Second-hand opportunism in the motorcycle market

The regulation regarding the sale of second-hand vehicles above the zero list price entered into force on July 15. However, on some websites motorcycles are sold, like second-hand cars, above zero price. It should be noted that a motorcycle with a zero price of 191 thousand liras, and a second-hand sale price of 240 thousand liras.

Remzi Öztürk, General Coordinator of the Motorcycle Industry Association (MOTED), who stated that there were many complaints on this issue, said: “While 144 thousand motorcycles were sold in the first 5 months of last year, 336 thousand motorcycles were sold this year. We estimate that it will reach 650-700 thousand by the end of this year. There is a high second-hand price brought by this demand for the product,” he said.

Setting the sale price of used vehicles above the zero list price was prohibited until January 1, 2024, with legal regulation. This decision, which is valid in the motorcycle market, entered into force on July 15. However, on some websites it was seen that second-hand motorcycles were sold above zero price.

While the motorcycle costs 191 thousand lira on the website of the Turkish dealer company, the second hand of the same model sells for an average of 240 thousand lira on the websites. According to motorcycle dealers, the absence of new motorcycles causes second-hand prices to rise. Industry representatives say that lowering second-hand prices is possible with easy access to new motorcycles on the market.

PRICES RISE BY 50 PERCENT

Remzi Öztürk, General Coordinator of the Motorcycle Industry Association (MOTED), stated that second-hand motorcycle prices are high due to the lack of new motorcycles on the market, saying:

– In 2023, the market grew by 144.3 percent. This is a significant growth rate. While in the first 5 months of last year 144 thousand engines were sold, this year 336 thousand motorcycles were sold. These are only the figures for the first 5 months. We estimate that it will reach 650-700 thousand by the end of this year. Of course, there is an increase in the second-hand price caused by this demand for the product. These complaints come from everywhere. However, it is out of the question for our MOTED members to sell anything second hand above factory price. This is mainly due to the fact that the motorcycle purchased from the dealer is sold by the customer himself at a high price. The important thing here is this. Since the availability of this product is low, that is, the demand is high, it causes an increase in the second-hand price above zero price.

ALL COMPANIES MUST FOLLOW

The important reason for the increase in prices in 2023 is the incredible increase in the exchange rate. Now, if a distributor bought the product for a unit price of 100 lira, he already buys the next product at a higher price due to the exchange rate. Some products may seem higher than the factory price, but the price of the next product they will buy is higher. Therefore, as long as the price of the product to be purchased here is high, some authorized dealers may sell the product they will sell at high prices. Here, our government says that it will not be second-hand above zero price to avoid this, it is true. According to MOTED’s ethical rules, all companies have to and do comply.

– Compared to last year, prices have increased by 50 percent, almost at least. At such low marks, the prices of products up to 125 CC, which we call the folk type, which rises to 200,000 lira as it goes up from 50,000 lira, vary from 50,000 lira to 200,000 lira. We are talking about zero engine prices. The increase in second-hand prices is not a complaint, but we also receive information on products with a price greater than zero. The only condition to avoid it is that this complaint disappears with the increase in the availability of the product, which will start with production here.

DEALERS: IT IS NOT OUR CRIME

Emrah Çizmecioğlu, the operator of the motorcycle dealer, emphasized that the prices of second-hand engines are higher than the price of a new engine, saying:

– Actually, we are very distressed about this issue. Because customers are now afraid to buy products or come here to see the engine. Because they know that we are above zero price. We are not the reason it is high. Buyers and everyone in the market see it as an investment tool, people buy the engines for themselves. Here I wait a month and sell it at this price. Frankly, those of us who do this work are victims because they think they can wait two months and sell them at this price. Let me give an example; That engine costs 300 thousand lira for us at the moment, but it is 280-290 thousand lira on the external list. But since we bought it by barter and the client is now researching the market, the prices are high. So it’s not our fault to buy high and sell high.

SUPPLY-DEMAND QUESTION

– Actually, we buy expensive because the client wants to negotiate with us and determine the price himself. The solution is for more goods to enter the country, for currencies to fall and for the consumer to be aware. The reason for the high price at the dealership is the exchange rate and the scarcity of the products. It has a price, but there is no reason to be high in second hand. Because more second-hand goods are returned. Currently, the seller does not have any products. The second-hand man says, ‘This price has gone up, I need to sell it right away,’ and he sells it. He can’t replace the products, the price goes up again. So think of it as a vicious cycle. It is a matter of supply and demand.

UP TO 2 MILLION TL

– Currently there is more demand for second-hand; but the prices are high. In other words, the absence of a new engine raises the second hand. We usually mount large DC motors. The price of an average engine starts from 400-500 thousand lira. It goes up to 1.5-2 million. Between 600 CC and 1,800 CC. In other words, I think it would be appropriate for us to apply the laws made for motorcycles as well. Because we merchants are finished. Our name is coming out. Therefore, we would be happy if a law was passed for us. (DHA)