Empowering car dealers towards a more dynamic marketplace for used vehicles
KUALA LUMPUR, November 17, 2020 – muv (appropriately stands for Marketplace for Used Vehicles), Malaysia’s largest marketplace for used vehicles, has partnered with Fundaztic, one of the leading peer-to-peer financing (P2P) platforms, to provide RM1 billion financing to car dealers registered with muv.
Under this financing programme, some 5,000 authorised car dealers registered with muv will have the opportunity to receive up to a RM200,000 credit line to finance the purchase of used vehicles through muv.
Fundaztic, who is regulated under Securities Commission Malaysia (SC), will be providing collateral free financing to authorised car dealers by crowdfunding for up to 80% of the vehicle’s successfully bidded purchase price. The used car dealers will then pay the interest and principal back to investors through the platform at the end of the funding tenure.
“At muv, we strive to continue innovating our existing processes to enhance value and efficiency for all our stakeholders. This partnership with Fundaztic came about with the intention to empower our dealers by providing them the means to continue expanding their businesses,” said Andy Teh, CEO of muv.
muv has set up a very dynamic marketplace for used vehicles, having a focus on establishing the technology to optimise the user’s buying and selling experience. muv mediates an auction three times a week. Together with its latest bidding platform, muvbid, muv offers 24/7 listing with hundreds of vehicles available for bidding on www.muv-x.com.
Participating registered dealers buying on muv will be able to tap on the benefits of the funding from Fundaztic.
Small and medium sized used car dealers often face difficulty securing loans from traditional financing avenues when buying used vehicles; banks tend to finance bigger players with an established credit history. Hence, Fundaztic, being the P2P platform, which targets micro, small and medium enterprises (MSMEs) serves as a strategic medium to close this financing gap.
“We want to serve as many MSMEs as possible as we truly believe they make up the backbone of Malaysia’s economy. This collaboration with muv will extend our reach in the automotive industry and introduce a new short term financing option to our investors. It will also help drive home the number one rule of investing; practice diversification.” says Calvin Foo, Acting Chief Executive Officer of Fundaztic.
The Covid-19 pandemic has impacted the automotive industry in Malaysia in various ways. However, recovery efforts are looking positive for the used car market compared to the new vehicle segment. This is because public sentiment in general has been more conservative in light of economic uncertainty and used vehicles are seen as more cost effective. Additionally, there is a shared hesitancy for public transport usage.
“We are committed to the growth of this industry, and we will endeavour to do whatever we can to continue supporting the recovery efforts of this industry by continuously addressing the pain points and providing the right solutions for car dealers, partners and consumers alike,” said Andy Teh, CEO of muv. Car dealers who are interested in finding out more about this opportunity may visit www.muv-x.com
