Indonesias Broom builds out automated assetbacked lending for used car dealers

News Summary

  • The Indonesian used car market is on a course for growth fueled by a number of trends: the increasing digitization in used car sales; a larger variety of finance options; and the COVID-19 pandemic, which pushed the idea of private car ownership.
  • However, the used car dealers Laras visited told him they could not afford to repurchase Laras’ car due to limited money in hand and working capital, only offering trade-ins instead.
  • “With Buyback, [car dealers] can optimize their inventory and accelerate the turnover, thus increasing their revenue; our app lets them manage the in and out flow easily and trade with other dealers in our ecosystem,” Laras said.
  • Broom says more than 5,000 used car dealers, its main target customers, now use its platform in Indonesia, contributing approximately 30.6% of new automotive sales in Southeast Asia.
  • The following year, it launched its flagship service, Buyback, to help used car dealers in Indonesia, many of whom lack access to capital.
  • Buyback provides dealers with “short-term working capital through a temporary car sale service with a repurchasing option” and dealer-to-dealer trading, making inventory management more efficient.
The Indonesian used car marketis on a course for growth fueled by a number of trends the increasing digitization in used car sales; a larger variety of finance options; and the COVID19 pandemic, w [+4274 chars]