Used car buyers can now get a warranty, with help from GT Capital
Ty family-led GT Capital Holdings Inc. seeks to uplift the local secondhand car industry by debuting into the car warranty business in partnership with Premium Group Co. Ltd. (PGC), Japan’s leading automotive warranty provider.
Premium Warranty Services Philippines Inc. (PWSPI), which aims to be the first in providing vehicle warranty for used cars in the local market, has started commercial operations, the conglomerate said in a disclosure to the Philippine Stock Exchange on Monday.
PWSPI is a joint venture between PGC and GT Mobility Ventures Inc.. The latter is a partnership between GT Capital Auto Dealership Holdings Inc. (GTCAD) and Mitsui & Co. of Japan.
“In the Philippines, acquiring preowned vehicles is usually on an as-is-where-is basis, leaving buyers fending for themselves. Our goal at PWSPI is to help create a more transparent secondary car market that elevates Filipino car owners’ experience when buying and selling preowned cars. We intend to deliver a much more value-driven experience for both buyers and sellers,” said Vince Socco, chair of PWSPI and GTCAD.
Larger market
“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,” Socco added.
The GT Capital group dominates the local automotive space through Toyota Motor Philippines Inc., which holds a record 45.6-percent market share as of first semester 2021.
Seeking to “transform the purchasing and selling experience for preowned cars,” PWSPI also unveiled plans to work with a wide range of car brands.
Its suite of services includes an extensive 188-point inspection of any used car, coupled with a detailed report on the existing state of the inspected vehicle.
PWSPI offers an on-demand service that certifies the condition of a vehicle based on its engine, body and frame, undercarriage, interior and exterior condition and registration details. “Premium” inspection can be used to identify eligible vehicles that can be covered by PWSPI’s warranty offering.
Variety of options
Customers may choose from a variety of options ranging from comprehensive coverage across the mechanical and electrical components of their vehicles to limited coverage for just the engine and transmission. They may opt for either a one-year or a two-year coverage.
PWSPI intends to team up 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 serve as a 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. INQ
