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Sgcarmart moves into financial services

ChaosMyth

By ChaosMyth,
in General Car Discussion

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ChaosMyth

ChaosMyth

5th Gear

SINGAPORE - Singapore Press Holdings-owned sgCarMart has started a financial services arm to muscle in on the billion-dollar car-financing market.

 

The car portal will offer financing to used car dealers for their vehicle inventory as well as to car dealers to offer hire purchase loans to buyers.

 

sgCarMart's wholly-owned online auction subsidiary, Quotz, will take a 30 per cent stake in sgCarMart Financial Services for $1.5 million.

 

The remaining 70 per cent of the venture is held by T Financial (51 per cent) and five other parties, SPH said in an announcement to the Singapore Exchange.

 

T Financial is a fully-owned subsidiary of Toh Capital, which used to be a major shareholder in four used car dealerships.

 

The other shareholders are car trader Lake View Group and individual investors from the management team of sgCarMart.

 

https://www.straitstimes.com/singapore/transport/sgcarmart-moves-into-financial-services?utm_medium=Social&xtor=CS1-10&utm_source=Facebook#Echobox=1541585998

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Vratenza

Vratenza

Supersonic

I find that there is conflict of interest in the setup.

 

Used car dealers taking stake in Quotz and related financial services?

 

How do I know my car quote is the available highest in the market and not shunted to the shareholding dealer? Where is the transparency now? 

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Soya

Soya

Supersonic

Subject to MAS ruling of car loans same as the banks or not ah? [laugh][laugh][laugh]

On paper probably yes

 

But some used car ads that was,say, $100k all along mysteriously became more expensive at $120k the next day n the day after it, the car is SOLD!

 

I’ll leave it to one’s imagination why ppl suddenly buy the car when it becomes more ‘expensive’....

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Tianmo

Tianmo

Hypersonic

I find that there is conflict of interest in the setup.

 

Used car dealers taking stake in Quotz and related financial services?

 

How do I know my car quote is the available highest in the market and not shunted to the shareholding dealer? Where is the transparency now? 

 

No lah, Quotz remain as wholly-owned by sgcarmart lah.

 

It is Quotz investing in the new start up, taking up 30% of the total share, making it the 2nd biggest share holder after T Finance. 

 

I dont think Quotz ever marketed that they will give the highest quote available  in the market, rather they will put your car up to more than 200 dealers and inform you of the highest quote.  It is the highest quote among the 200 plus dealers and not the highest quote available  in the market. 

 

You can always take that quote and call a few other dealers to compare it yourself mah. Does it matter if it is transparent or not as long as the quote is highest you can find? You want to sell your car at highest price or you doing check and balance for them?   [laugh]  [laugh]  [laugh]

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Soya

Soya

Supersonic

To be fair, i hv used quotz a couple of times and the final bidded price is definitely higher than what ADs quoted for trade in. But then, ADs usually lowball anyway so the bar’s pretty low....

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Vratenza

Vratenza

Supersonic

Yeah, I sold 2 cars via quotz. Decent mixed bag of experience. One ok, the other was a scum bag who lowered the offer price with all sorts of excuse.

 

I am only informed of the top offers. But I have to take their word that the offer was the top offer among 200 dealers.

 

I can either take their professionalism and transparency that the bidding process has been transparent such that no single dealer has an unfair advantage in the bidding or a group of them are not in collusion to keep the price lower (cartel?).

 

Of course I can do my homework and still go around asking for independent quotes but we all know that once your car plate is put out there, those in the industry already know you are in the market to sell or they would have flagged u as one of the cars from quotz they have bidded on. Yes I probably watched too many conspiracy theory movies. :D

 

That's the reason why I am skeptical when they mention 2nd hand car dealers going into financial business with Quotz instead of Quotz remaining an "independent" arbiter in the car bidding process.

 

 

 

 

 

No lah, Quotz remain as wholly-owned by sgcarmart lah.

 

It is Quotz investing in the new start up, taking up 30% of the total share, making it the 2nd biggest share holder after T Finance. 

 

I dont think Quotz ever marketed that they will give the highest quote available  in the market, rather they will put your car up to more than 200 dealers and inform you of the highest quote.  It is the highest quote among the 200 plus dealers and not the highest quote available  in the market. 

