Commodity prices, rising logistic costs, and pick-up in exchange rates continue to be reflected in the zero and second-hand vehicle market as increases. In the first six months of the year, the increase in new vehicles reached 50 percent. According to the price lists published by the brands, in the last two months the prices of new cars have undergone increases of more than 150 thousand lire.
Looking at the latest market situation, in the period January-June 2022 there was a 9.3% decline in cars and light commercial vehicles in Turkey compared to the same period of the previous year. The number achieved on the market was 357 thousand 904 units. According to data from the Automotive Distributors Association (ODD), car sales fell by 10.3% in the first six months of the year and registered as 278,000 282 units. According to data from the Turkish Statistical Institute (TUIK), the second-hand market, which was 1 million 772 thousand 105 units in the first 5 months of last year, reached 2 million 456 thousand 879 units in the same period of this year. The numbers show that it directed the buyer to the second hand due to the zero availability issue. However, in the used market, prices have outpaced new vehicles. Industry representatives report that the average increase in used car prices between January and June was 60%.
According to the news of Sinem Eryılmaz of Mynet, Evaluate how long this increase in the new and second-hand vehicle market will last, if there is a bubble in vehicle prices and the latest situation in the automotive market, Savaş Açıkgöz, General Manager of Otomist AutomotiveHe said prices will continue to rise.
“PRICES WILL CONTINUE TO GO UP”
“The price movement for a zero car depends on several criteria. One of these concerns the currency activity in Turkey. The second concerns tax legislation. But now the taxes are settled here. No changes to the SCT are expected in the near future. However, there may be an agreement in the tax bases. This is what the industry expects. This can reduce the prices for some models. There are also increases due to the reflection of rising raw material costs on car prices in euro terms around the world. Of course, availability is one of them. Commodity prices continue to rise around the world. Therefore, there will be no return here, “Savaş Açıkgöz said, and made the following comment on the topic” Prices will rise even more “, which everyone is asking in the new vehicle market:
“Car prices will continue to rise in euro terms. At the same time, the logistics and transportation costs due to fuel prices for shipping products manufactured in the countries have increased significantly. All of this is reflected in the prices of cars. The increase here appears to continue. The trend is bullish. It doesn’t look like it will stop anytime soon. It is estimated that the possibility of the return of the foreign currency to Turkey will at least not be in the near future. Therefore, the prices of new cars will continue to rise. “
EVEN HOLIDAYS CANNOT SAVE
Stressing that the price increases of used vehicles are completely dependent on the availability of new vehicles, Açıkgöz said: “As long as the prices of new vehicles continue to rise and the supply of cars reaches the desired level, this will continue. But here’s an important situation. The mobility of cars over 1 million lire is almost interrupted. While there should be some serious pre-holiday activity, the industry has come to a serious halt. One reason for this is the expectation that the exchange rate will decrease with the statement made on the SPP. But this, unfortunately, was not reflected in the markets and the exchange rates rose above 17 lire. The expectation that the exchange rate will fall always delays buying on the market. Secondly, this situation was seriously reflected before the party. We hope that the decline in exchange rates will occur within the framework of expectations, exchange rates will decline and market expectations will be met. This creates the mobility that is postponed in the second hand, “he said.
ARE THERE BALLOONS IN THE CAR PRICE?
Noting that big second-hand traders have also shut down due to market uncertainty, Açıkgöz also cleared up the “bubble” allegations on vehicle prices. Saying: “There will continue to be mobility in cars below 700-800 thousand lire from now on,” said Savaş Açıkgöz, “As a sector, we cannot predict exactly when second-hand mobility will start. Even corporate brands in the marketplace. second hand, who shop heavily in Turkey, claim that they have slowed down their purchases in the last 10 days or even stopped them altogether. These show that the uncertainties in the market will continue. In short, prices will continue to rise. While prices are It has been rising for a long time, some say it is a “bubble.” I don’t think there is a bubble in car prices either. It is not a ‘bubble’, but prices with an infrastructure based on economic criteria. there is a return in the criteria I just mentioned, there will be a decrease in prices, “he said.