Secondhand car prices rise last month

ISTANBUL

Prices in the secondhand car market had dropped for almost seven straight months, but started to pick up again in February, according to representatives of the industry.

Used car prices plunged nearly 25 percent since June last year for nearly seven months in a row but the rate of decline slowed in January. However, they increased last month, industry insiders said.

“The seven months of decline in the prices was kind of the bursting of the bubble in the secondhand car market,” said Hüsamettin Yalçın, CEO of Cardata.

The number of advertisements placed on online platforms increased by 54 percent since June 2023 from 550,000 to 850,000, Yalçın noted. “This means car supply in the market has increased and potential buyers now have more options.”

Prices of secondhand cars increased by 3 percent in February, according to Serdıl Gözelekli, chief retailer officer at VavaCars.

Demand for brand-new cars were strong in the first half of last year as people bought vehicles as an investment instrument to protect their savings against inflation also make financial gains by selling them in the secondhand market. At that time, interest rates on car loans were more favorable which fueled demand for vehicles.

After the May elections, the government’s economic policies changed course and interest rates started to rise. Meanwhile, the Trade Ministry introduces some restrictions on the sales of secondhand vehicles. All those developments pave the way for a more stable market for secondhand cars, where prices began to fall.

Secondhand car prices, which soared between 65 to 70 percent over the past year, are likely to increase in the short-term given the current macroeconomic conditions, according Yalçın.