A New Tool for the Used-Vehicle MarketBy Alejandro Enríquez | Thu, 08/27/2020 - 13:16
AMDA, the Mexican Insurance Institutions Association (AMIS) and the Experimental and Road Safety Center (CESVI), developed a new tool that allows potential buyers and sellers to validate used-vehicle information to prevent fraudulent practices. "The platform we are launching with AMIS and CESVI is a tool for automotive dealerships to access first-hand information regarding used vehicles while having a starting point to calculate their market value," said Guillermo Rosales, Director General of AMDA, during an interview with Radio Fórmula.
The platform will be focused on both the heavy and light-vehicle segments. At first, it will be available only to AMDA members which include more than 2,500 dealerships in the country. The tool will provide a market value reference for the vehicle, which for heavy vehicles is something completely new. AMIS will also provide information regarding robbery reports, incidents, total losses and insurance terms.
"For buyers and sellers of used vehicles, it is important to know that the vehicle is not connected to any illegal activity. This is part of our strategy to digitalize and democratize information related to insured vehicles, such as the Record of Circulating Insured Vehicles (REVECA) in which we are already implementing blockchain technology. This tool will be also enabled through our partnership with AMDA," said Recaredo Arias, Director General of AMIS and President of the Global Federation of Insurance Associations (GFIA).
The vehicle ID system in Mexico was developed by CESVI back in 2000. The system includes vehicle ID numbers (VIN), which have been operating according to Mexican regulations and include seven characteristics of the vehicle: brand, model, year, engine, assembly plant, country of origin and safety systems. The platform will include this, as well as additional information provided by CESVI via its VINPLUS system, coupled with AMIS’ information.
"Our goal is to unify all the information related to a vehicle through technical records, homologated IDs, market value through a depreciation algorithm, AMIS data, OEM data and information from all other players involved. This will be the main automotive consultation tool in the country," said Ángel Martínez, Director General of CESVI México.
According to Rosales, between January and July, new-vehicle sales dropped 32 percent, while the used-vehicle market measured by granted financing, dropped only 8 percent. By the end of 2020, new-vehicles sales are expected to decrease by 27 percent, while used vehicles will close positively at the same levels of 2019. “The used-vehicle segment is increasingly gaining importance, particularly in this moment of economic crisis when usually new-vehicle sales decline while used vehicle sales increase,” said Rosales.