Price Drop in Second-Hand Market

May 3, 2024

0 1 minute read

The second-hand vehicle market in Istanbul is currently experiencing a significant decrease in prices, with a drop of around 30 percent over the past year. Car dealers have noted that the stagnation in vehicle sales has intensified and that cars are no longer seen as a viable investment option.

The ongoing stagnation in the second-hand vehicle market has led to a notable decline in prices, with a decrease of approximately 30 percent compared to last year. Despite prices remaining relatively stable for some time, they have started to decrease in line with inflation. This trend has caused car dealers to voice their concerns about the increased stagnation in vehicle sales, emphasizing that cars are no longer considered a reliable investment tool.

Isa Temur, a car dealer, highlighted the current challenges faced by the second-hand car industry, stating, “Most citizens are currently in the process of selling their vehicles. We are also operating with minimal profit margins due to the high loan interest rates impacting the market. If these rates are not regulated, the market conditions will deteriorate further. Sellers are reluctant to sell their vehicles below the initial purchase price, while buyers are driven by financial necessity. The lack of installment options outside of banks has also contributed to the surplus of second-hand cars in the market. It is evident that there has been a significant 30 percent decrease in prices overall within the past year. What was once considered an investment opportunity is now seen as a mere necessity for many individuals.”

As the second-hand vehicle market in Istanbul faces continued challenges, stakeholders are closely monitoring the evolving dynamics and adjusting their strategies to navigate through the changing landscape. The decrease in prices and the decreasing interest in cars as an investment option indicate a shift in consumer behavior and market trends within the automotive sector.