MUV’S online auction platform sees over 1,000 cars transacted in February 2017
By Digital News Asia March 9, 2017
- Since it began in July 2013, MUV has auctioned 28,000 vehicles
- The final transacted prices on MUV have generally been at least 30% higher than the reserve prices
MUV Marketplace Sdn Bhd, a homegrown online used car marketplace saw 1,000 vehicles transacted through its online car auction platform in the month of February 2017.
This milestone is significant for MUV’s business and the local used car industry. It showcases how technology can help expand and move a traditional market forward by bringing a whole new level of order and transparency to the way it operates.
MUV started its business from the low end of the market by focusing on used cars, a natural by-product of new car sales.
Since it began in July 2013, MUV has auctioned 28,000 vehicles, with a combined Gross Merchandisable Value (GMV) of over US$100 million.
MUV founder Nicholas Tan (pic) said, “Breaching the 1,000 cars transacted mark is a real breakthrough for us. This milestone is an important indication that more and more customers are really beginning to see the value of purchasing used cars through MUV’s online auction platform. Currently, MUV’s main customers are used car dealers who have embraced the value-added advantages offered by MUV’s proprietary online platform.
“We have the largest network of used car dealers, with over 3,000 dealers nationwide. They are valuable trade partners who have made our initial and continued success possible. Their support has enabled us to hit our 62% success rate on cars auctioned.
“Our main advantage is simply scale. Our sheer number of online sales that continues to increase gives us a huge amount of data and detail on actual transactions. This growing body of information brings legitimacy to the market and also improves the lives of our customers, as it provides them with greater price discovery. MUV will also be able to provide both sellers and buyers with fair market values for all used vehicles in such an environment.
“In fact, the ‘MUV Price’ is now increasingly quoted as the industry proxy for what a used vehicle is really worth. Due to our scale and digital advantage, we also have good visibility on end demand and popular trending models as they are transacted in real-time,” Tan added.
Based on February 2017 data on MUV’s top 10 most popular models by number of bids as listed in the table below, the final transacted prices on MUV’s online car auction platform have been, on an average, at least 30% higher than the reserve prices.
There were at least 25 bids on each of these vehicles and over 220 bids on the most popular make and model.
Online used car marketplaces like MUV also solve the problem of geographical distance, giving customers from all over the country access to greater choices and allowing them to buy cars at better prices at any time and from any place at their convenience.
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