Funding Societies, Proton to provide financing to dealers
By Digital News Asia November 16, 2022
- Dealers can tap into vehicle ownership growth by increasing their inventory
- Provides dealers with financing for up to 85% of the transaction value
Digital financing platform Funding Societies has collaborated with national car maker Proton to provide credit facilities for Proton dealers to finance the purchase of cars for floor stocking.
In a statement, Funding Societies Malaysia said demand for personal vehicles saw an increase since the second half of 2020.
“Underlying this growth are concerns over shared transportation (Covid-19 health crisis) and accommodative government policies during the pandemic,” said Chai Kien Poon (pic, above), country head of Funding Societies.
“With Funding Societies’ revolving credit facility, Proton dealers can tap into that growth by increasing their inventory for sale across by increasing their floor stocking inventory of used cars.”
He added that in line with Funding Societies’ mission to provide financing facilities to underserved, creditworthy SMEs, this revolving credit facility provides Proton dealers with a more seamless experience.
“They may utilise the facility any time and anywhere upon its activation. Additionally, dealers will have access to our online supply chain financing system to manage their financing facility with us,” he said.
Wan Ahmad Fadzli Wan Mustafa (pic), general manager at Proton Edar, said with Proton’s sales volume increase over the past few years, the company has seen an increase of trade-in or trade-up transactions.
“Through the dealer financing service provided by Funding Societies, our dealers can finance the purchase of floor stocks to enable the trade-in transaction,” he said.
Since its inception in 2019, Proton’s Used Car Management (UCM) unit has introduced operating procedures and provided training for used car inspectors to manage transactions at each outlet and ensure services provided are in line with the expectations set by the brand.
Currently, the company has 35 outlets retailing PROTON Certified Pre-Owned (PCPO) vehicles in the country.
“Dealers who wish to apply for financing may do so via Funding Societies’ online platform.
“They will be able to provide financing for up to 85% of the transaction value with repayment periods of up to 90 days,” said Wan Ahmad.
He said its dealers can grow their business by raising short-term capital to manage their cash flow and even use it for new car purchases from Proton Edar as well.
According to Proton, vehicles sold under its PCPO programme undergo a thorough 201-point inspection and are assured to be free of any flood or major accident damage.
It said customers also enjoy a one-year extended warranty which covers the engine and transmission as well as a one-time free basic service after six months from date of registration.
With the increasing shift to online platforms, Proton said it has set up a dedicated used car website to attract tech-savvy buyers, adding that consumers can view stocks without walking into showrooms and browse through the website to get an estimated used car’s market price.
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