Krungsri Auto turns to Internet to boost used-car lending

During the two-year slowdown in used-car sales following the government’s first-car tax-incentive programme, Krungsri Auto launched www.krungsrimarket.com last September to help its authorised dealers move inventory and reduce costs, managing director Pairote Cheunkrut said yesterday.

After introducing the website to tent dealers, the company is now promoting it to end-users.

It hopes loans from e-applications by registered website members will balloon to Bt200 million this year from Bt64 million last year.

While the website is known to the mass market, its profile in the used-car market is expected to rise, helping used-car prices to rev up by about 5 per cent from the deceleration of 40 per cent in the past two years.

The used-car market is expected to pick up by 4 per cent this year, as prices have stabilised. In the first three months, used-car sales sped up by 4 per cent while new-car sales went 12 per cent in reverse.

Under Krungsri Auto’s three-year plan, online trading will be the strategy to revolutionise the used-car market and strengthen its relationship with dealers.

Online lending is expected to generate significant results in three years.

Competition has not changed for a long time. The used-car market is now familiar with lower down payments and low interest rates.

Krungsri wants to distinguish itself by building the new platform for dealers and responding to the new buying behaviour of consumers who look for goods via online channels.

"Used car" now ranks among the top five searches on Google.

"If dealers has channel in building unity, they can release inventory quickly and control costs during the uncertainty in used car prices," he said.

Last year, Krungsri Auto’s portfolio expanded by 2 per cent to Bt229 billion, of which 48 per cent was for used-car financing. Used-car loans are up by 2-3 per cent from the year before.

This year, the company projects outstanding loans racing ahead by 3 per cent to Bt236 billion, Pairote said.