June was sluggish for second-hand cars: Real prices continued to fall

The second-hand car market left June behind with limited price movement and a weak demand outlook. According to the market analysis by arabam.com covering the first half of the year and June data, the average second-hand listing price, which was 913 thousand 190 TL in May, rose to 914 thousand 918 TL in June. However, despite this limited nominal increase, a 0.79 percent decline was recorded on a monthly basis in inflation-adjusted real prices.

The report stated that campaigns on zero-kilometer vehicles suppressed activity in the second-hand market. It was noted that demand for young second-hand vehicles in the 0-5 age range slowed down, and the vitality expected during the holiday and vacation periods remained limited.

arabam.com CEO Önder Oğuzhan stated that a cautious trend was observed in the automotive sector in the first half of the year, pointing out that zero-vehicle campaigns directly affected the second-hand market in June. According to Oğuzhan, while the stagnation continued in the first week of July, the summer months may pass more quietly than expected for the market.

DISCOUNT TREND INCREASED AMONG INDIVIDUAL SELLERS

Campaigns that dropped below list prices for new vehicles directed buyer interest toward dealerships, while also creating price pressure on second-hand sellers. According to the analysis, while corporate sellers were more resistant to price cuts to avoid falling below the cost at which they purchased the vehicles, individual sellers were more willing to lower listing prices to reach cash more quickly.

In June, the rate of price reductions in listings by individual sellers was 17.08 percent higher compared to corporate sellers. This picture showed that price bargaining in the second-hand market became more pronounced, especially in individual listings.

Vehicles under 1 million TL continued to dominate the price distribution of listings. In June, 33 percent of the vehicles listed were in the price band up to 600 thousand TL. While the share of vehicles between 600 thousand 1 TL and 1 million TL was 26 percent, the 1 million 1 TL to 1 million 400 thousand TL range stood at 18 percent. Vehicles between 1 million 400 thousand 1 TL and 1 million 700 thousand TL accounted for 9 percent, and vehicles 1 million 700 thousand TL and above accounted for 13 percent.

In terms of age distribution, the largest group consisted of vehicles in the 10-15 age range with 30.1 percent. The share of vehicles aged 0-5 in the listings fell by 1 point to 24.5 percent.

By brand, the most listed vehicles were Renault, Fiat, Volkswagen, Ford, and Opel. In the model ranking, Clio, Megane, Egea, Astra, and Corolla stood out.

In terms of fuel type, diesel vehicles maintained their first place with a 45.8 percent share, but fell by 1.5 points compared to the previous month. While the share of gasoline vehicles was 30.5 percent, LPG vehicles increased by 1.8 points to 19.7 percent. The share of hybrid vehicles remained at 2.4 percent, and the share of electric vehicles remained at 1.6 percent.