EON launches leasing services

HIRE-PURCHASE: Company says My Leasenew scheme can be solution an alternative to lending guidelines woes

VEHICLE distributor Edaran Otomobil Nasional Bhd (EON) has launched "My Lease", a new leasing and fleet management services that it hopes can be a solution to the new lending guidelines woes for car buyers.

EON chief operating officer Azman Idris said My Lease is an ideal proposition for corporate clients with limited financial ability as it does not require a big amount to lease a vehicle.

"We are offering businessmen a good option to acquire vehicles for commercial proposes, where the normal hire-purchase is not made available to them," he said at the official launch of My Lease and new EON 4S centre (sales, service, spare part and spray painting) by Transport Minister Datuk Seri Kong Chong Ha here yesterday.

Speaking later, Azman said the company, which is part of DRB-HICOM Group, is promoting the leasing concept to corporate and commercial bodies.

However, there are plans to extend it to individuals.

"Depending on the type or model of vehicles required by customers, we may extend the leasing facility to individuals within this year," he said.

He said in Britain, between 70 and 80 per cent of people bought cars through the leasing concept.

"In Europe, they (customers) buy cars for necessity, not for the sake of owning. This is relatively a new concept in Malaysia and we hope to encourage more customers to lease vehicles," he said, adding that customers could save up to 25 per cent if they lease vehicles compared to the current hire-purchase agreement.

EON is perhaps the first vehicle distributor to introduce the leasing concept to the public in Malaysia.

It is learnt that vehicle distributor Spanco is also in the vehicle leasing business, but it only supplies vehicles to the government.

Azman said EON aims to lease a fleet of between 1,000 and 1,500 vehicles this year, and probably between 3,000 and 5,000 units in the next three years.

Its current customers, Pos Malaysia Bhd and Alam Flora Sdn Bhd, plan to acquire more than 1,000 units each within a year.

DRB-HICOM Leasing Sdn Bhd, formerly known as EON Inovasi Sdn Bhd, is a newly formed subsidiary incorporated under EON that manages the fleet management service and handles vehicles leased to customers.