Radana Finance Rises Used Vehicle Financing Portion

JAKARTA May 21 2015—Amid declining sales of new vehicle PT Radana Bhaskara Finance Tbk. (HDFA) predicts the portion of new financing for used vehicle will increase this year.

President Director of Radana Finance Evy Indahwati said the company is currently boosting the sales of used vehicle that was launched in the second half of 2014.

“We predict the portion to rise to 30% for used vehicle. The reason is because used car is new business that will likely grow” she told Indonesia Business Daily Wednesday (5/20/2015).

Radana Finance managed to channel new financing of IDR1.7 trillion last year. New motorcycle dominated by 71.9% or IDR1.37 trillion followed by used motorcycle 27.6% or IDR256 billion and new car 0.5% or IDR68 billion.

Evy is optimistic car sales will increase this year so the contribution of used vehicle will reach at least 30% while new vehicle will shrink by 70%.

“Perhaps car is still below 10%. It is still crawling but the growth will be significant” he added.

Throughout this year the company plans to open 10 branch offices for car financing. Some have been started in Cimahi Surabaya Malang and Medan.

In addition he also believes the portion of Islamic finance in the company would increase to 20% this year. Islamic finance contributes to 12% of total new financing last year.

Until the end of the year the company targets to reap a net profit of IDR76.96 billion or 50% higher than IDR38.48 billion last year. Read more..