Used Car Market Shrinks by 7 Percent

In 2021, there was a 7% contraction in the used car market compared to the previous year. 54 percent of used cars sold in the last year are 10 years or older

Motor Vehicle Dealers Federation (MASFED) Chairman Aydın Erkoç evaluated the latest situation of the second-hand market and announced the sector expectations for 2022.

MASFED Chairman Aydın Erkoç stated that the second-hand car market closed the year 2021 with a decline and said, "The economic difficulties due to the pandemic, the fluctuations in the exchange rate, and the problems in the production and supply of new vehicles adversely affected the second-hand vehicle market."

Erkoç stated that since the first months of 2021, there has been a decrease in the second-hand market compared to the previous year and said:

The contraction that started in the last 2020 months of 3 continued until almost the last 2021 months of 3. The price increases due to the absence of vehicles and the fluctuations in the exchange rate adversely affected the second-hand market. According to the data we received from EBS Danışmanlık, the second-hand market, which was 2020 million 6 thousand 477 units in 153, closed the year 2021 with 6 million 15 thousand 36 units. There is a 7,1 percent decrease in the market.”

Underlining that 2021 percent of second-hand cars sold in 54 are vehicles aged 10 and over, Erkoç said, "In the light of the data, 81 percent of the vehicles sold are 5 years old, 54 percent are 10 years old and over, and 40 percent are 15 years old. and more vehicles. Purchasing power decreases as prices rise. This leads the demand to the second hand,'' he said.

Stating that the chip crisis still continues in the world, Erkoç stated that there are not enough chips, the factories stopped production, therefore it is difficult to meet the demand and find vehicles in Turkey, and this problem will hinder production until the second half of 2022.

Stating that a long-term solution is needed for the revival of the automotive industry, Erkoç said, “Special Consumption Tax (SCT) reduction and the exchange rate need to decrease. The SCT base limits are regulated, but the effect of the regulation is short-lived as the vehicle prices increase as the foreign exchange increases. For a long-term solution in vehicle prices, a decrease in the exchange rate and a reduction in SCT is required,'' he said.