DBS launches online marketplace for transacting cars

Local bank DBS has moved from providing loans for vehicles to selling them after launching the DBS Car Marketplace yesterday.

It said in a press release that the online one-stop-shop for consumers to buy and sell cars is the first such marketplace in Singapore to be managed by a bank.

Partnering with popular online car sales portals sgCarMart and Carro, the new DBS venture is Singapore's largest direct car marketplace.

Those who use the new platform can also list on sgCarMart and Carro for free, with listing fees waived until Oct 4.

Consumers will have access to nearly 3,500 direct-owner car listings as well as several exclusive benefits. sgCarMart has the biggest database of new and used cars for sale here, with 40 million views and 2.6 million visitors every month.

Car marketplace start-up Carro guarantees its customers' cars will be sold in 30 days, while buyers of these cars will enjoy a six-month warranty.

The launch by DBS follows an announcement by the Monetary Authority of Singapore in June, relaxing certain rules on "anti-commingling" that will allow banks to invest their funds in certain non-financial businesses.

This allows banks to operate digital platforms that match buyers and sellers of consumer goods and services, and online sale of such goods or services.

The bank's head of consumer banking (Singapore), Mr Jeremy Soo, said: "DBS Car Marketplace exemplifies how we are reimagining banking, using digital technology and innovation to extend our reach.

Our insights indicate that consumers increasingly value transparency and simplicity, particularly in large purchases such as cars.Mr Jeremy Soo, head of consumer banking (Singapore) at DBS

"Our insights indicate that consumers increasingly value transparency and simplicity, particularly in large purchases such as cars."

DBS is also offering an online interest rate of 1.99 per cent per year on loans when consumers buy a car from its marketplace until Aug 31.

Mr Soo said the portal would provide relevant financial and product information, and ensure that buyers and sellers have "full control and transparency over every stage of the process".

DBS had linked up with Carro last December to launch a platform leveraging the bank's website traffic to connect potential car buyers and sellers.

Carro chief executive Aaron Tan said yesterday: "We believe that the trend to democratise the buying and selling of vehicles will continue, and will become the preferred choice for consumers looking to get better returns and more assurance for their sale and purchases."

sgCarMart general manager Vincent Tan said: "We see a huge opportunity to tap into this growing market and help speed the growth along."

Two second-hand car dealers told The New Paper that they did not feel threatened despite now having to compete with such a major player as DBS.

A Henly Enterprises sales executive who wanted to be known only as Mr Lim, 54, said: "Our customers will always come back to us. It's the service that makes a difference, and nothing beats the personal touch at a place like ours."

Mr Vincent Lim, a 50-year-old assistant manager at TS-Wheelers Holdings, said he will be keeping an eye on DBS Car Marketplace.

"We've had different online portals come into the picture, so I don't think it will affect my business because my customers will always come back," he said.

"But I'm going to observe how this plays out."