Mandatory insurance for second-hand vehicles: It will be reflected in prices

The requirement to obtain insurance during notary transactions for the sale of second-hand cars continues to draw reactions from car dealers. Dealers, who are forced to insure even the vehicles waiting in their lots, state that this practice creates additional costs for them and that these expenses will be reflected in second-hand vehicle prices.

INSURANCE COSTS REACH 400 THOUSAND TL

According to the regulation that came into effect in December 2023, it became mandatory to obtain two-month insurance for vehicles during notary transactions in second-hand car sales. Mustafa Kayatuzu, Chairman of the Board of the Auto Dealers Site, stated that while tradespeople with authorization certificates were granted the right to obtain insurance for up to one month, the process still creates significant costs.

Kayatuzu said, “The short-term insurance application, which was stated to come into effect on January 1, 2024, was postponed to February 1. However, during this period, tradespeople who wanted to obtain insurance faced high-cost policies. We are waiting for the Insurance and Private Pension Regulation and Supervision Agency (SEDDK) to implement the decision.”

Emphasizing that car dealers with authorization certificates cannot sell vehicles without obtaining insurance, Kayatuzu added, “Assuming a dealership has 20 vehicles on hand, if each is insured for an average of 20,000 TL, a total additional burden of 400,000 TL is created. This cost will be directly reflected in second-hand vehicle prices.”

TRADESPEOPLE: ''WE CANNOT SELL WITHOUT INSURANCE''

Selim Kalebaşı, a 35-year veteran in the second-hand car trade, also stated that the insurance requirement is straining them, saying, “We are forced to pay 15,000-20,000 TL per vehicle. Because of this regulation, our sales have come to a standstill. The issue needs to be resolved urgently.”

Dealer Harun Göktaş expressed, “An unnecessary burden has been placed on tradespeople with authorization certificates. The market is already stagnant, and having to insure every vehicle is financially difficult for us.”

''VEHICLE PRICES WILL INCREASE''

Car dealer Hasan Zengin also noted that the insurance requirement directly affects prices. “Initially, it was stated that insurance would be mandatory for one year. As a result of our objections, this period was reduced to two months. However, it is still mandatory to obtain insurance for every vehicle. An additional cost of 15,000-20,000 TL on average is created. For commercial vehicles, this figure starts at 40,000 TL and goes up to 100,000 TL. We are forced to reflect these costs in the prices. Otherwise, we cannot do business,” he said.

News Source: 12punto