With numerous brands intensifying campaigns such as credit, trade-in support, and cash discounts in the Turkish automotive market, a stabilization process continues in the second-hand market.
Last year, when sales in the Turkish automotive market hit a record high of 1,232,635 units, problems were encountered in automotive availability, disruptions were observed in supply-demand balance, and as a result, second-hand car prices were excessively inflated.
As a result of measures taken by the Ministry of Trade, closely monitoring developments, excessive high prices in the second-hand market were balanced. Following the loss of appeal of automotive as an “investment tool,” real buyers and automotive brands found themselves face to face.
Some dealers are selling below the list price
Following these developments since the second half of last year, it is stated that the new economic program has also supported the stabilization of prices.
Following recent developments, many automotive brands have initiated campaigns in new cars, such as credit, trade-in support, and cash discounts. It is stated that some dealers are selling below the list price, with discounts reaching up to 20% in campaigns.
Brands are observed to apply discounts of up to ₺100-₺300 thousand on new vehicles. Meanwhile, alongside cash discounts, brands’ financing campaigns are also ongoing.
Stabilization in second-hand vehicle prices
In the second-hand vehicle sector, according to Indicata’s second-hand online market report analyzing more than 450 thousand second-hand vehicle data daily, retail prices increased by an average of 0.73% compared to the previous month in April, and by 2.24% since the beginning of the year.
In the second-hand vehicle market, it is stated that the 2.24% price increase in the January-April period compared to last year indicates stabilization in the market.
“Dealers are starting to implement both cash discounts and organize campaigns within their own structures”
Hayrettin Ertemel, President of the Istanbul Motor Vehicle Sellers Association (İMAS), stated to AA correspondent about the issue, “Dealers’ annual orders from the past period started to accumulate in terms of stock. Dealers are currently implementing both cash discounts and organizing campaigns within their own structures for every brand and model.”
Stating that prices in the markets have stabilized, but they expect a slight increase in the second half of the year, Ertemel said:
“I think these campaigns will continue until the end of the year. Because sales volumes are not at the desired level right now. For this reason, every brand and model is developing sales strategies. According to these strategies, these campaigns will continue until the end of the year. Because high interest rates, difficult access to credit are factors currently challenging the automotive sector. Customers who come are mostly offering a trade-in vehicle and paying the rest in cash. This seems to continue for a while longer.”
Expectation for “July 7th” in Automotive
Ertemel stated that they also follow the news that within the scope of the “General Safety Regulation” (GSR) of the European Union, zero vehicles without GSR registration will not be allowed to be sold as of July 7th.
Ertemel, President of İMAS, commented, “Dealers and distributors want to get rid of these vehicles they have as soon as possible and actually get rid of this risk. Various campaigns are being organized for this. I guess if they can’t sell these vehicles by that date and they remain in their hands, they may bill them to themselves and maybe sell them later after creating a condition of 6 months-6 thousand kilometers and then themselves.”
Hayrettin Ertemel added that they expect a sales volume of 900-950 thousand units in the Turkish automotive market by the end of the year.
Source: AA / Prepared by Irem Yildiz