Berjaya Credit Sdn Bhd, Berjaya Corp Berhad’s associated non-bank financial institution with Chailease Holding Co. Ltd.
The partnership could prove to be a massive boon for UCDs, as all eligible dealers can apply for financing to facilitate the purchase of dealership floor stock and offer value-added hire-purchase solutions to their customers.
Back in 2021, Malaysia’s used car market was valued at approximately USD25 billion (RM112 billion). The market is expected to grow at a rapid pace, with many predicting that it may grow by 40% to USD35 billion (RM156 billion) by 2027. There are a number of factors that are driving said growth. Among them are consumers seeking to optimise their finances and concerns over crowded public transportation systems following the pandemic.
In addition, more Malaysians are seeking out and accepting opportunities outside of major urban hotspots, which may lead to them relocating away from the Klang Valley. This will likely make affordable private vehicle ownership more of a necessity
“As we move beyond the pandemic and enter a phase of recovery, our partnership with Chailease Berjaya Credit enables us to grow our UCD portfolio and serve creditworthy, underserved dealerships within Chailease Berjaya Credit’s network. This collaboration provides these dealerships with accessible credit lines to support their operations and seize growth prospects,” said Chai Kien Poon, Country Head, Funding Societies Malaysia.
“These dealerships face ever-changing market demands, and we believe that by enabling them to acquire inventory and offer consumer financing options, we can contribute to a stronger ecosystem and enhance cash flow for both dealerships and their customers,” said Ming-Tsung Chang, Managing Director, Chailease Berjaya Credit Sdn. Bhd.
To be more specific, the partnership will grant UCDs the opportunity to secure dealer financing for up to 85% of their motor vehicle inventory purchases. The financing period spans up to 90 days from the disbursement date. The application process is simple, as UCDs only need to submit 2 sets of documents, identity documents (directors and company) and bank statements to apply for financing up to RM500,000.
To qualify for this financing opportunity, UCDs must meet the following conditions:
- Be registered with the Companies Commission of Malaysia (SSM) as one of the following: a sole proprietorship, a partnership, a private limited company (not a subsidiary of listed companies), or an unlisted public limited company with at least 30% Malaysian ownership;
- Have been in operation for at least 1 year; and
- Have a minimum annual revenue of RM500,000.
If you would like to know more about the partnership, you can visit https://fundingsocieties.com.my/dealer-financing.
