Carsome introduces RM55.5 Million Dealer Alliance Support Program to boost Used Car Industry
Southeast Asia’s leading online used car selling service, Carsome recently launched the Carsome Dealer Alliance Support Program to create sales and growth opportunities for used car dealers through bonus rewards and credit lines.
The Carsome Dealer Alliance Support Program, worth up to RM55.5 million, facilitates sustainable development for Carsome’s used car dealers by giving them more value when they purchase inventories from Carsome, providing them with credit lines to improve their cash flows, and helping them move sales through advertising support.
As Malaysia eases out of the Movement Control Order (MCO), Carsome CEO and Co-founder Eric Cheng expresses optimism in the used car industry for the medium to long term. “We are aware of the short-term post-MCO cash crunch for everyone. However, we remain positive as more people value car ownership out of personal safety but are wary about budget control. This is a great opportunity for used car dealers to tap on growing demands for used private cars,” Cheng said.
Cheng’s view is substantiated by the Carsome Consumer Survey conducted in April 2020, which shows an expected 76 per cent decrease in the usage of ride-sharing services among consumers as they felt safer using their own vehicles and were uncomfortable sharing vehicles with strangers.
The Survey also provided insights on the short-term difficulties of used car dealers in Malaysia during the MCO. Business was affected for 70 per cent of used car dealers in Malaysia since the Covid-19 outbreak in December 2019. 79 per cent of the respondents saw decrease in income and among them, 32 per cent reported zero income.
“Through the Carsome survey, dealers expressed their needs for financial support to sustain their businesses currently. We believed that the Carsome Dealer Alliance Support Program is timely as a short-term boost to help used car dealers rebuild their businesses and finances”, Cheng added.
The Carsome Dealer Alliance Support Program offers the following benefits to Carsome’s registered used car dealers:
- RM5 Million Bonus Program: RM5 million is allocated as bonus rewards for used car dealers when they purchase from Carsome. The more cars they purchase from Carsome, the more cash reward they will receive;
- RM50 Million Ready Credit Line: the first 500 applicants will receive a RM100,000 ready credit line to fund the cars purchased from Carsome; and
- RM500,000 Advertising Support & Customer Referral Program: RM500,000 is allocated to help dealers advertise and promote their inventories on Carsome’s online platforms to reach out to more potential buyers. Carsome will reward RM1,000 cash to Carsome customers if they purchase a used car advertised on Carsome’s online platforms.