The sale of used cars in Mexico is affected by fraud and irregularities, which has even involved formal automotive agencies. Many buyers face complicated situations when acquiring vehicles with legal issues, mechanical failures, debts, and even the sale of stolen cars. A company experienced this when purchasing an SUV at a Nissan agency in Cuautitlán, State of Mexico, only to discover that the vehicle had a report of theft.
"Miguel Ángel Hernández, lawyer for the company Arquitectonic, mentioned that agencies work with coyotes who are not direct employees but operate on the premises as such. Arquitectonic purchased a Urvan 15 at the Nissan agency, and when trying to process the subsequent paperwork, they discovered that the vehicle was registered as stolen," he explained.
In Mexico, the used car market is large, with around 6 million vehicles, half of which are sold from buyer to buyer. However, informality and the presence of 'Coyotes' have significantly weakened this market, making it easier to commit fraud and carry out irregular operations. The 'Coyotes' are intermediaries that undermine transparency and security in the buying-selling transactions of used and semi-new cars.
Informality and legal gaps have limited the growth of the semi-new car market in Mexico, preventing it from reaching its maximum potential. It is crucial to establish a reliable public registry of semi-new units and strengthen regulation in the sector to prevent fraud. In attempting to resolve the issue with the agency, the affected company encountered obstacles and evasions, leading them to file a formal complaint.
The current situation has left buyers in a vulnerable position, as informality has permeated automotive agencies. Guillermo Rosales, president of the Mexican Association of Automotive Distributors (AMDA), pointed out that informality fosters the sale of vehicles with legal issues, from omitted taxes to the marketing of stolen cars with fake documents.
The lack of transparency and regulation in the used car market in Mexico has created an environment conducive to fraud and the presence of 'Coyotes' in transactions. It is essential to establish measures that ensure integrity and security in the purchases of semi-new vehicles to protect buyers and combat the informality that severely harms this sector.
