The strong growth in second-hand asset financing reported by Verimoto at the end of June has held strong, with the market continuing to “rebound strongly” as increasingly money conscious Aussies opt for used vehicles rather than new.
The automated second-hand asset verification and inspection platform saw a 35% increase in second-hand asset financing requests in July as compared to the month before.
According to the group, second-hand car financing is underpinning the growth. Following a 40% plummet in April, second-hand car verifications increased by 40% in May, 25% in June and then a further 46% in July.
“According to our data, July was a record month for second-hand vehicle verifications,” said Verimoto CEO Peter Hewett.
“We expect second-hand sales to remain steady throughout the year, or even grow, as Australians become more cost-conscious in their decisions, buying used quality rather than new. We’ve seen this in July, as second-hand vehicle sales grew by 46%, while new vehicle sales declined by 34%.”
This trend was also corroborated by Gumtree data, as the group shared that from April through June, there was a 19% increase in searches for used cars as compared to the January through March period; conversely, the Federal Chamber of Automotive Industries (FCAI) reported the 28th consecutive month of new car sales declines.
From the same minds behind document collection app Ezidox, Verimoto was developed with Macquarie's Banking and Financial Services Group and Lakeba Group to utilise smartphone technology to enable seamless identity and asset verification.
Especially timely given current social distancing restrictions, the platform enables brokers to obtain asset financing efficiently through removing the need for physical inspections of assets.
“As COVID-19 lockdowns continue, brokers need alternatives to verify assets without the need for physical inspections. Verimoto’s 100% contact free,” said Hewett.
“Even in lockdown, some people need to acquire certain assets, whether for work or for personal reasons. To help brokers support their customers, we are increasing our capacity to facilitate virtual verifications of assets. Giving brokers the ability to green light fast financing for their customers no matter the situation.”