New binding feature for online car auction service Quotz

Singapore

ONLINE car auction platform sgCarMart has introduced a new feature to its sgCarMart Quotz (Quotz) service that would give sellers greater assurance on the final sale price after the end of a bidding process.

Incorporated in 2007, Quotz gives car owners and sellers access to over 500 car dealers, who can bid for a listed vehicle through a live bidding system.

In past instances where the deals were finalised offline with the car dealer, delay and pressure tactics were used to get sellers to offer a lower price than the indicative auction price.

To address this issue, Quotz has introduced a binding offer feature to protect the seller's interest.

"If the dealer backs out from the deal, we would ban the dealer from advertising in sgCarMart," stressed Quotz director Vincent Tan.

This also minimises the risk of fraudulent cases arising from offline transactions after the auction closes as sellers are left to deal directly with the winning bid car dealers.

"We have documented a few cases of fraud, where the car dealer took ownership of the vehicle but the cheque to the seller bounced. We could not help the sellers because the deals were done offline," added Mr Tan.

To kickstart the auction process, sellers can first book an appointment with Quotz. Then drive the vehicle down to Quotz where it undergoes a quick 188-point professional inspection and photo-taking before it is listed on Quotz's bidding platform.

With an open, real-time bidding system, it allows a user to obtain the highest selling price for his car within an hour. The platform gives the user the flexibility of accepting the offer only if the price is right, with no obligations to sell.

Once the price is accepted, the seller gets paid immediately and the car can be handed over in two weeks' time.

"The inspection and auction process usually takes an hour. So after the auction, if the seller agrees to sell and hand over his car immediately, we are able to make a digital payment to the seller on the spot," said Quotz director Vincent Tan.

This service is the first of its kind in the industry where the seller receives a binding offer after the end of the auction and Quotz buys the car on behalf of the winning car dealer.

Since September 2018, car sellers who transacted using the Quotz platform have been assured of receiving full payment for their vehicle. This is possible because Quotz deals directly with the car dealers, hence reducing the risk of fraudulent activities for sellers.

Payment is instant as Quotz adopts the Fast and Secure Transfers ("FAST") digital payment system that allows for transfers of up to S$200,000.

Car sellers have all to gain as the service comes with a S$100 guarantee that it will provide the highest dealer offer possible in the market.

"Our market share is less than 2 per cent. Most sellers still choose to trade-in their cars out of convenience. They don't realise that we are able to provide a service that allows them to sell their vehicle for a higher price with added convenience," said Glenn Ong, general manager of Quotz.

Quotz's auction service fee is currently priced at S$38. sgCarMart is a subsidiary of Singapore Press Holdings, which owns The Business Times.