Contraction in the Used Car Market Continues

Motor Vehicle Dealers Federation (MASFED) Chairman Aydın Erkoç evaluated the first half of 2021 in the second-hand automobile industry. Stating that the negative effects of the pandemic were also felt seriously in the second-hand automotive sector, Erkoç stated that the second-hand car market spent 6 months of the first 5 months of the year with a decline.

Reminding that the market experienced an increase of 2020 percent compared to the previous year despite the Covid-19 epidemic that affected the whole world in 18,9, Erkoç stated that the industry entered a stagnant process as of the first month of 2021, and said:

“The problems experienced in the supply of new vehicles due to the epidemic in 2020 caused an increase in second-hand vehicle sales and prices. However, as of 2021, there is a decline in both sales and prices. The market, which was 2020 thousand 773 units in June of 260, decreased by 25,60 percent to 575 thousand 335 units in June of this year. The market, which was 3 million 128 thousand 945 units in the first half of last year, closed the same period of this year with 2 million 347 thousand 440 units. In the first 6 months of the year, there is a decrease of 6 percent compared to the first 24,98 months of the previous year.

Stating that the sector was adversely affected by the economic fluctuations and curfews experienced during the pandemic process throughout the year, and that the expected increase in the market did not occur despite the normalization process that started in May, Erkoç said, “Due to the uncertainties, citizens had to postpone their needs and demands. The market was expected to revive with the start of normalization, warming of the weather, increasing travel demand and holiday activity. However, the recession in the market continues,''he said.

Expressing that the possible problems that may be experienced in the production and supply of new vehicles due to the increase in cases around the world may cause the prices of second-hand vehicles to increase, Erkoç said, "Our citizens can take advantage of this opportunity while the prices are in their normal course."

Underlining that the decrease in bank loan interest rates is of great importance for the revival of the market, Erkoç said, “Due to the economic difficulties experienced due to the pandemic, the purchasing power of our citizens has decreased. Unfortunately, vehicle costs continue to rise. If loan interest rates fall, I think the market will move,'' he said. Mentioning the installment terms in vehicle sales, Erkoç reminded that in vehicle sales, 24 to 60 monthly installments are made according to the invoice value, and said, “Reducing the maturity dates negatively affects the automobile trade. While interest rates are rising, reducing maturities hinders trade,'' he said.