GT Capital ventures into used car warranty

GT Capital Holdings Inc., the flagship of the Ty family, is venturing into the business of providing vehicle warranty for used cars in the country through Premium Warranty Services Philippines, Inc. (PWSPI).

In a disclosure to the Philippine Stock Exchange, GT Capital said PWSPI starts commercial operations in the country, bringing to the Philippines Japan’s number one automotive warranty provider.

PWSPI employs a web-based app to record inspection results and automatically generate digital reports for buyers and dealers. It is also used to maintain the vehicle’s warranty claim applications and history.

PWSPI is a joint venture between GT Mobility Ventures, Inc. (GTMV), itself a partnership between GT Capital Auto Dealership Holdings, Inc. (GTCAD) and Mitsui & Co, Japan, and Premium Group Co. Ltd. (PGC).

“In the Philippines, acquiring pre-owned vehicles is usually on an ‘as is, where is’ basis, leaving buyers fending for themselves,” said PWSPI and GTCAD Chairman Vince Socco.

He added that, “Our goal at PWSPI is to help create a more transparent secondary car market that elevates Filipino car owners’ experience when buying and selling pre-owned cars.”

GTCAD, a wholly owned subsidiary of GT Capital Holdings, Inc., was established in 2016 to manage and grow the portfolio of the GT Group in the automotive sector.

Premium Group is among the latest partners of GTCAD in its growing suite of ventures. The largest automotive warranty provider in Japan, it has more than 1 million total warranty contracts and 23,500 partner dealers.

Tokyo-based Premium Group, which has 14 years of experience in the industry, builds on its success in Japan to continue expanding its market footprint both locally and overseas.

Anticipating sustained growth in Asia’s automotive market, the company expanded its presence to Thailand and Indonesia and now the Philippines.

With pre-COVID double-digit expansion in the Philippine automotive market, PGC saw how Filipino car buyers are seeking new solutions to their car purchasing and ownership experience, particularly in the used car segment.

Seeking to transform the purchasing and selling experience for pre-owned cars, PWSPI will work with a wide range of car brands. Its suite of services includes an extensive 188-point inspection on any used car, coupled with a detailed report on the existing state of the inspected vehicle.

PWSPI offers an on-demand service that certifies a vehicle’s condition based onits engine, body and frame, undercarriage, interior and exterior condition, and registration details. Premium Inspection can be used to identify eligible vehicles that can be covered by PWSPI’s warranty offering.

Customers may choose from a variety of options ranging from comprehensive coverage across all the vehicles’ mechanical and electrical components to limited coverage for only the vehicles’ engine and transmission. They may opt for either a one-year or a two-year coverage.

PWSPI is partnering with a network of service shops across the country to ensure timely and convenient warranty repairs. It is also introducing a proprietary app that will provide customers with a practical platform for claims and other services.