Around 40 percent of the sales of used cars in Mexico are in the hands of "lottery sellers" and 20 percent in automotive dealerships, according to data from Fernando Navarrete.
In some formal dealerships, such as in the case of a company that acquired a vehicle with a theft report from a Nissan dealership in Cuautitlán, State of Mexico, risks have arisen for buyers. Miguel Ángel Hernández, a lawyer for the company Arquitectonic, pointed out that car dealerships work with 'coyotes' operating within their facilities, selling vehicles with legal issues.
Arquitectonic purchased a Urvan 15 from the Nissan dealership, but upon attempting to complete the paperwork, they discovered that the van was registered as stolen. After facing obstacles and evasions from the dealership, they filed a formal complaint with the relevant authorities.
The informality in the sale of used cars has even penetrated automotive dealerships, leaving buyers in a vulnerable situation. Guillermo Rosales, president of the Mexican Association of Automotive Distributors (AMDA), mentioned that informality facilitates the sale of vehicles with legal issues, such as stolen ones and those with false documentation.
The presence of 'coyotes' in the automotive dealerships affects both companies and customers, generating disloyalty and risks in transactions. Eric Ramírez, Regional Director for Latin America at Urban Science, commented that informality and associated risks have limited the growth of the used car market in Mexico, despite its great potential.
Currently, in Mexico, for every new vehicle, there is one used vehicle, while in the United States, the ratio is 1 to 10. Despite having around 6 million used cars in the market, half of these sales occur from buyer to buyer, reflecting the challenges and informality present in this sector.
