The used car market revives towards the New Year

The president of the Federation of Motor Vehicle Dealers (MASFED), Aydın Erkoç, stated that the second-hand vehicle market had a better year this year compared to new vehicles, saying: “The falls in the period October- November gave way to strong demand around the New Year, and there was a visible trend toward second-hand vehicles. The increase has been registered”. saying.

Erkoç evaluated the performance of the automobile industry this year.

According to data from the Turkish Statistical Institute (TUIK), car sales in the second-hand vehicle market increased by 4.2 percent in the January-November period compared to the same period of the previous year, and Total vehicle sales were 8,457,722 with an increase of 6.9 percent. Erkoç reported that sales decreased by 0.8 percent in minibuses and 0.3 percent in buses, compared to periods of 11 months and said they were up 5.1 percent.

Erkoç has indicated that after the high rate increases registered in the second quarter of the year in the second-hand market, there was a contraction after July 7 that registered a decrease.

HOW WAS 2022?

“The used car market had a relatively better year in 2022 compared to new cars.” Erkoç said that although market growth remained low for the 11 months of the year, it started to pick up towards the beginning of the year.

Pointing out that there was a visible movement in the used car market in December, Erkoç said:

“In the last days of 2022, there was a certain revival in the used car market. This was influenced by the fact that the reduction of the SCT tax on new vehicles did not generate the expected lower price and the continuous shortage of supply. Especially the declines in October and November gave way to intense demand towards the beginning of the year, and an increase in the trend towards second-hand vehicles was noted.”

EXPECTED REDUCTION OF SCT AFFECTS SALES

Emphasizing that the difficulties in accessing financing due to the high interest rates of the loans and the short terms negatively impacted the used vehicle market, Erkoç explained that the tendency to wait, caused by the expectation of reduction of SCT in vehicles new, slowed sales, especially in the second half of the year.

Expressing his expectation that second-hand prices will continue to rise and the market will continue to contract unless problems with new vehicles are resolved, Erkoç added that more permanent solutions are needed, such as lowering bank interest rates and increasing the number of deadlines to reactivate the sector. (AA)