Communiqué affecting thousands of scrap vehicles repealed

The communiqué regulating the practice regarding goods kept in impound warehouses despite the lifting of liens in Turkey has been repealed. The regulation, which was prepared based on the provisional 20th article of the Enforcement and Bankruptcy Law, officially ended with an announcement published in the Official Gazette.

The provisions in question covered goods that were kept in impoundment even though the basis for the lien had been removed as of April 5, 2023.

HUNDREDS OF THOUSANDS OF VEHICLES WAITING IN IMPOUND LOTS

The regulation is of particular interest to vehicles that have been idle in impound parking lots for a long time. According to information obtained, approximately 700,000 vehicles across Turkey have been held in impound lots for various reasons for years. It is stated that a significant portion of these vehicles have lost their economic value and require high-cost repairs to be put back into traffic.

While it is stated that the process for the liquidation of the vehicles has effectively begun, some market experts argued that bringing these vehicles back into the economy could lower prices in the second-hand market. However, it is pointed out that contrary to expectations, there has been an increase rather than a decrease in vehicle prices.

SCRAP PROPOSAL AND EXPECTATION OF NEW REGULATION

On the other hand, the fact that the legislative proposal regarding the scrap vehicle regulation with Special Consumption Tax exemption is being discussed in the Grand National Assembly of Turkey (TBMM) commission has made the process even more critical. With the repeal of the liquidation communiqué, the expectation that a new legislative regulation will be made regarding the notification, sale, and liquidation procedures of goods whose liens have been lifted has gained strength.