 

You can always take that quote and call a few other dealers to compare it yourself mah. Does it matter if it is transparent or not as long as the quote is highest you can find? You want to sell your car at highest price or you doing check and balance for them?   [laugh]  [laugh]  [laugh]

 

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Tianmo

Tianmo

Hypersonic

On paper probably yes

 

But some used car ads that was,say, $100k all along mysteriously became more expensive at $120k the next day n the day after it, the car is SOLD!

 

I’ll leave it to one’s imagination why ppl suddenly buy the car when it becomes more ‘expensive’....

 

 

The set up is also supplying funds to dealers to provide in house loans leh, and if I am not mistaken, currently in house loans not subject to the same MAS ruling and interest is so much higher. 

 

Anyway, i think it is common business ideas to move in the direction, next on the line we likely going to see their own insurance and workshops, its all in the chain lor. 

 

And just this morning, I also read of another 20 car dealers, led by CarTimes Automobile setting up their own portal ( to be launch in early 2019) to compete with sgcarmart and other sites. 

 

So its after all everyone trying to a have a grip over the market and lead it. Willing seller willing buyer lor.. [laugh]  [laugh]  [laugh]

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Mason016

Mason016

Supersonic

the risks passed on from the bank to business entities. I think the management of loans is a concern.

 

came across this article yesterday.

https://www.channelnewsasia.com/news/business/look-at-where-debt-has-gone-mas-chief-warns-of-3-shifts-in-10904600

 

Maybe the finance savvy ppl can advise... I'm a bit clueless ..

Sounds like CDOs in another guise. [laugh]
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Jp66

Jp66

5th Gear

today on ST paper - "Used car dealers to set up 'largest online portal"

Led by Mr Eddie Loo, managing director of CarTimes Automobile, the group of 20 traders is raising $5 million with the aim of rolling out the site by early 2019......

 

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StreetFight3r

StreetFight3r

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This is why Quotz launched their new service awhile ago. 

 

https://www.straitstimes.com/lifestyle/online-auction-site-quotz-pays-sellers-first

 

So from my understanding Quotz has a workshop now to do inspection of our vehicles which will then be put up for bidding. After bidding closed, Quotz will pay vehicle owner first. Then dealer cannot say this and that wrong with the car. 

 

Dunno exactly how it works but from the article this was what i understand lor.

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Soya

Soya

Supersonic

This is why Quotz launched their new service awhile ago.

 

https://www.straitstimes.com/lifestyle/online-auction-site-quotz-pays-sellers-first

 

So from my understanding Quotz has a workshop now to do inspection of our vehicles which will then be put up for bidding. After bidding closed, Quotz will pay vehicle owner first. Then dealer cannot say this and that wrong with the car.

 

Dunno exactly how it works but from the article this was what i understand lor.

This seems to be a new initiative by Quotz. Probably in response to the mountain of complaints it got where some dealers who secured the winning bid go n lowball the seller directly after that
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Viceroymenthol

Viceroymenthol

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SINGAPORE - Singapore Press Holdings-owned sgCarMart has started a financial services arm to muscle in on the billion-dollar car-financing market.

 

The car portal will offer financing to used car dealers for their vehicle inventory as well as to car dealers to offer hire purchase loans to buyers.

 

sgCarMart's wholly-owned online auction subsidiary, Quotz, will take a 30 per cent stake in sgCarMart Financial Services for $1.5 million.

 

The remaining 70 per cent of the venture is held by T Financial (51 per cent) and five other parties, SPH said in an announcement to the Singapore Exchange.

 

T Financial is a fully-owned subsidiary of Toh Capital, which used to be a major shareholder in four used car dealerships.

 

The other shareholders are car trader Lake View Group and individual investors from the management team of sgCarMart.

 

https://www.straitstimes.com/singapore/transport/sgcarmart-moves-into-financial-services?utm_medium=Social&xtor=CS1-10&utm_source=Facebook#Echobox=1541585998

Toh Capital:

 

https://sg.linkedin.com/in/ting-feng-toh-8ba48950

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