EON, myTukar and Bank Muamalat are working together on the new Muamalat Step Up Auto Financing-i, a tiered vehicle financing scheme offering lower instalments for the first three years. The bank says that this will assist customers in reducing the early financing cash flow burden, and own their dream vehicle.

Muamalat Step Up Auto Financing-i is exclusive for the range of Proton and Mitsubishi cars under the Edaran Otomobil Nasional (EON) network. A collaboration with myTukar means that customers can sell the vehicles to the used car specialists at the end of the three-year tenure, at a price agreed at the beginning of ownership. This is like the ‘guaranteed future value’ scheme seen elsewhere.

Although common with in-house financing from premium brands such as Mercedes-Benz and BMW, Bank Muamalat is the first bank to introduce step-up financing with guaranteed buy-back value. With Muamalat Step Up Auto Financing-i, monthly payments can be up to 33% lower compared to conventional financing, the bank says. The scheme is shariah compliant.

After three years of ownership, customers can choose to either continue monthly payments at a new rate, or exchange and sell the vehicle for a new unit through 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 Kamarudin, president and CEO of Bank Muamalat.

“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. EON is offering two Mitsubishi vehicles and six Proton models for customers to choose and participate in this scheme,” said EON CEO Akkbar Danial.

“The partnership will 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,” said Ernest Chew, CFO of Carro, the parent company of myTukar.

“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,” he added.