The stagnation experienced in the second-hand car market in recent years continues to increase due to high loan interest rates. This situation negatively affects car buyers and sellers.
New Safety Measures Are Becoming Mandatory in New Vehicles
Compliance with the European Union automobile and road safety legislation will be mandatory for new vehicles sold in Turkey. Dealers are trying to get rid of their stocks by organising campaigns for vehicles that do not comply with this legislation. This situation reduces the activity in the second-hand car market.
Dealers’ Promotional Prices Affect the Second Hand Market
The campaigns organized by dealers for new cars have a negative impact on the second-hand car market. The attractiveness of vehicles with safety packages directs citizens to new cars and reduces the demand for second-hand cars.
High Loan Interest Rates Shrink the Market
High credit interest rates are forcing car buyers to wait. Customers who buy a car both by taking out a loan and in cash are reducing the activity in the market. This situation is causing a decrease in second-hand car prices and a decrease in sales.
A Decline in Vehicle Prices Is Observed
It is stated that there has been a decrease of approximately 30% in vehicle prices in the past year. This situation negatively affects the sales of second-hand car dealers and reduces the activity in the market. A decrease in vehicle prices is also expected in the coming period.
