Transforming Car Financing in Malaysia: CARSOME Strikes Deal with JACCS

Breaking Down Barriers to Car Ownership

PETALING JAYA: Southeast Asia’s largest car e-commerce platform, CARSOME, has officially entered a strategic partnership with Japanese consumer finance company JACCS to make car ownership more accessible in Malaysia.

Addressing the Financing Gap

CARSOME recently made headlines for lending 50 cars for a month to victims of the gas pipeline fire in Putra Heights. This latest partnership aims to ease car financing, particularly for underserved buyers and used car dealers. It is designed to serve Malaysians who may not have access to traditional financing – such as gig workers, microbusiness owners, and customers with non-conventional credit histories – while also supporting the thousands of used-car dealers that make up the country’s automotive backbone.

Strategic Partnership

The collaboration, marked by a signing ceremony today at the CARSOME PJ Automall, seals an agreement first announced in February. Under the deal, JACCS acquires a 49% stake in CARSOME Capital – the financing arm of CARSOME – while the platform retains majority ownership of 51%.

Boosting Inclusive Financing

According to CARSOME co-founder and group CEO Eric Cheng, 80% of Malaysians purchase cars through financing. “In the market today, Malaysia’s financing accessibility is not at its very best yet,” he noted. “By leveraging technology and introducing more flexible financing options, we aim to make car ownership a priority for more people.”

Unlocking New Opportunities

With this injection of expertise from JACCS, which is part of the Mitsubishi UFJ Financial Group, CARSOME is poised to deepen its reach in Malaysia’s used-car financing space. “Beyond financial solutions, this partnership also reflects the confidence that JACCS has in our business model,” Cheng added.

Japanese Ambassador Commends Partnership

The ceremony was attended by key dignitaries including deputy investment, trade and industry minister Liew Chin Tong, and ambassador of Japan to Malaysia Shikata Noriyuki. Also present were Selangor investment, trade and mobility committee chairman Ng Sze Han, and MUFG Bank Malaysia CEO Motohide Okuda.

Building for the Future

JACCS president and chief operating officer Ryo Murakami expressed optimism about the long-term potential of working alongside CARSOME. “We have expanded our business into five Asean countries, with Malaysian being the fifth nation,” he said. “We look forward to driving business growth and contributing to Malaysia’s economic development. This partnership also opens the door to further collaboration across Southeast Asia.”

Key Offerings and Future Ambitions

The tie-up is expected to roll out a suite of targeted financial products developed through months of collaboration between both parties. Key offerings include streamlined loan approval and processing systems; new financing structures for wholesale inventory purchases; empowering dealers with greater liquidity and flexibility; and enhanced credit-assessment models. While the current focus is on Malaysia, both CARSOME and JACCS have hinted at ambitions to eventually scale their financing solutions across Southeast Asia.

Conclusion

The partnership between CARSOME and JACCS marks a pivotal shift in how auto financing is offered in Malaysia – making it more accessible, inclusive, and efficient. As the used-car market continues to evolve, this partnership is poised to make car ownership a reality for more people.

FAQs

• What is the partnership between CARSOME and JACCS?
  The partnership is a strategic collaboration between CARSOME, Southeast Asia’s largest car e-commerce platform, and JACCS, a Japanese consumer finance company.
• What is the goal of the partnership?
  The partnership aims to make car ownership more accessible in Malaysia, particularly for underserved buyers and used car dealers.
• What are the key offerings of the partnership?
  Key offerings include streamlined loan approval and processing systems, new financing structures for wholesale inventory purchases, empowering dealers with greater liquidity and flexibility, and enhanced credit-assessment models.
• What is the long-term ambition of the partnership?
  Both CARSOME and JACCS have hinted at ambitions to eventually scale their financing solutions across Southeast Asia.