New regulation puts cap on secondhand car prices

ANKARA

A new regulation that puts a cap on the prices of secondhand cars traded on online platforms have been published in the Official Gazette.

The regulation stipulated that the prices of secondhand cars cannot exceed that of new cars, the Trade Ministry said in a statement.

The ministry added that the new regulation is part of the efforts aimed at preventing unfair practices which distort supply and demand dynamics in the auto sector, such as stockpiling.

Those unfair practices lead to exorbitant price formations in the market and harm consumers, the statement added.

The price restriction imposed on cars sold on online platforms will enter into effect as of July 15 and remain in place until Jan. 1, 2024, the ministry said.

Those who place ads on online platforms to sell vehicles but violate the price regulation will first be warned by online platforms and if those legal entities and individuals ignore the warnings, information on those traders will be passed onto the ministry.

The violators of the price regulation will face up to 300,000 Turkish Liras in fines, according to the statement.

The Trade Ministry recently extended a regulation, dubbed “6 month/6,000 kilometers,” until Jan. 1, 2024.

According to the regulation, which was introduced in July last year, those who engage in car trading should keep the new vehicles they bought for at least 6 months or until the vehicles cover 6,000 kilometers before selling them.