Business

Kavak's new rival, Creditas announces buying and selling secondhand cars platform

Creditas Auto started operations through its digital platform and brick-and-mortar spaces

Photo: Sergio Furio, CEO and founder at Creditas/Courtesy
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  • According to Creditas, all used-cars go through inspections that check more than 250 items;
  • For those who want to sell, Creditas will provide support in the inspection and eventual revision.

Buying a car through e-commerce? This is the idea of the fintech unicorn Creditas, which announced on Wednesday the Creditas Auto, a new business unit focused on buying and selling used cars. Rivaling Mexican unicorn Kavak, the solution complements the fintech‘s auto ecosystem, which already has financing and secured lending options.

“Customers were asking us for a complete digital solution that brings together everything they need throughout their relationship with their car. We started working on the project a year ago, and now we are ready to expand our product portfolio into the vehicle ecosystem. We want Creditas Auto to be the first choice when people think of a reliable option related to their cars,” said Sergio Furio, Founder, and CEO of Creditas, in a press statement.

READ ALSO: Brazil-based Creditas raises $255 million and is now valued at $1.75 billion

Creditas Auto started its activities through its digital platform and brick-and-mortar spaces. The main one, located in Barueri (São Paulo’s state countryside), has 30,000 m² and the capacity to recondition 3,000 cars per month, besides offering areas for mechanics, tinkering, painting, and automotive aesthetics, a photo studio, and a showroom for customer service, both physical and virtual.

According to Creditas, all used-cars sold go through inspections that check more than 250 items. Customers also receive a one-year warranty and have up to seven days or 300 kilometers (186.411 miles) driven as a test drive.

READ ALSO: Creditas raises revenues by 24%, but loss weighs 14% more in Q1 compared to 2020’s Q4

In addition to the central office located in Barueri, Creditas Auto has five other customer service points throughout São Paulo. Inspection spaces will be opened in the coming weeks at Santa Cruz and Anália Franco Shopping Malls, BIG Washington Luiz and BIG Pacaembu supermarkets, and at one point in the Berrini region in São Paulo.

The entire stock of the brick-and-mortar space is available on the portal and can be picked up on-site or delivered to the customer’s home. For those who want to buy, the fintech offers different forms of payment, including its own financing with minimum down payment and rates starting at 1.15% per month and an online process.

READ ALSO: Mexican used-car startup Kavak raises $485 million in new funding

The client can also use his auto to make a trade-in and, in this case, Creditas uses its value as a down payment and saves the amount in the financing that is contracted. For those who want to sell, the team provides the necessary support in the inspection and eventual revision.

Shopkeepers who offer or want to offer Creditas auto financing to their customers will also have a new feature, the Creditas Auto Pro. With it, the fintech intends to “give special terms” that include the development of an online car store to help drive sales, priority access to inventory, and incentive programs with rewards. Besides, Creditas Auto customers will have access to the car portfolio of partner retailers, which, according to the fintech, increases the options for buying and selling used cars.

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