In the analysis of the new and second-hand vehicle market prepared by Otorapor Auto Expertise officials, it was emphasized that the second-hand vehicle market is completely indexed to the position of new vehicle prices and stated that the prices will gain upward momentum again this year.
Second-hand vehicle prices, which have continued to rise continuously in the last two years in Turkiye, have entered a downward trend after the recent stagnation. Industry representatives pointed out that there has been no movement in the second-hand market, especially since October and November 2023.
PRICES HAD OPENED THE DOOR TO INVESTMENTS
While the supply shortage in new cars in Turkiye disrupted the price balance, savings shifted to automotive, and automotive turned into an investment/unregistered trade area. Legal regulations and credit restrictions for the second-hand market subsequently opened the door to a decrease in prices, and the citizens were most pleased with this situation. The determined stance of the authorities, who noted that buying and selling vehicles is no longer seen as an opportunity and that both the second-hand and new vehicle markets will cease to be profitable, was the determining factor of this process.
EFFECT OF CREDIT PRESSURE AND LACK OF SALES
The expectation for the current year is that prices will gain upward momentum again. Predictions are that the second-hand vehicle market will remain stable until the local elections and then rise again.
Even though prices are moving downwards, cars cannot find buyers easily. Problems such as the high price range in the new vehicle market and the inability to get a loan are a major handicap for a new vehicle. The negative trend in new vehicles may indirectly open the door to second-hand demand.
CAMPAIGNS WILL BE ACTIVE
On the other hand, corporate companies, in particular, are trying to offer many advantageous campaigns in the second-hand vehicle market, where prices decrease by an average of 20% on a brand-model basis and nearly 30% in some models. No additional decrease is expected in second-hand prices. The contraction of the new vehicle market creates a critical threshold for the second-hand market.
MAJOR DECLINE IS NOT EXPECTED IN SECOND HAND VEHICLES
Otorapor Auto Expertise officials reminded that the campaigns on new vehicle prices are closely followed by citizens and pointed out the following: “The second-hand market is completely indexed to the position of new vehicle prices. Although a major decline is not expected in second hand goods, a horizontal trend can be expected in the current year. Just as there is a price increase in new vehicles, especially in the spring months, we may encounter such a situation in second-hand vehicles as well.”
Source: Sabah / Prepared by Irem Yildiz