BBVA and Odetta are partnering to offer loans to buy pre-owned vehicles. Demand for these vehicles is increasing amid the shortage of new cars originated by automotive supply chain disruptions.
“The vehicle market is experiencing an unexpected high demand for used vehicles. It is estimated that for each new vehicle sold, six pre-owned cars are commercialized,” said Victor Rojas, Director of Automotive Banking, BBVA Mexico.
New-car sales across the globe (including Mexico) have been impacted not only by the shutdowns of manufacturing facilities during the peak of the mobility restrictions in April and May 2020 but, more importantly, by the drastic supply chain disruptions seen since the end of that year, said Lorena Isla, LATAM Mobility Director, Frost & Sullivan, to MBN.
This situation brings banks an opportunity to increase their loan services. During 2021, BBVA financed 23.8 percent of the total of semi-new car purchases in Mexico and it expects a growth of 25 percent by the end of 2022. The bank is expecting approximately 20,000 loan applications as a result of its partnership with Odetta, which will allow potential buyers to access credit in an easy, digital and safe way. “But above all, it will ensure that the buying and selling processes are safe and without irregularities,” said Rojas.
Giving loans to a higher number of people contributes in boosting the economy of Mexican families and allows them to acquire an asset that sometimes is the most valuable possession that they have, said Daniel Esponda, CEO, Odetta. “Our increased offering of automotive financing options will help our clients sell their cars faster, and buyers who use our platform purchase the lowest-priced certified vehicles in the market with a loan from BBVA, one of the most trusted financial institutions in Mexico,” added Odetta.
BBVA is not the only bank that has seen opportunity in the current scenario. Santander has partnered with Caranty Credit to offer financing for the buying and selling of pre-owned cars. This alliance allows clients to finance 80 percent of the vehicle in a period of 60 months. “Through Caranty Credit we are addressing a real necessity of the buyers and we are providing them a highly competitive alternative,” said Julio Ascorve, Director of Automotive Financing, Santander.