“With these new openings, the startup, which already operates in Argentina, Brazil and Mexico -the three main markets in the region- seeks to expand its innovative model of buying and selling used carsguaranteeing the best customer experience by providing security and transparency throughout the process,” the company said in a statement.
Jaime Macayawho until now served as CEO in Argentina, and will take on the role of CEO of Spanish-speaking South America, leading development in Chile, Colombia, Peru and Argentina, spoke with Ambit regarding expansion plans.
“Today in Latin America, 90% of used car transactions are between individuals. In general, it is usually a very stressful moment, with various risks and the mistrust that involves carrying out transactions of high economic value with strangers. That is why it is an enormous opportunity for us to offer a completely innovative experience that, on the one hand, eliminates the mechanical and documentary fraud that usually occurs in this type of operation, and also provides financing, mechanical guarantees and post-sale services that are unique in the market”, affirmed Macaya.
He explained that with this investment of 120 million dollars in Chile, Colombia and Peru to add these markets to Argentina, Brazil and Mexico, the company’s operation covers 80% of the region. If Turkey is added – for that landing it will invest another 60 million dollars – the total size is equivalent to the United States market. “It’s a big bet,” he said.
Kavak works like this: it buys used cars from individuals, reconditions them and sells them. For both buyers and sellers, everything that is related to procedures is simplified, and also the barrier of ignorance in mechanics is jumped, which can make the difference between a good and a bad purchase of a used car. In his portfolio there are about 2,500 units.
“97% of people do not know or want to know about mechanics. We all want a car that takes us and brings us without problem. Kavak wants to represent that confidence that you don’t have to bring someone who knows to buy,” said Macaya.
The dollar and the used car market
Asked about the current economic situation in the country, Macaya said that “everyone who does business in Argentina has to understand that inflation and the exchange rate are a reality.” These days of high tension in the financial system, the shock with the blue dollar caused a brake in the market, which entered wait and see mode.
“A car is a savings asset. It follows the dollar quite closely. So many people choose to ‘deposit their pesos’ in a car”, considered the Kavak executive, and recalled that the company offers the option of paying in dollars for the cars it buys to resell.
But in addition, many individuals are taking advantage of the dollars they had stored to take advantage of the jump in the exchange rate and buy cars. “The dollar plays you sometimes in favor and others against. I think there will be a higher demand, that when it settles, it will surely stop. We all speculate on the perfect moment,” he said.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
