Petronas AutoExpert recently joined forces with Direct Lending to introduce a fully digital car service instalment plan. This strategic collaboration presents a Shariah-compliant option for Malaysian car owners, adding convenience and flexibility to their vehicle maintenance experience.
Embracing the Buy Now Pay Later (BNPL) framework, Petronas AutoExpert is demonstrating its dedication to simplifying and enhancing customer lives. With a focus on providing a competitive edge to its network of service centres, the partnership allows car owners to distribute their service and repair expenses over a period of up to 12 months. The service will be accessible across all 55 Petronas AutoExpert centres throughout the nation.
In just three simple steps, prospective customers can secure financing seamlessly. By inputting their information, submitting identification documents along with the latest three months’ bank statements, and initiating the process with the initial payment, monthly payments and the financing agreement can be established. These steps can all be executed digitally through a smartphone. Petronas AutoExpert patrons can easily apply for the instalment plan by scanning the provided QR code at participating service centres.
In light of this collaboration, Petronas AutoExpert stands to gain from this innovative offering for a minimum of two years at no additional cost. Moreover, Petronas employees will now be entitled to preferential financing rates when utilizing the instalment plan at any Petronas AutoExpert center. This not only facilitates immediate invoice settlement for Petronas AutoExpert but also fosters robust cash flow and the potential for increased sales growth.
Currently, many vehicle owners in Malaysia often defer maintenance due to financial constraints. The lack of flexible and convenient Buy Now Pay Later options within the local market further exacerbates this issue. The Financial Stability Review by Bank Negara Malaysia (BNM) indicates a steady 2022 growth in the BNPL model, particularly among users aged 18 to 30, constituting 44 percent of users. However, not all BNPL services adhere to Shariah principles, mainly due to interest involvement, prohibited items, and non-compliance with Islamic permissibility standards in terms and conditions.
Direct Lending’s car service instalment plan stands out for its Shariah-compliance, endorsed by Amanie Advisors, a reputable global Islamic Finance Advisory firm. This endorsement ensures accessibility to a wide range of users. Since 2023, the company has successfully conducted over 130,000 financing eligibility assessments, solidifying its commitment to providing accessible and compliant financial solutions.
