There may be a large potential marked in used cars in the Philippines. It is home to one of the fastest-growing used car markets in the world today, with strong growth in car sales buoyed by rising income levels, greater demand from middle-income groups, and challenging availability of public transportation. This $8 billion industry is dominated by small dealerships and family-run businesses that account for more than 90% of car transactions. 

However, not every buyer has the capability to pay for these vehicles in full. Banks are playing only a limited role in used car and dealership financing, leading to three times lower finance rates compared to Europe or the US. One player, however, hopes to change the odds for car buyers.

OneLot is a Philippine-based lending fintech company addresses the most pressing problem faced by used car dealers: the lack of access to affordable credit. They can be visited at www.onelot.ph or contactacted at [email protected].

OneLot’s loan products are geared towards the buy and sell cycles of car dealers, offering an unparalleled level of customer-centricity and flexibility. They handle loan applications and disburse capital in a matter of hours by leveraging an AI-enabled underwriting algorithm. Their proprietary loan management system ensures fast processing while simultaneously optimizing profitability and non-performing loan rates. The company was founded by Tommy Campos, Harm-Julian Schumacher, and Subramaniam Srinivasan who met in 2021 to build DART, a quick commerce grocery delivery app. 

For co-founder and CEO Schumacher, the challenges faced by Philippine car dealers resonate deeply with his own personal experience growing up around his family’s car dealership business in Germany. “I experienced first-hand how German financial institutions supported family-run dealerships like ours with a variety of loan solutions throughout the value chain, enabling them to accelerate their growth — a market feature that inspired the OneLot model to empower similar businesses in the Philippines.”

OneLot’s team leverages deep expertise in car dealership operations and SME financing within the Philippines, paired with decades of experience in digital innovation and AI. This combination enables them to solve critical challenges in the used car market. “Our platform was designed with the dealer’s needs in mind, avoiding the lengthy and cumbersome procedures typical in financing. Thanks to our AI-driven processes, we offer higher credit limits, more competitive interest rates, and faster fund disbursement than any other provider in the market,” explains OneLot CTO, Subramaniam Srinivasan.

Phillip “Ipe” Borleo, owner of PMB Cars in Quezon City, was among OneLot’s first customers. “As a used car dealer, OneLot’s services have been a game changer. With their support, I am now buying and selling 7-8 additional cars each month. And the process of drawing down funds is incredibly fast—taking just a few hours,” Borleo shared. 

Since launching earlier this year, OneLot has financed over 200 vehicles and recorded a remarkable 10-times revenue growth since the start of Q2 2024. This rapid expansion underscores the growing demand for OneLot’s innovative financing solutions in the competitive used car market.

“Once a dealer partners with OneLot, they can quickly expand their car inventory, leading to substantial increases in revenue and profitability. This is driving our customer retention rate, which exceeds 90%," notes Tommy Campos, COO of OneLot. The company plans to extend its services to more dealers as well as accelerate product and AI development in the upcoming months. About OneLot

OneLot specializes in offering working capital financing exclusively to used car dealers. The company's innovative approach allows dealers to access funding based on a pre-approved credit line, determined by a data-driven and AI-enabled assessment of their business. This financial support enables dealers to expand their inventory, cater to a broader customer base, and ultimately boost their profitability.