Sharp drop in sales of credit vehicles

Ali Haydar Bozkurt, president of the Association of Mobility and Automobile Dealers (ODMD), recently assessed the impact of banks’ credit policies on vehicle sales.

Bozkurt stated that they support the reduction of domestic consumption in terms of the fight against inflation and the current account deficit, but that they do not want the total automobile market to fall below 700 thousand units, Bozkurt said that it is necessary to maintain balances in the right place when it comes to credit. .

Bozkurt stated that under normal market conditions, 70 percent of individual customers purchase a vehicle on credit, but after credit restrictions, this rate has decreased to approximately 20-25, Bozkurt said: “In addition, customers who use credit can pay a maximum of 250 TL for a vehicle with an average price of 1.5 million TL.” -We see that you can use a loan of 300 thousand lira. “In this sense, it would be useful to see if it is necessary to reduce even more loans,” he said.

INFLATION AND CURRENT ACCOUNT DEFICIT TARGET WILL REDUCE SALES

“Our biggest and most important problem in the period we are going through is inflation. In the fight against inflation, the priority is to find a solution to the current account deficit. Therefore, it is quite understandable that the first intervention that comes to mind is to “reduce domestic consumption,” Bozkurt said, adding that they foresee that this approach will have consequences such as a decrease in the total market volume for the automobile industry.

Bozkurt stated: “Although this situation does not make us happy at first glance, we are aware of how important it is to permanently solve the problem of inflation and achieve economic stability in the medium and long term. For this reason, we must patiently support the economic roadmap.”

‘CORPORATES WILL DOMINATE THE MARKET AFTER THE SERIOUS DECLINE OF THE INDIVIDUAL’

Bozkurt also stated: “The important thing in the coming period in terms of credit will be that especially corporate customers (fleets) can access credit. It is clear that there will be a significant decline in vehicle purchases by individual customers over the next two years. “It is obvious that we will enter a period in which corporate (fleet) customers will dominate the automobile market,” he said.

“The point to keep in mind in this process is that there is a need to ease corporate customers’ access to credit,” Bozkurt said, adding: “Otherwise, if corporate customers cannot buy vehicles, vehicles companies need will not be met and business operations will be disrupted.”