The market for secondhand cars in the country is expanding and is even outpacing the growth of brand-new vehicles, partly as a result of policies that limited the movement of people, particularly those using public transportation.
“Based on conservative estimates, the scale of the used car market is estimated at more than half a million units annually. This volume is far larger than the market for new vehicles and represents a very significant demand for our services,” said Vince Socco, chairman of GT Capital Auto Dealership Holdings Inc. (GTCAD), a unit of publicly-listed GT Capital Holdings Inc.
Last year, auto sales reached 248,171 units, based on figures from three major car associations.
“In the Philippines, acquiring pre-owned vehicles is usually on an ‘as is, where is’ basis, leaving buyers fending for themselves. Our goal at PWSPI [Premium Warranty Services Philippines Inc.] is to help create a more transparent secondary car market that elevates Filipino car owners’ experience when buying and selling pre-owned cars,” Socco said.
Socco, who is also the chairman of PWSPI, said the company is partnering with a network of service shops across the country to ensure timely and convenient warranty repairs. It is also introducing a proprietary app that will provide customers with a practical platform for claims and other services.
Initially, PWSPI will work through select online auto portals, used car dealers and financial institutions. It plans to eventually handle direct customer-to-customer transactions and expand its footprint throughout the Philippines.
PWSPI is a joint venture between GT Mobility Ventures Inc., a partnership between GTCAD and Mitsui and Co. Japan, and Premium Group Co. Ltd., Japan’s number one automotive warranty provider.
GTCAD said the Premium Group saw how Filipino car buyers are seeking new solutions to their car purchasing and ownership experience, particularly in the used car segment.
Seeking to transform the purchasing and selling experience for pre-owned cars, PWSPI will work with a wide range of car brands. Its suite of services includes an extensive 188-point inspection on any used car, and also with a detailed report on the existing state of the inspected vehicle.
Premium Group is among the latest partners of GTCAD in its growing suite of ventures. The largest automotive warranty provider in Japan has more than 1 million total warranty contracts and 23,500 partner dealers.