KUALA LUMPUR: Bank Muamalat Malaysia Bhd has launched Muamalat Step Up Auto Financing-i, a tiered vehicle financing scheme, offering affordable-to-own car financing with lower instalments for the first three years, to assist customers reduce the early financing cash flow burden, and own their dream vehicle.
This offer is exclusive for the entire range of Proton and Mitsubishi cars under the Edaran Otomobil Nasional Bhd network only.
Aimed at offering affordable auto financial solutions to all market segments, be it to younger customers for their first car, those who need to change their car, or simply those who want to purchase another car, the Muamalat Step Up Auto Financing-i is the solution to achieve their needs.
Even better value is assured for customers, as in a collaboration with myTukar, they can resell the vehicles to the used car specialists at the end of the three-year tenure at a price agreed at the beginning of the ownership.
Bank Muamalat is the first bank to introduce a vehicle financing package that allows customers to enjoy lower and flexible monthly payments with a guaranteed buy-back value.
The unique programme means, depending on the tenure, monthly instalments under the Muamalat Step Up Auto Financing-i can be up to 33% lower compared to conventional financing.
The scheme is offered for financing periods of five, seven and nine years.
Bank Muamalat president and chief executive officer Khairul Kamarudin said that the Muamalat Step Up Auto Financing-i is a Muamalat-i Vehicle Financing (MVF-i) under the Shariah concept of Murabahah Purchase Orderer (MPO).
“It is different from a conventional vehicle financing plan which requires the customer to pay the same monthly instalments throughout the financing period. The lower instalments offered can help customers reduce their cash flow burden, and provide savings and additional cash for investment and other purposes,” said Khairul.
After three years of ownership, customers can choose to either continue monthly payments at a new instalment rate, or exchange and resell the vehicle for a new unit through myTukar, which offers a guaranteed high resale value.
Customers have the option to trade in their car, upgrade to a newer one or receive cash-back for their car.
The scheme was made possible through a joint effort between Bank Muamalat, EON and myTukar.
“We are thrilled to be working with EON and myTukar to offer financing solutions to our customers. Our vision has always been to create an end-to-end integrated on-line vehicle ecosystem; our partnership brings us one step closer, as we are able to make auto financing more affordable,” said Khairul.
EON chief executive officer Akkbar Danial said that the launch of such an innovative financing scheme would be able to meet the needs of customers who want more value and solutions to meet their financial needs.
“In line with EON’s direction to lead and become an excellent automotive service provider, we believe the collaboration will further improve our market share.
“Being the largest Mitsubishi and Proton network operators nationwide, EON is able to offer a variety of cars from the two renowned brands to our customers through all EON branches. EON is offering two Mitsubishi models and six Proton models for customers to choose and participate in this scheme,” said Akkbar.
Chief financial officer of Carro which is the parent company of myTukar, Ernest Chew, said myTukar is honoured to embark on the first-of-its-kind partnership would play a major role in DRB-HICOM and Bank Mualamat’s end-to-end engagement, and therefore support their whole new car upgrade eco-system by creating a seamless car transfer channel in the form of step-up loan tenure.
“Customers who are not keen on the buy-back option at the end of the third year can come to myTukar anytime and we will offer them a competitive market rate. This bank partnership is a huge validation of our proprietary A.I-enabled vehicle residual value pricing algorithm - which we already actively deploy for our financing activities,” added Chew.
Customers can obtain more information on the services and financing offered by Bank Muamalat at www.muamalat.com.my or by calling the Customer Service Centre at 03-2600 5500.
