The Car Market Crashes as Attractive Offers Emerge: Latest News
Declines in Vehicle Prices Bring Hope for Consumers
Consumers in Turkey have been closely following the trend of declining vehicle prices, and they are eager to know whether prices will continue to drop further. In recent statements to Milliyet.com.tr, Hayrettin Er Temel, the President of the Istanbul Motor Vehicle Dealers Association (İMAS), shed light on the current situation.
Temel acknowledged that in the past, unfair practices such as demanding higher prices for second-hand cars than their new counterparts had created an imbalance in the market. However, he reassured consumers that measures have been taken to eliminate factors like unregistered trade, which caused unusual price increases. These interventions have successfully prevented exorbitant pricing resulting from an abundance of new vehicles. As a result, the price gap between new and second-hand automobiles is beginning to form once again.
Although negotiations for real prices are generally smooth, some consumers and car sellers may still hesitate due to high costs incurred in the past. Nevertheless, Temel assured that once this transition phase is completed, real prices will be fully reflected in the internet market, thus restoring the purchase/sale balance. This positive development not only offers vehicles at more affordable prices but also presents an opportunity to buy cars at reasonable rates.
The future trajectory of vehicle prices depends on various factors, including exchange rates, inflation, and Special Consumption Tax (SCT). If these factors undergo significant changes in the coming period, it might lead to a proportional increase in automobile prices. However, thanks to the reforms implemented, any price increases are expected to be acceptable and not exorbitant, unlike in the past. Presently, both new and second-hand cars have experienced price reductions of up to 15%. This makes it an attractive period for car buyers looking for affordable options.
During the period of rapid price increases, unregistered traders exploited the situation by demanding exorbitant prices for vehicles. These excessive pricing practices created an unsustainable cycle of rising prices. However, the Turkish Ministry of Commerce has taken measures to eliminate this environment of exorbitant pricing and deflate the price bubble. Consequently, the requested figures for cars, which were previously overinflated, have been withdrawn.
When it comes to popular car choices in Turkey, C Segment family cars remain the top preference. While diesel vehicles were more in demand in the past, the popularity of gasoline cars has increased as diesel car production has declined in recent years. Additionally, automatic transmission has become a significant factor influencing consumer preferences. In terms of sales, vehicles that are 5 years old or older, priced between 400,000 and 700,000 Turkish Liras, are the most sought-after. There is also some demand for vehicles that are 1-5 years old and priced above 700,000 TL, but the market for cars that are 5 years old and above shows less activity.
As the market adjusts and prices stabilize, Turkish citizens who are in the market for a new or second-hand car can take advantage of the attractive prices offered during this period.
