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The popularity of used cars in Brazil is growing significantly as people are finding them to be a cost-effective and reliable source of transportation.
While cars manufactured in Brazil by local companies do have a good reputation for reliability, they tend to be more expensive than imported used cars.
Used cars are usually imported from foreign countries such as Japan and the United States, with Japan being the most popular choice and a primary source of used cars in Brazil.
When it comes to buying used cars in Brazil, there are a number of sources to choose from. Local dealers are usually the most familiar option and offer a wide variety of cars from different manufacturers, mostly from the Japanese market.
Normally, cars from Japan are in better condition, have lower mileage, and are more reliable. There are also a large number of non-dealer or independent used car sales outlets where people can find a great selection of cars at competitive prices.
Furthermore, there are online portals for used cars in Brazil that facilitate the buying and selling process and provide access to cars from around the globe.
When it comes to buying second-hand cars in Brazil, the process is quite straightforward and involves the buyer making an offer, followed by the seller making a counteroffer if required.
It is important to do plenty of research on the desired car model before making a purchase and conducting a test drive for assurance. Additionally, checking the car’s history is highly recommended to make sure it does not have any problems.
The Brazil Used Car market accounted for $XX Billion in 2023 and is anticipated to reach $XX Billion by 2030, registering a CAGR of XX% from 2024 to 2030.
Insta Caro is an online marketplace that links Brazilian dealers and used car sellers. Notably, J Ventures, FJ Labs, and Rise Capital—three American companies—co-led the investment. Big Sur and All Iron Ventures of Spain were among the other investors in the deal.
The global COVID-19 pandemic has resulted in a rise in the number of people purchasing and selling goods online, including automobiles. With the help of its new funding, Insta Caro intends to take advantage of the change and “aggressively” broaden its market share in Brazil.
After hearing from users that they would be interested in purchasing a car straight through its platform as well, Insta Caro plans to develop into a “full-service” automobile trading platform in the future.
The process appears simple under its current model. When a client sells their vehicle through Insta Caro, the business visits the home to examine the vehicle and takes over 150 photos before holding an auction through its nationwide network of more than 4,000 dealers in Brazil. Consumers get a bid for their car within 24 hours, and Insta Caro takes care of all the paperwork and pays the customer the same day.
Because there is disagreement over the actual value of a used car, the auction is essential to getting a good price. Additionally, the startup intends to increase the effectiveness of its digital auction process and “improve the coverage” of its home inspection model with the help of the additional funding.
The business had established inspection points in collaboration with large supermarket chains before the pandemic. However, as soon as the pandemic hit, it started examining cars at the sellers’ houses, which has helped the business expand and operate more quickly.
In addition to figuring out how to adapt the model to Brazilian consumers, the team or teams building a digital car dealership in Brazil will have their hands full managing the day-to-day operational challenges of purchasing and selling a large number of cars. The team at Insta Caro is equipped to meet the challenges that lie ahead.
