Pre-Owned Vehicle Seller Odetta OpensBy Alfonso Núñez | Thu, 11/25/2021 - 17:00
Odetta, the Mexican startup to purchase and sell previously owned vehicles, has started operating in Mexico City. The platform enters a market with high demand as the continued semiconductor shortage keeps lowering the supply of vehicles for drivers worldwide.
Estimates have seen the prices of used vehicles increase between 10 and 20 percent as a result of the microchip shortage. But despite advances, nine out of 10 clients prefer to sell and buy cars informally, despite the high levels of risk in doing so. Just this week an informal vehicle purchase resulted in the death of a young man.
“People decide to stay in the informal market because they can receive a higher price when reselling their vehicle. What the seller wants is to receive the highest possible price for his or her car, and the buyer looks for a good car but at the lowest price possible,” said Daniel Esponda, Co-founder, Odetta.
Although the auto market in Mexico is increasingly reliant on startups for the sale and purchase of used vehicles, evidenced by the growth of startup Kavak, Odetta wishes to increase that dependency by driving down the cost of selling a used vehicle in the formal market.
Like other platforms for used-car vehicle sales, Odetta’s low prices are possible through charging commissions but Esponda guarantees that they are about 5 percent lower than those of other platforms, in which commissions make up about 20-25 percent of the sale. This allows sellers to earn 11 percent more and shoppers to save 5-7 percent than in another platform.
Odetta is a fully digital platform that does not have warehouses or reconditioning centers. Instead it has alliances with car repair shops, banks and insurers. Interested sellers can fill out digital form with general data and information on the vehicle. They will then be contacted by an adviser who will send a mechanic to inspect the car for free. Each car undergoes an AI intensive study, through which an appropriate price is assigned. Online buyers can solicit different credit options as a result of Odetta’s partnering with the Brazilian fintech company Creditas and Credito Real. They can also request a test drive.
Once the purchase is made, sellers receive their payment through an exclusive digital space called Boveda Odetta. All certified cars receive a 3-year guarantee and the option of returning the vehicle for seven days or before reaching 80,000 kilometers, greatly increasing the possibility of a sale.
Odetta protects sellers’ privacy by not exposing their personal information but confirming the seller’s ownership through an extensive verification process. The company provides an anti-fraud guarantee that protects sellers and buyers by eliminating any illegal vehicles from the equation.
“We believe that the buying and selling of used cars in Mexico should change and we are generating that change in the automotive industry. In Odetta, we are taking a step forward toward the transformation of the market,” said Esponda.