While the tax system becomes dysfunctional with increasing prices, the price of even the cheapest is moving towards half a million at full speed. While the 60 percent and 70 percent tax rates, which were included in the system in the middle of January 2022, started to melt, the 50 percent tax rate disappeared in May.
The automobile and light commercial vehicle market in Turkey, which is in the grip of high exchange rates and taxes, is making it more difficult to own a new automobile. While the recent war situation and increasing costs have brought new price hikes to cars, apart from the exchange rate, the bill swells as soon as one enters Turkey. As TL depreciates, the value of cars increases, but purchasing power disappears.
According to the news of Ali Yıldırım from the Decision, the increase in tax brackets makes the car inaccessible. Almost 75 percent of the cars sold today are in the 80 percent SCT segment.
In mid-January 2022, 60 percent and 70 percent intermediate scales were added between the 50 percent and 80 percent SCT segment, which created major problems in the sector. However, just like the tax base increase in August 2021, it did not last long.
As the prices started to rise, the tax system in the automotive lost its function. According to the Automotive Distributors Association (ODD) data, sales increased by 19.1 percent in May during the period when supply problems continued with the data of May. While the automobile market increased by 20 percent, an increase of 15,7 percent was seen in the light commercial vehicle side.
Thus, a total of 65 thousand 167 vehicles were sold in May. However, in the same period, there were no vehicles sold in the 50 percent SCT segment. The price of the cheapest car increased to 315 thousand liras as of June 2022. If the system continues like this, the price of the cheapest car will rise to 500 thousand liras by the end of the year. Buying a new car in this system will no longer be possible even for the middle class.
While the rate of automobiles in the 60 percent SCT segment was only 6 percent, the level of 15 percent was seen in the 70 percent slice. In May, 51 thousand 750 automobiles were sold in total. 8 thousand 812 of these were among the models in the 80 percent SCT segment. 7 thousand 500 were seen in the sub-section 70 percent. Models with 60 percent tax bracket were sold out of 3 thousand 100 units.
EVEN AT THE DOOR, THE MONTHLY EXPENSE IS 2 THOUSAND LIRA
Otomerkezi.net CEO Muhammed Ali Karakaş, who said that every consumer has to take into account the executive costs while buying a car, said, “The triangle of inflation and high exchange rates, high interest rates make it difficult to buy a car, but also make it more difficult to execute. brings. In our research, we have found that 40 percent of our visitors have given up on owning a car because the running costs intimidate them. The increase in foreign currency indexed spare parts prices reached serious levels in damage repairs and periodic, light and heavy maintenance. The entire cost of running the car increased by 100 percent within 1 year. The point at which fuel prices have reached is also a factor in itself. It is not possible to have a car serviced for less than 2 thousand TL, for which you could have it serviced for 400-500 TL a few years ago. If you want to buy a set of 4 tires again, you have to sacrifice 5-6 thousand TL for an average car. When you add all of them, even if the drivers never use the car, they have to spend an average of 2 thousand TL per month at the place they stop.
MAINTENANCE COST INCREASED 100 PERCENT IN ONE YEAR
Saying that high inflation is the biggest handicap for service owners and investors, Aşin Automobile General Manager Okan Erdem said, “We want to take steps that will add value to the sector by making a new investment in the current conditions, but we are thinking about it a few times. Because, as sector representatives, it is difficult to predict 1 month ahead, even 1 week later. The first reason for the nearly 100 percent increase in maintenance costs in the last 1 year is that we are faced with a 91 percent increase in spare part prices in 1 year; In the field, we see increases of up to 200 percent in certain spare parts.”
3 MINIMUM FEES ARE BUT ENOUGH FOR THE LOAN
A consumer who plans to buy a car worth 500 thousand liras today may find himself in a difficult situation in the payment plan even when he gives 250 thousand liras in cash. The total cost of the 250 thousand lira loan in 36 months is 350 thousand lira. In other words, the vehicle purchased for 500 thousand liras becomes 600 thousand liras for the consumer. At the same time, monthly installments are at the minimum level of 10 thousand liras. In other words, it is nothing more than a dream that even an employee with 3 minimum wages has a new car under these conditions.