Singapore’s prestigious bank DBS has made a foray into the used car market with the official launch of DBS Car Marketplace. The bank has partnered with sgCarMart and Carro and is touted to the biggest direct seller-to-buyer marketplace in the nation.
The bank has stated that buyers can get an online interest rate of 1.99 per cent per annum (effective interest rate of 3.77 per cent per annum over a seven-year loan) on their DBS car loan when they buy a vehicle through the marketplace this month.
Interestingly, the interest rate is lower compared with the industry average of 2.98 per cent. Meanwhile, from now until Oct 4, sellers can list on both sgCarMart and Carro at one go at no charge.
DBS said, “The car marketplace will provide diverse functions, such as an on-site car budget calculator which provides the estimated loan amount the buyer is eligible for, and then serves them a list of cars based on their budget. If buyers find a car they are interested in, they can arrange with the seller directly online for a test drive. Both buyers and sellers will be fully guided and enjoy free paperwork services for car ownership transfers.”
With 3,500 direct-owner car listings, DBS Car Marketplace is Singapore’s first online consumer marketplace helmed by a bank.
Tok Geok Peng, executive director of Secured Lending at DBS Bank, said, “The car loan segment is one of the key contributors to DBS’ loan growth. The car loan remains an essential financing tool for our customers as a car is a high-value item.”
As DBS enters into the online consumer space, analysts say the tie-up helps add revenue to the bank’s business and opens the channels for more of such ventures for banks going forward.
“By entering into this arena, DBS is able to find a new avenue of earnings and also generate business for its existing car loans,” said, Lau Geok Theng, Associate Professor in the Department of Marketing, NUS Business School.