Unprecedented hike in used car prices!

There is a shortage of new vehicles in the automobile market. Accordingly, the increase in new car prices is also reflected in second-hand cars. The increase in car prices has turned the car into an investment vehicle. Those who want to buy a car, on the other hand, closely follow the changes in new and used car prices. Car prices have started to change on a weekly basis. Even though the prices are increasing, the demand for the car continues. The expectation of an increase in prices also causes those who want to buy a car to take action.

Activity has started in Eskişehir Second Hand Auto Market with few days before Eid-al-Adha. Those who want to visit their relatives during the holiday and spend the holiday by traveling searched for a vehicle suitable for their budget. Those who want to sell and buy vehicles have created a density in the sales area. Cars in the B and C segments filled most of the sales areas. The density in the second-hand car market was viewed from the air with a drone.

“If there is a clean vehicle, it is always sold”

Fikret Harlar, who came from Konya to the second-hand auto market in Eskişehir to put his vehicle up for sale, “The market is right now, if there is a good, clean vehicle, it is always sold. After the holiday, the market is very fast. The summer season has begun. When the holidays and holidays intervened, there were also changes in prices. Every commodity has a price. A car cannot be bought without an appraisal. Because it’s full of con artists” he said.

“There is an increase with mobility”

Noting that there was an increase in prices with the activity before the holiday, Kerem Bozuyer said, “It is nice that it is active before the holiday, but there is an increase with the activity. Car prices are rising. The vehicle is currently in need. There is a hospital, a funeral or something else going on, it is not always possible to go by minibus and taxi. Hopefully the prices will drop soon” he said.

Last minute announcement about car prices. While the increase in new car prices in Turkey shifts the demand to the second hand, the dynamism in the second-hand market draws attention. Saying that the demand for second-hand vehicles has increased due to the problems in the production and supply of new vehicles, Motor Vehicle Dealers Federation (MASFED) Chairman Aydın Erkoç said, “Currently, we are having a hard time finding a vehicle in the market. There was an artificial increase in prices as supply shortages arose and demand shifted to the second hand. While prices are climbing due to the chip crisis and the inability to supply some gas and mines from Russia due to the war, the expected recovery and return to normal has not yet happened. said.

Erkoç said that in addition to the disruptions in production, different factors that disrupt the market balance also cause the prices to increase. “Some foreign companies are entering the Turkish market by purchasing websites. It collects second-hand vehicles from the market, makes stocks, and keeps them in parking lots. We receive frequent complaints from our members about this issue. In addition to this, there are people who are unrelated to the profession who are engaged in the trade of this business, as the second-hand car is seen as a profitable investment tool. They want to create a profit door by turning the rapid rise of prices in their favor. This causes an artificial increase in prices.” he said.

‘Prices will increase by 25%’

Explaining that a mid-segment second-hand vehicle is currently in the range of 300-350 thousand TL, Erkoç said, “From now on, prices will increase by 25 percent. We recommend our citizens who want to buy a second-hand vehicle to buy a vehicle as soon as possible, as we anticipate that the price increase will continue. In addition, we say that they should prefer corporate companies and structures with authorization certificates so that they do not experience any trouble or fraud when buying a vehicle.” he said.

Erkoç said that they received suggestions from the representatives of the sector about bringing the import of less used vehicles to the agenda. “First of all, we, as sector representatives, support the belief that importing used vehicles for up to three years, while protecting our domestic and national industry, can be a solution until these problems are eliminated and prices return to normal. Not only individuals, but also brand distributors in our country can import vehicles.

As in previous years, if the import of second-hand cars is allowed until at least 3 years old, provided that taxes are collected, we think that imports will relieve the markets, provided that the model, year and engine volume conditions as well as domestic production are taken into account. As the vehicle supply problem will be eliminated with this temporary application, the price increase can be prevented or even a decrease in prices may occur. Our old vehicles, which are now a problem in traffic, can be exported to the Middle East countries, while meeting the supply need created by imports.” he declared.

‘Authorization required’

Informing that the demand will continue to tend to the second hand, Erkoç stated that there are studies that need to be done in order to regulate the second-hand sector, to solve the informality problem in the sector and to eliminate consumer grievances. Noting that one of them is the law that imposes a certificate of authorization, Erkoç said that the law should be implemented as soon as possible. Mentioning that those who prevent people in need from accessing cars by selling at exorbitant prices, completely disrupted the price balance in the market, Erkoç continued as follows.

“However, the trade carried out by competent persons with a certificate of authorization was formalized with a regulation to prevent these problems. If implemented, it will prevent those who make unfair profits and victimize consumers, and such an uncontrolled pricing environment will be prevented.”

‘Hold fast’

Cengiz Köse, the sector representative, said that the second-hand automobile industry had a very active period before and after the Ramadan Feast. “Prices continued to rise after the feast with the effect of the exchange rate. It reached its peak in the last two weeks. With this increase, the citizens preferred to wait. Prices will remain stable this week. Buyers should buy according to their needs during this period. Because in the coming weeks, they will have a hard time finding a clean vehicle with the features they want. They should use the opportunity in the two-week sales contraction to purchase vehicles. Otherwise, they will not have both price and product variety during Eid al-Adha. Because we are having trouble finding a vehicle.” he said.

Warning to car buyers

As the activity started in the vehicle market before the upcoming Eid al-Adha, auto expertise expert Mübin Keleş warned people who are planning to buy a vehicle.

Keleş said that citizens should definitely take the vehicles they buy to the auto appraisal, “If a vehicle is comfortable with the citizens at first glance, if we consider the increase in the market, they should buy it without thinking too much. I can make this suggestion. But they definitely need to take their vehicles to the appraisal. Because even in new vehicles, sometimes dented, rotten, We can come across painted pieces,” he said.

“Appraisal protects from serious problem”

Noting that some citizens find the auto appraisal prices expensive, Keleş said, “The appraisal prices may not be very positive. When buying a vehicle, we ask, ‘Why are we spending here again?’ They can think like they are. These small but high figures you spend protect you from a serious problem.” he said.

“Information is hidden”

Mübin Keleş continued his words as follows:

“Even an industrial master should take it to the appraisal when he buys a vehicle. Even though I am doing this job, or even though my teammates are doing this job, we have an appraisal done when buying a car. I just bought my car. Because, unfortunately, due to the ever-increasing prices, the information is a little more distorted and a little more hidden. Some people want to enter a more serial vehicle sales circulation. That’s why it’s important to know what it is and what you’re getting. Regardless of the sector or person, an appraisal must be done. “