Better transparency of the historical information on used cars and accurate vehicle conditions are the key elements that will determine the future of the business in Malaysia.
And to make the necessary structural changes that will bring transparency to the used car industry is to empower consumers and dealers alike.
This is the mission of Jeffrey Ong, CEO of myTukar who told Business Today the company is creating a strong used car infrastructure to strengthen the integrity of the industry.
“We are also investing to create a strong used car infrastructure to make quality and affordable used cars available for everyone in every corner of Malaysia as long as you have an internet connection.
“We have plans to structurally enhance the used car industry by empowering end consumers that are buying used cars through better transparency of vehicle historical information and accurate vehicle conditions – giving buyers peace of mind when purchasing a used car, anywhere and everywhere,” he says in an email interview.
To bring this transformation into the business, Jeffrey says the industry has to go through the stages of digitalisation and the need to empower local used car dealers working with MyTukar.
“Empowering used car dealers means empowering them to choose what they like online. They can review our detailed inspection report of every car that is listed in our bidding platform with more than 120 inspection points and 100 pictures of a car.
“We have more than 500 cars listed in our bidding platform daily and they can just pick and choose the cars they want like buying a grocery – it’s super easy.
“Once they’ve purchased the car, we then deliver the car right to their showroom within days after the purchase. It’s no different than buying a shirt online,” he says.
The traditional used car dealers working with MyTukar have already digitised their procurement side of the business. This is allowing them to grow their business because they now have access to nationwide supply.
New Strategy For Dealers
myTukar is working on a 2-pronged approach, the first is to ensure that dealers have a steady supply of used cars to run their businesses and the second is to ensure that our dealers are financially capable to grow their business.
The company also offers financing, being the only used car platform & used car financier that has kick-started financing in East Malaysia.
For Jeffrey, this is how the company recognises the importance of supporting its customers regardless of their geographical location.
myTukar has also implemented AI-driven lending metrics to support its dealers.
Many dealers are sole prop companies and may not have complete or strong financial reporting, even if they’re running a strong and profitable used car business.
It assists the dealers mainly through the credit approval process, placing higher weightage on live data regarding their business conditions “through their purchasing and payment behaviours rather than looking at past data from financial reporting.”
Finally, Jeffrey believes there is a brighter future for used car dealers if they go digital, as it will eliminate all geographical boundaries the traditional business have.
“They should also look to working with the right partner for purchasing & financing. This is important, as it is crucial to place trust in a partner that has everyone’s interest in mind. Sometimes, when something is too good to be true, it is,” he says.