Second-hand car sales dropped by 20 percent: Here are the latest figures

The excessive rise in foreign exchange rates following the pandemic was felt most acutely in the automobile and housing markets. 

The government's failure in economic management, the emergence of opportunists, and fluctuations in foreign exchange rates had caused second-hand car prices to skyrocket.

Accordingly, prices that had risen significantly in recent years have begun to fall following measures taken by the Ministry of Trade. Citizens, who still find prices high, are not showing much interest in the market.

SALES FELL SHARPLY IN MAY

In Turkey, second-hand car sales declined by 20.62 percent in May 2024. According to TÜİK data, second-hand car sales, which were 741 thousand 828 in May 2023, fell by 20.62 percent to 588 thousand 886 units in the same month this year.

Total sales of all vehicles in the second-hand market also fell from 1 million 104 thousand 572 to 920 thousand 604 during the same period.

In May, 15 thousand 468 minibuses, 4 thousand 259 buses, 142 thousand 796 pickup trucks, 18 thousand 607 trucks, 120 thousand 420 motorcycles, 1 thousand 830 special-purpose vehicles, and 28 thousand 338 tractors were sold.

Aydın Erkoç, Chairman of the Motor Vehicle Dealers Federation, made the following statements regarding the issue:

The loss of performance in the automotive market is becoming more apparent day by day. There are approximately 70 thousand motor vehicle dealers in Turkey. They buy vehicles from individuals and sell them by adding a very modest profit margin.

"PEOPLE HAVE TURNED TO INTEREST RATES"

Because banks have raised interest rates and reduced lending, some people have already turned to interest-bearing accounts. Others, unable to find credit, have made the business of buying second-hand vehicles stagnant.

Approximately 10 million vehicles were being bought and sold annually in Turkey. These vehicle transactions will likely not reach these figures this year, and we think this will continue a bit more in 2025, at least until the 6th month.

"SECOND-HAND MARKET HAS COME TO A STANDSTILL"

The reason for this is the difficulties in accessing credit. This has inevitably stopped and stagnated our automotive market.

If Turkey has two locomotive sectors, one is construction and the other is automotive. The markets most quickly affected are automotive and construction. Currently, the second-hand automotive market has come to a complete standstill.

"THE PERFECT TIME TO BUY A VEHICLE"

Stating that now is the perfect time to buy a vehicle, Erkoç concluded his words as follows:

The reason is that prices are very reasonable due to both the stagnation in the second-hand market and the campaigns for new cars. If our citizens are going to buy a vehicle, they should take advantage of this market stagnation.

We think that vehicle prices will rise after this. The reason is that, as you know, there are several regulations in effect.

"HIGH SCT WILL REFLECT ON SECOND-HAND"

Using this as an excuse, the prices of some vehicles coming from Europe will also rise. That is why we say 'it is the perfect time to buy a vehicle'.