Kavak uses technology to revolutionize the used car market
The corporate generated a synthetic intelligence algorithm fed by all the public data on the pre-owned car market, to create a database able to predicting market conduct and establishing a good worth at the time of shopping for and promoting pre-owned vehicles.
“If this was that simple, anybody would have executed it. The overwhelming majority of consumers have a wonderful shopping for expertise with Kavak and advocate it to others.
“We purchase the vehicles straight, to later enter them via a reconditioning course of and a sequence of checks, mechanical and authorized validations, the place issues can soar, and that’s the place we give attention to bringing the car to an optimum state on the market”, defined Federico Ranero, Director of Operations of Kavak, in an interview.
Then, round 20,000 pesos are invested in the reconditioning of every car and up to 50,000 pesos in greater worth autos to make them prepared on the market; For the provide of auto components, the firm made alliances straight with some producers to keep away from provide issues.
“We diagnose very advanced mechanical transmission, suspension or electrical points, and our mannequin predicts the chance to go away it in enough situation. prepared on the market”, added Ranero.
Throughout 2020 and 2021, the firm skilled an exponential demand for which they’d to redesign their technology and gear processes from scratch, which is why some purchasers skilled delays of their purchase-sale processes.
Alejandro Guerra, normal director of Kavak in Mexico, stated that as they file extra transactions and seize extra knowledge, they grow to be higher at forecasting and stopping what goes to occur in the market, so as to implement more and more environment friendly options.
The corporate’s algorithm even evaluates customers’ skill to pay, to allow them to construct particular installment cost plans for every buyer, thus facilitating entry to a used car.
Kavak affords a interval of seven days or 300 kilometers when somebody buys a automobile the place they’ll ask for his or her a reimbursement or change vehicles with none restrictions.
The car guarantee is 3 months, however it may be prolonged to 1 yr. Ranero commented that an increasing number of individuals are turning to see the used car market as a result of there are already extra firms that supply options to assure a secure buy.
In 5 years, the firm has greater than 32 logistics facilities round the Mexican Republic and 5,500 workers in the nation, of which 25% are devoted to buyer expertise.
The additionally first Mexican unicorn has carried out in Mexico greater than 120 thousand transactions between purchases, gross sales and vehicles transacted in installments and has round 1% of the captured market, as well as to having a list of 15 thousand multi-brand vehicles prepared on the market.