SPH owned sgCarMart has started a financial services arm to muscle in on the 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.
The new entity has a paid-up capital of SG$5 million and will be headed by Joe Chua, who had previously worked with GE Money, Standard Chartered and OCBC Bank. Its source of funds will be from its paid-up capital, as well as from banks.
sgCarMart general manager Vincent Tan said that its existing dealer management system contains real-time data of over 90% of all used car dealers in Singapore, which gives the company visibility over stock levels and sales turnover. The team at sgCarMart aim to appraise the credit profile of the dealers and price its loans according to the risk.
sgCarMart’s wholly owned online auction subsidiary, Quotz, will take a 30% stake in sgCarMart financial services for SG$1.5 million. Meanwhile, 70% of the venture will be held by T Financial (51%) and five other parties, according to SPH. 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.
Marketing has reached out to sgCarMart for additional information.