Argentina’s online marketplace MercadoLibre and Brazilian financial services provider Creditas are forming a partnership to allow MercadoLibre users to apply for used car loans in Mexico, the companies said on Thursday. MercadoLibre, the ubiquitous Amazon rival in Latin America, has partnered with Creditas to attract customers in countries with low credit penetration, Jaime Ugalde, the head of MercadoLibre’s auto business in Mexico, told Reuters. Creditas country manager Gabriela Rolon said used cars are being recruited to join the platform, and the two companies hope to expand their used car offerings across Mexico, starting from the capital city of Mexico City.

“It’s also great for sellers,” said Rolon, who said the deal was easy, that potential buyers will be able to buy a car knowing the exact amount of their down payment has been approved.

In Mexico, demand for used cars has risen steadily as the COVID-19 pandemic and Russia’s invasion of Ukraine exacerbated supply chain disruptions, according to industry experts.

In Mexico, demand for used cars has risen steadily as the COVID-19 pandemic and Russia’s invasion of Ukraine exacerbated supply chain disruptions, according to industry experts.

In the first half of this year, MercadoLibre doubled its searches for cars less than 25,000 miles (40,234 kilometers) old and less than five years old, according to company data.

“I think it might be a good option for people who are looking for their first car and don’t have any credit history, or for people who are looking for a used car, because it’s the They can afford it.” .

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So far, MercadoLibre’s retail platform has primarily been used as an online classified ad for cars, with users selling cars to other users without transacting through the site, Ugalde said.

Ugalde added that MercadoLibre aims to verify all its users by the end of the year to avoid the scam that led to the government’s warning.