MercadoLibre and Creditas encourage second-hand car lending in Mexico

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Argentinian online marketplace MercadoLibre is launching a partnership to enable MercadoLibre users to apply for used car loans in Mexico, in this undated handout illustration distributed to Reuters July 27, 2022. Mercado Libre/Handout via

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MEXICO CITY, July 28 (Reuters) – Argentinian online marketplace MercadoLibre and Brazilian financial services provider Creditas are launching a partnership to allow MercadoLibre users to apply for used car loans in Mexico, officials said on Thursday. companies.

MercadoLibre, Amazon’s ubiquitous rival in Latin America, has teamed up with Creditas in a bid to attract customers in a country with low credit penetration, MercadoLibre’s auto chief told Reuters at Mexico, Jaime Ugalde.

Lots of used cars are being recruited to join the platform, and the two companies hope to expand their semi-new offerings across Mexico starting with the capital city of Mexico City, said Gabriela Rolon, country manager of Creditas.

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“It’s also great for sellers,” Rolon said, citing the ease of transactions, adding that potential buyers will be able to buy lots of cars knowing that a specific amount for their down payment has been approved.

In Mexico, demand for used cars has steadily increased alongside supply chain disruptions exacerbated by the COVID-19 pandemic and Russia’s invasion of Ukraine, industry experts say. sector.

In the first half of this year, MercadoLibre is looking for cars under 25,000 miles (40,234 km) and under five years old doubled, according to company data.

“I think it can be a great option for someone who, for example, is looking for their first car and has no credit history, or someone who is looking for an older car because that’s what they want. ‘he can afford,” Ugalde said. .

MercadoLibre’s retail platform has so far largely served as online classifieds for automobiles, Ugalde said, with users selling cars to other users without transactions going through the website. .

Ugalde added that MercadoLibre aims to verify all of its users by the end of the year to avoid the scams that prompted the Mexican government to issue warnings.

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Reporting by Kylie Madry; Editing by David Alire Garcia, Robert Birsel

Our standards: The Thomson Reuters Trust Principles.

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