STORY INLINE POST
Q: What role does OLX Autos play in the evolution of second-hand vehicle sales in Mexico?
A: OLX Group operates in over 30 countries across the world. OLX Autos operates in 9 countries: Argentina, Chile, Colombia, India, Indonesia, Mexico, the US (under the brand Webuyanycar), Turkey (under the brand letgo Otoplus) and Poland (under the brand 321 Otomoto Klik). In economies like Mexico, cars are sometimes the most valuable asset a family acquires. We seek to bring these families closer to quality products previously inspected and guaranteed by OLX Autos.
We give cars a second chance from an economic and ecological perspective. OLX Autos buys vehicles at its 32 points of purchase. Once purchased, we take the vehicles to our six inspection locations to be fixed and tuned. In this process, we have 240 points on the vehicle that we inspect regarding its physical, mechanical and aesthetic condition and its documentation. Afterward, we offer them for sale at our 11 points of sale, which offer a guarantee of 300km or seven days, no questions asked, in addition to an extended one-year warranty offered through a partner. This is an added value in our service that nobody else provides in the second-hand vehicle market.
Q: What is the outlook for the second-hand vehicle market in Mexico?
A: Mexico sees between 5-6 million second-hand vehicle transactions annually, of which 3.5 million are post-2010 models, which are what we focus on. In the three years that OLX Autos has operated in Mexico, we have made over 50,000 transactions, with a very high satisfaction rate.
We have 11 sales floors for customers to see the cars but our inventory consists of over 1,700 vehicles, so customers go online and choose the best option for them rather than the closest one. Each pre-owned car is unique and our goal is for clients to find the one that is perfect for them.
Q: How does OLX Autos leverage technology across its processes?
A: The company has a technological background. OLX Autos belongs to Grupo Prosus. We are not a pre-owned car dealer or agency. OLX Autos leverages data science to make better buying and selling decisions. Our process is not traditional. We start with lead management to understand our clients and their purchase, sale or financing needs. Depending on the client’s goal, OLX Autos starts an online process. Before the client leaves home, we have already validated the documentation and the physical condition of the car, so the process is agile when the customer arrives at the point of sale.
We have over 360 developers across the world working to improve our platforms and the best is yet to come. We constantly implement new technologies for photos and videos, in addition to our new mobile application. About 3 percent of our customers do not visit our facilities; OLX Autos goes to their house to pick up or deliver the vehicle. These latter clients are early adopters and this percentage will grow with time.
Q: Which payment methods does OLX Autos offer?
A: OLX Autos provides two payment methods to clients: cash and financing. We have an in-house financial company that offers competitive rates, which is an important source of revenue within OLX’s Autos business model. However, we also have alliances with the main banks in Mexico, providing clients with the possibility to choose the option that best suits them.
Q: How has OLX Autos seized the opportunity caused by the shortage of new vehicles and what is the company’s strategy to remain profitable when the landscape changes?
A: We have seen a good influx of customers looking for pre-owned cars that look like new. The quality of the car is crucial. OLX’s vehicles shine and are in good condition due to thanks to our operations centers. We have agreements with body shop companies and each of the cars is in excellent mechanical and aesthetic condition.
OLX Autos makes significant investments in marketing so potential clients know about our business model. We must be careful to maintain a fair negotiation without affecting our volumes and taking care of customer confidence. We depend on the satisfaction of our users to grow reasonably, ensuring the quality of our services.
Q: What does OLX Autos’ footprint in Mexico look like and how is the company working to grow it in the near future?
Q: OLX Autos has 11 purchase showrooms in Mexico City, Guadalajara and Monterrey and aims to have a total of 14 by the end of October 2022. We have purchase showrooms in 16 states and by 1Q23, we will expand to Puebla and Queretaro. The expansion plan is aggressive. We have a solid group behind us and in the next three years, we aim to have between 30 and 45 facilities in the country.
Q: As digitization increases, how will OLX Autos continue to pursue its mission?
A: OLX Autos will continue working to dignify the second life of vehicles. We believe that these cars can meet the needs of thousands of Mexican families. OLX Autos will continue to create an ecosystem that drives the company to an omnichannel world. Our processes enable a better shopping experience for client satisfaction. The model will continue to focus on personalization and convenience, with financing facilities and guarantees.
We want to be digital but not isolated. OLX Autos is implementing a model in which the client is always free to make their digital movements but also with the possibility of having personalized and in-person support.
OLX Autos is part of OLX Group, a global company focused on second-hand vehicle trade for car buyers and sellers. The company leads the used-vehicle markets in Mexico, the US (as We Buy Any Car), Colombia, Chile, Argentina, Indonesia and India. It also operates in Poland under the brand 321 Otomoto Klik, and Turkey as Letgo Otoplus.