For the 13th consecutive month, average second-hand car prices in Turkiye are falling, even as demand surges, according to recent market data.
The decline in second-hand car prices in Turkiye continues unabated, marking the 13th consecutive month of decreasing real prices, even as demand for second-hand vehicles surged in July. According to a report by the Bahçeşehir University Center for Economic and Social Research (BETAM) utilizing data from sahibinden.com, the second-hand car market is experiencing a unique trend where demand is on the rise, but prices are still falling.
Increase in Demand for Second-Hand Cars
Despite the ongoing price decline, the demand for second-hand cars showed significant growth:
- July Demand: The demand index for second-hand cars increased by 30.9% compared to June and by 5.7% compared to July of the previous year.
- Market Activity: The increased demand is a clear indicator of market vitality, yet it has not translated into higher prices.
Decline in Car Prices Continues
The average real price of second-hand cars, adjusted for inflation, has been on a downward trajectory:
- Price Drop: In July, the real price index dropped by 4.1% compared to the previous month.
- Long-Term Trend: Since May 2023, when the price increase rate peaked at 47.9%, the market has seen a steady decline in prices.
Average Car Prices in Turkiye August 2024
The average price of second-hand cars also saw a slight decrease:
- June vs. July: The average price of a second-hand car fell from ₺871,156 in June to ₺862,232 in July.
- 13-Month Trend: This marks the 13th month of continuous decline in average prices, reflecting broader market dynamics.
Market Indicators
Several key indicators reveal the current state of the second-hand car market:
- Sales-to-Listings Ratio: One measure of market activity is the ratio of sold cars to listed cars. In July, this ratio decreased by 4.6 points to 19.5%, indicating a slight slowdown in market transactions.
- Ad Duration: Another indicator is the duration that car ads remain online. In July, the average duration increased by 1.8 days to 25.6 days, suggesting that cars are taking longer to sell.
What This Means for Buyers and Sellers?
For buyers, the ongoing decline in prices presents an opportunity to purchase second-hand cars at more affordable rates. However, the extended duration of ads online indicates that sellers might need to be patient, as the market adjusts to these new dynamics.
Key Takeaways:
- Demand Growth: The demand for second-hand cars increased sharply in July, but this has not stopped prices from falling.
- Price Decline: Average second-hand car prices have been declining for 13 consecutive months, reflecting ongoing market adjustments.
- Market Insights: The decrease in the sales-to-listings ratio and the increase in ad duration suggest a more competitive market environment for sellers.
The Turkish second-hand car market is currently navigating a complex environment where increased demand does not necessarily lead to higher prices. For both buyers and sellers, understanding these trends is crucial for making informed decisions in the coming months.
Source: NTV / Prepared by Irem Yildiz