COMPANY COMMENT
RCS stands to benefit from financing of second-hand cars
Consumer finance company targets secured lending while MultiChoice welcomes new channel Newzroom Afrika
The surge in demand for used cars as more buyers become price conscious makes the idea of financing second-hand cars a plausible one for unsecured lender RCS. The consumer finance company introduced peer-to-peer vehicle finance late in 2018, though it really started pushing it in January. It is still too early to tell how far secured lending will go in increasing RCS’s minuscule market share. But what is certain is that there is a big market out there. Online car-trading platforms such as Autotrader are dominated by dealer adverts, which made up 98.8% of the 64,164 cars listed last Thursday. However, a quick peek at online classifieds site Gumtree shows that private sellers make up almost a third of listed cars while on OLX there were twice as many cars listed by private owners than by dealers. However, many other players have identified this opportunity too. Take Naspers’s online car-buying portal WeBuyCars; it has revolutionised the second-hand car-trade market, which until rec...
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