The company also opened physical points in Mexico where those interested in selling their cars could receive advice and evaluation. It also established three warehouses in Mexico City, Guadalajara and Monterrey to handle its inventory. Unlike other competitors, OLX Autos acquired any model regardless of brand, mileage and year, establishing the price based on physical-mechanical inspections and document review.
OLX Autos’ business model focused on achieving low margins but high inventory turnover. According to their records, they managed to drive an average of 10 days for their car turnover, compared to the market average of 45 days. Despite its focus on operational efficiency, the company faced challenges with demand outpacing supply at its warehouses.
What will happen to the customers?
The company expressed on its Twitter account that the decision will not affect existing purchase contracts and current inventory will continue to be available to consumers. The company will maintain a dedicated team to manage all stages of the closing process and to respond to customer concerns.
OLX Autos assured that all existing purchase contracts will be honored and that they will continue to provide support during the closing process. The guarantee offered by the company will also remain in force for vehicles purchased through OLX Autos.
Thank you💙 Important: cars with financing maintain valid credit with obligations and rights. The OLX Autos guarantee is maintained. 📌 Doubts procedures: whatsapp to 55 7888 7881 or [email protected] 📌 Credit doubts: 55 8854 8314 📌 Guarantee doubts: 800 4272684 pic.twitter.com/Z5RYjSCSSN
— OLX Autos Mexico (@OlxAutosMexico)
August 11, 2023
With information from Ivet Rodríguez