Used car lots are being recruited to join the platform, and the two companies hope to expand pre-owned offerings throughout Mexico starting with capital Mexico City, Creditas country manager Gabriela Rolon said.
“This is also very good for sellers,” Rolon said, citing the ease of transactions, adding that prospective buyers will be able to buy car lots knowing that a specific amount has been approved for their down payment.
In Mexico, demand for used cars has risen steadily alongside supply chain disruptions exacerbated by the COVID-19 pandemic and the Russian invasion of Ukraine, according to industry experts.
In the first half of this year, MercadoLibre searched for cars with less than 40,234 kilometers and less than five years.
“I think that for someone who, for example, wants their first car and has no credit history, it can be a super option for someone who wants an older car, which is perhaps cheaper because it is enough for them,” said Ugalde. .
The Argentine platform MercadoLibre has largely served as online classified ads so far for cars, Ugalde said, with users selling cars to others without transactions through the website.
Ugalde added that MercadoLibre aims to verify all of its users before the end of the year to prevent scams that have prompted the Mexican government to issue warnings.
The pre-owned and used segment seems to be starting to be a growing business area , since more and more competitors are observed in the market. Kavak, one of the first Mexican unicorns to reach a valuation of more than 1,000 million dollars, stands out as part of this list, as well as other companies that are beginning to gain more strength, such as OLX Autos and Odetta.
With information from Reuters.