Severely damaged vehicles to be removed from traffic: Recycling incentive for old vehicles

The legislative proposal submitted by MHP deputies İsmail Özdemir and Halil Öztürk includes regulations for SCT-free vehicle sales for vehicles older than 25 years, SCT and VAT exemptions for commercial drivers, and the removal of severely damaged vehicles from traffic.

This proposal aims to bring old vehicles into recycling and encourage the use of environmentally friendly, safe, domestically produced vehicles in their place.

WHICH VEHICLES ARE COVERED BY THE SCT EXEMPTION?

Hayrettin Ertemel, President of the Istanbul Motor Vehicle Dealers Association (İMAS), shared the following information regarding the scope of the proposal:

Vehicles from the year 2000 and older will be exempt from SCT when purchasing zero-kilometer domestically produced vehicles, provided they are scrapped.

SCT and VAT exemptions will be provided for commercial drivers.

Severely damaged vehicles will be removed from traffic and sent for recycling.

HOW WILL THE SCT REDUCTION AFFECT VEHICLE PRICES?

Stating that the reductions will vary depending on the vehicle due to the tiered SCT system, experts foresee a price drop as follows:

There could be a reduction of approximately 180,000-200,000 TL on a 1 million TL car.

However, differences in engine displacement and equipment levels will determine the rate of the reduction.

For this reason, it is worth noting that the details have not yet been finalized.

REFLECTION ON SECOND-HAND VEHICLE PRICES

The effect of the regulation on the second-hand vehicle market is a subject of curiosity. If the legislative proposal is enacted:

With the increase in demand for domestically produced vehicles, there may be a slight decrease in second-hand vehicle prices.

However, this regulation, which will take place on the condition of a scrap return, may not create a major price change in the second-hand market.

The expansion of incentive programs by brands to increase sales could lead to a more significant drop in second-hand vehicle prices.

WHY IS AN SCT REGULATION NEEDED?

Rising automobile prices in recent years have caused the vehicle fleet in Turkey to age.

57 percent of vehicles in traffic are 10 years old or older.

Bringing old vehicles into recycling will make significant contributions to the environment and traffic safety.

More environmentally friendly and safe vehicles will increase Turkey's domestic production rate.

WILL THE LEGISLATIVE PROPOSAL BE ENACTED?

SCT is one of the important revenue items of the Turkish economy. However, sectoral needs such as increasing the declining domestic production rate and removing old vehicles from traffic demonstrate the necessity of this regulation.

Detailed evaluations will be made in Parliament for this regulation to be enacted. İMAS President Hayrettin Ertemel stated, "As a sector, we are ready to provide support for the law to be shaped correctly."