Outlook bleak for second-hand vehicle market, says expert
ISTANBUL
The used car market contracted by 25 percent from June 2023, and an expert thinks the situation is not likely to change in the second half of the year as used car sales will remain weak.
Companies make special offers for brand new cars which support their sales but potential buyers of used cars do not have access to loans. Thus, potential consumers turn toward brand-new vehicles which impact the second-car market.
However, on the upside, due to weak demand, the growth rate of the price of used cars has slowed.
In the January-June period, the annual inflation rate was 25 percent, while the U.S. dollar/Turkish Liras rate increased by 15 percent. The increase in price of used cars was only 6 percent in the first half of 2024.
In June, prices of some second-hand cars declined between 2 to 4 percent.
If deposit rates remain as high as they are now, access to loans will still be limited, and if the dollar/lira rate stays stable, prices of brand-new cars are unlikely to increase, according to Hüsamettin Yalçın, the general manager of Cardata.
“A tough period is ahead for the used car market,” Yalçın said.
Consumer demand slowed in June due to problems accessing loans, according to Serdıl Gözelekli from Vavacars.
"The decrease in car demand, which leads to a decline in prices, simultaneously indicates a buildup of pent-up demand.”
