Waiting for a discount after fixing the tax base on the car, the rise arrived
After the increase in the tax base limit of the excise tax for automobiles last month, although a limited reduction in the prices of new vehicles was expected, on the contrary, there were further increases.
After the new tax regulation of the SCT, published in the Official Gazette on November 25, 5-16 percent for new vehicles; On the other hand, a limited discount in the range of 5 to 10 percent for second-hand vehicles was expected.
In statements to Sozcu.com.tr, the representatives of the sector explained that those who want to buy new vehicles after the SCT created some activity in the market because they want to sell their existing vehicles, and that generates new increases in the prices of new vehicles. .
As a result, new vehicle prices, which are expected to decline by 5 to 16 percent, increased by roughly 1.8 to 6 percent in December.
Since the beginning of the year, this rate of increase has ranged from 23 to 80 percent, depending on make and model, while the annual rate of increase for some vehicles has exceeded 100 percent.
INCREASE OF 1-2 POINTS IN SECOND HAND VEHICLES
It was indicated that after the regulation of the tax base in the SCT, there was a slight reduction in second-hand prices, and when sales increased after the activity in the market, prices increased again, although in a limited way. .
According to information provided by an online market administrator to sozcu.com.tr, there was a 5 percent decrease in used vehicle advertising prices after the SCT regulation. However, with the month of December prices have risen 1-2 points in new entry announcements.
On the other hand, according to the data collected from the Indicata online second-hand market report, it is observed that retail prices increased by 1.45 percent in November from the previous month.
These increases were determined by examining price changes for 2,543 variants of the 258 models from the top 32 brands in the pre-owned market and 123,620 listings in the 2010-2021 model years.
THE EXPECTATION OF ‘SHORT EFFECT’ HAS BEEN FULFILLED
The tax base arrangement, which was scheduled to be announced on December 1, was put into practice through its publication in the Official Gazette on November 24.
Accordingly, the tax base threshold for the 45 percent SCT for automobiles was increased from 120,000 lira to 184,000 lira, while the tax base threshold for the 50 percent SCT was increased from 150,000 lira to 220,000 lire.
While the baseline for the 60 percent SCT rate increased from 175,000 lira to 250,000 lira, the baseline for the 70 percent SCT rate was 200,000 lira to 280,000 lira.
However, in addition to the expectation that the planned price reductions for new and used vehicles will remain limited, another concern was that even this inadequate regulation would be short-lived due to inflation and rising costs. of production.
The representatives of the sector emphasize that these worries seem to be valid with the last evolution of the prices.