The automotive sector was disrupted by the production, chip crisis and raw material problems experienced during the pandemic period. While vehicle prices increased during this process, dealership tradesmen stated that second-hand vehicle sales decreased by 25 percent in the last year, and draw attention to the fact that vehicle prices follow the exchange rate.
“Due to the continuous small increases in prices, the gap between second-hand and intermediate prices has increased”
Stating that the price increase that started with the pandemic process has decreased in the last year, Konya Auto Tire, Car Wash and Car Dealers Chamber of Tradesmen President Abdullah Acıbadem said, “The process we experienced during the pandemic process is definitely not there right now, but there is a rapid sale in some brands and models in the market. Of course, everything here is completely dependent on the supply and demand balance. Prices are currently indexed completely to the exchange rate at the point of increase. Especially when we look at the figures published by dealers and distributors on the internet and today, to give an example, when we look at a vehicle with a license plate of 1 million, registered and launched on the market, there was a value loss of 8 to 10 percent compared to before the pandemic. Now, this figure has increased by 20 percent, up to twenty-25. Due to the continuous small increases in zeros, the gap between second-hand and second-hand has increased.”
“The high interest rates were reflected in automobile prices”
Underlining that the sector is closely affected by rising interest rates, Acıbadem said, “As all tradesmen across Turkey, our expectation is for the automotive sector to ease and for people to have easier access, we want credit card installments to be opened for individual and corporate cards. Of course, we always say that when people ask why many people cannot access it, it is because of bank interest rates, high rates of vehicle loans and low usage rates of vehicle loans. Because vehicle prices have increased a lot, individual rates given by banks are very low for vehicles. Of course, due to high interest rates, the vehicle cost is very high and monthly payment rates are very high and people cannot buy it. Another issue is that the high interest or interest-bearing deposits are reflected in the prices of both second-hand and new automobiles. For example, citizens sell their vehicles or if they have 2 cars, they sell one and invest their money in interest. Naturally, if the investor or the vehicle is a need, the citizen thinks of postponing the vehicle to a limited extent, and this creates an effective situation in the market.”
“There is constant pressure on foreign exchange for new vehicles”
Abdullah Acıbadem, who explained that the prices of new vehicles follow the exchange rate, said, “There is constant pressure on foreign exchange in new vehicles. Due to the constant increase in prices indexed to foreign exchange, that is, everyone who will buy a new vehicle at dealerships is naturally indexed to foreign exchange, they look at foreign exchange. Another issue is that people who will buy a second-hand vehicle are also waiting for the interest rates, especially, I emphasize again, the credit card installments to be opened as all tradesmen and citizens.”
