Kavak uses technology to revolutionize the used car market

The company generated an artificial intelligence algorithm fed by all the public information on the pre-owned car market, to create a database capable of predicting market behavior and establishing a fair price at the time of buying and selling pre-owned cars.

“If this was that easy, anyone would have done it. The vast majority of customers have an excellent buying experience with Kavak and recommend it to others.

“We buy the cars directly, to later enter them through a reconditioning process and a series of tests, mechanical and legal validations, where things can jump, and that is where we focus on bringing the car to an optimal state for sale”, explained Federico Ranero, Director of Operations of Kavak, in an interview.


Then, around 20,000 pesos are invested in the reconditioning of each car and up to 50,000 pesos in higher value vehicles to make them ready for sale; For the supply of auto parts, the company made alliances directly with some manufacturers to avoid supply problems.

“We diagnose very complex mechanical transmission, suspension or electrical issues, and our model predicts the probability to leave it in adequate condition. ready for sale”, added Ranero.


During 2020 and 2021, the company experienced an exponential demand for which they had to redesign their technology and equipment processes from scratch, which is why some clients experienced delays in their purchase-sale processes.

Alejandro Guerra, general director of Kavak in Mexico, said that as they record more transactions and capture more data, they become better at forecasting and preventing what is going to happen in the market, in order to implement increasingly efficient solutions.

The company’s algorithm even evaluates users’ ability to pay, so they can build specific installment payment plans for each customer, thus facilitating access to a used car.

Kavak offers a period of 7 days or 300 kilometers when someone buys a vehicle where they can ask for their money back or change cars without any restrictions.

The car warranty is 3 months, but it can be extended to 1 year. Ranero commented that more and more people are turning to see the used car market because there are already more companies that offer solutions to guarantee a safe purchase.


In five years, the company has more than 32 logistics centers around the Mexican Republic and 5,500 employees in the country, of which 25% are dedicated to customer experience.

The also first Mexican unicorn has carried out in Mexico more than 120 thousand transactions between purchases, sales and cars transacted in installments and has around 1% of the captured market, in addition to having an inventory of 15 thousand multi-brand cars ready for sale.

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