Decline in the second-hand vehicle market

The Turkish Statistical Institute (TUIK) has announced the motor land vehicle statistics for October. According to the data, the number of automobiles registered to traffic in October increased by 72.3 percent compared to the same month last year, and the total number of vehicles increased by 80.4 percent. In the second-hand market, however, there was a 10.3 percent decline in automobiles and a 5.2 percent decline in total sales.

Making evaluations on the subject, Aydın Erkoç, Chairman of the Motor Vehicle Dealers Federation (MASFED), the umbrella organization for the second-hand market, stated that there is a serious decline in the second-hand market.

Erkoç stated, "In the second-hand vehicle market, with a 10.3 percent decline in automobiles and a 5.2 percent decline in total sales in October, the second most serious decline of the year on a monthly basis was experienced since June. Second-hand automobiles reached their lowest level on a monthly basis this year with 449 thousand 265 units, and the total number of vehicles reached its lowest level since February with 723 thousand 1 units."

Discussing the reasons for the decline in sales, Erkoç spoke as follows:

"In previous years, there would be activity in the market during these periods because new vehicle dealerships would run vehicle campaigns. However, we are currently observing stagnation in both the new and second-hand markets. The main reasons for this are high interest rates, low maturity numbers, and the difficulties citizens face in accessing financing..."

Emphasizing that the regulations made by the Ministry of Trade to prevent exorbitant price increases in the second-hand market have also found a response in the sector, that the bubble in prices has disappeared, and that there is no problem with availability as those who bought vehicles for investment purposes and held onto them are now disposing of their vehicles, Erkoç said, "After the regulations were implemented, exorbitant price increases were prevented, and there is a 15 percent decline in prices. Vehicle prices have reached their real market value, and balance has been achieved in the market. We do not think there will be a further decline in prices."

Erkoç stated that for the market to revive, the difficulties citizens face when using bank loans must be eliminated.

"SCT base update is positive but will not lead to a significant change in prices"

Pointing out that the market share of electric vehicles is increasing, Erkoç noted that while there was an expectation of a price drop with the SCT base change, they do not expect a significant change.

Referring to the figures announced by TUIK, Erkoç said, "While gasoline vehicles still made up the largest portion of automobiles entering traffic in October with 47 thousand 946 units, the share of gasoline vehicles in the total, which was 72.8 percent in October last year, fell to 63.5 percent in the same month this year. The share of diesel vehicles, which increased from 6 thousand 650 units to 10 thousand 704 units as of October, also fell from 15.2 percent to 14.2 percent. In contrast, for hybrid vehicles, the number increased from 3 thousand 669 units to 7 thousand 400 units compared to October, the share increased from 8.4 percent to 9.8 percent, and for electric vehicles, the number increased from 963 units to 8 thousand 340 units and the share increased from 2.2 percent to 11 percent."

Emphasizing that there has been a serious increase in the sales of electric vehicles in the last year and that the widespread use of electric vehicles is also important for the environment, Erkoç said, "The base update made in the SCT is a positive step; however, it will not show the expected effect. We know that some brands are currently updating their prices, but it is reported that there will be a small decrease in some and an increase in others; therefore, it will not lead to a significant change."

News Source: 12punto