Four reasons why LatAm Remarketing is growing fast
At a compound annual growth rate of 3.4% between now and 2022, the used-vehicle market in Latin America is expected to reach 22.4 million units in five years' time. New research by Frost & Sullivan now zooms in on four reasons in which the remarketing industry in Latin America is growing so rapidly:
→ Collaborations between OEMs and franchised dealerships to resolve lack of financing, improve brand image, and increase new unit sales (by offering buybacks as partial payment).
→ Partnerships between online disruptors and OEMs, dealers and financial institutions, creating shared value through analysis of data – for example on user preferences, and reselling patterns.
→ Efforts by OEMs to promote used hybrids and electrics via certified pre-owned programmes, designed to combat battery lie anxiety.
→ Mainly in Mexico, Brazil and Argentina: deployment of new apps that allow independent dealers and individuals to get in on the action.
According to Frost & Sullivan, these four reasons help explain why Latin America is on the brink of a great transformation. Its report points out a few disruptors that may have a major influence in the change:
* KAVAK: offers end-to-end buying and selling of second-hand vehicles in Mexico.
* InstaCarro.com: promises to sell any used vehicle in an hour and a half or less to any of more than 1,500 dealers, through an online auction.
* Localiza: has a Remarketing division that uses apps, offers smart financing options and provides insurance and regular maintenance services.
Image: public domain
| 10/08/2017 | Frank Jacobs