Revealed: Key Reason for Decline of Prominent Second-Hand Car Market Figure
The sharp decline in sales figures in the automotive market has left many wondering about the reasons behind it. Are sellers lowering prices to attract buyers? Which vehicles are currently selling the fastest?
According to Istanbul Motor Vehicle Dealers Association (İMAS) President Hayrettin Ertemel, the main factors contributing to the contraction in the second-hand car market are difficulties in accessing credit and high interest rates. Additionally, the majority of current demand is for new cars, as recent campaigns and low prices have shifted consumer preferences towards new vehicles.
While the new and second-hand car markets have different dynamics, they are interconnected and impact each other. Concentrating demand solely on new cars could have negative long-term effects on the automotive trade. Ertemel emphasizes the importance of planned and predictable pricing strategies to ensure the sector’s health.
As campaigns and favorable pricing continue to drive consumers towards new cars, the stock of vehicles not compliant with the GSR regulation is expected to decrease. This may lead to a slight increase in new car prices in the first quarter of 2025.
In terms of second-hand car pricing, there may not be further decreases due to the expectation of stable costs and new car prices. In fact, with cost increases from the GSR regulation, there could be some price increases in the second-hand market.
Cars up to 3 years old are selling quickly in the second-hand market, as consumers prefer newer models. However, cars of all ages and price ranges can find buyers if priced competitively.
Looking ahead, if campaigns due to the GSR regulation end in the coming months, consumer focus may shift back to second-hand cars. The expected increase in demand for second-hand cars could occur in the last quarter of the year as prices in the new car market continue to rise.
