EON, myTukar and Bank Muamalat launch progressive-i automatic financing – reduced installments for the first three years
EON, myTukar and Bank Muamalat are working together on the new Muamalat Step Up Auto Financing-i, a tiered vehicle financing program offering lower installments for the first three years. The bank says it will help customers reduce the cash flow burden of early financing and own the vehicle of their dreams.
Muamalat Step Up Auto Financing-i is exclusive for the Proton and Mitsubishi line of cars from the Edaran Otomobil Nasional (EON) network. A collaboration with myTukar means that customers can sell the vehicles to used car specialists at the end of the three-year term, at a price agreed at the start of ownership. It’s like the “guaranteed future value” system seen elsewhere.
Although common with in-house financing of high-end brands such as Mercedes-Benz and BMW, Bank Muamalat is the first bank to introduce phased financing with guaranteed cash value. With Muamalat Step Up Auto Financing-i, monthly payments can be up to 33% lower than with conventional financing, the bank says. The scheme is Sharia compliant.
After three years of ownership, customers can choose to either continue monthly payments at a new rate or trade in and sell the vehicle for a new unit through myTukar.
“We are delighted to work with EON and myTukar to provide financing solutions to our customers. Our vision has always been to create an end-to-end integrated online vehicle ecosystem; our partnership brings us a little closer as we are able to make car financing more affordable,” said Khairul Kamarudin, President and CEO of Bank Muamalat.
“In line with EON’s drive to become a leading and excellent automotive service provider, we believe this collaboration will further improve our market share. Being the largest network operators of Mitsubishi and Proton nationwide, EON is able to offer a variety of cars from both renowned brands. EON offers customers two Mitsubishi vehicles and six Proton models to choose and participate in this program,” said EON CEO Akkbar Danial.
“The partnership will play a major role in the end-to-end engagement of DRB-Hicom and Bank Mualamat, and therefore support their brand new car upgrade ecosystem by creating a seamless car transfer channel in the form with a progressive loan term,” said Ernest Chew, Chief Financial Officer of Carro, the parent company of myTukar.
“Customers who do not want the redemption option at the end of the third year can come to myTukar at any time and we will offer them a competitive rate in the market. This banking partnership is a huge validation of our proprietary pricing algorithm of the residual value of vehicles enabled by AI – which we are already actively deploying for our financing activities,” he added.