BETAM research: Are car prices falling?

sahibinden.com has shared the "Automobile Market Outlook" report prepared by the Bahçeşehir University Center for Economic and Social Research (BETAM).

According to the statement made by the company, the "Automobile Market Outlook" report, prepared by BETAM based on listings on sahibinden.com, has been published. In July, the automobile demand index was 30.9 percent higher compared to June and 5.7 percent higher compared to July of last year.

The "ratio of the number of cars sold to the number of listings for sale," which is monitored as an indicator of vitality in the automobile market, decreased by 4.6 percentage points to 19.5 percent. When the details of this indicator are examined, it is seen that both the number of listings and the number of cars sold have increased, while the "closed listing age," which is used as another measure of vitality in the automobile market and shows how long car listings remain active, increased by 1.8 days compared to the previous month to 25.6 days.

When adjusted for inflation, it is observed that the average real price of automobiles has been falling for 13 months. In July, the real price index decreased by 4.1 percent compared to June, reaching 164.8. The annual growth rate in real prices has also fallen.

The growth rate, which reached 47.9 percent in May 2023, decreased continuously in the following months and fell to -41.4 percent in June of this year.

LIMITED DECREASE IN PRICES

Average automobile prices fell slightly compared to the previous month, with the average automobile price, which was 871 thousand 156 liras in June, becoming 862 thousand 232 liras in July.

The decline in the annual rate of change in automobile prices also continues. Although the average automobile price increased by 0.6 percent in June compared to the previous year, it decreased by 4.6 percent in July.

The automobile demand index, which increased continuously between November 2023 and March 2024, showed a significant decline in April 2024 due to the long holiday break. Although the demand index rose in May, contrary to April, it showed a significant decline in June due to another long holiday break.

In July, however, there was a large-scale increase in the automobile demand index. It was observed that the automobile demand index was 30.9 percent higher compared to the previous month and 5.7 percent higher compared to the same month of the previous year. It appears that the emergence of deferred automobile demand due to the holiday break and the campaigns launched by automobile companies following the European Union's announcement of new mandatory vehicle safety feature restrictions were effective in this rise.

The ratio of the number of cars sold to the number of listings for sale increased by 4.6 percent compared to the previous month to 19.5 percent. When the background of this increase is examined, it is seen that the number of automobile listings for sale increased by 4.6 percent, while the number of cars sold increased by 36.7 percent.

The "closed listing age," another indicator of vitality in the automobile market, lengthened as it did last month. According to July data, the closed listing age increased by 1.8 days compared to the previous month to 25.6 days.

News Source: AA