Expected Demand Explosion in Used Vehicle Market

Developments in the Vehicle Market in December According to TÜİK Data

The Turkish Statistical Institute (TÜİK) announced data on newly registered and second-hand vehicles in December. It was observed that the new vehicle market was lively in December. A total of 239 vehicles were registered, and this number increased by 993% ​​compared to the same month last year. However, since 19,9 vehicles were deregistered this month, the net increase in traffic was recorded as 5.

Vehicle Categories and Distribution

In December, 45,5% of the vehicles registered were cars, 39,6% were motorcycles, 9% were pickup trucks, 3% were tractors, 1,7% were trucks, 0,8% were minibuses, 0,3% were buses and 0,1% were special purpose vehicles. The increase in the number of vehicles registered compared to the same month last year was remarkable:

  • Minibus: 101,9% increase
  • Trucks: 69% increase
  • Motorcycle: 23,9% increase
  • Otomobil: 20,6% increase
  • Bus: 18,9% increase
  • Van: 11,3% increase
  • Tractor: 21,6% decrease
  • Special Purpose Vehicle: 1,7% decrease

Changes in the Second Hand Market

In 2022, a total of 10 million 689 thousand 113 vehicles changed hands through notaries. 7 million 103 thousand 550 of these vehicles were recorded as cars. In second-hand transfers, the number of cars increased by 2% and the total number of vehicles increased by 1,3%. However, it should not be forgotten that this increase was due to the sharp decline in the first half. In the first half of 2023, second-hand car transfers decreased by 17,7% and total transfers decreased by 14,4%. However, in the July-December periods, there was a 27,3% increase in cars and a total increase of 19,8%.

Assessment of the Chairman of the Motor Vehicle Dealers Federation (MASFED)

Motor Vehicle Dealers Federation (MASFED) Chairman Aydın Erkoç stated that there could be a serious decline in the market in the first six months of 2024, but the market has been picking up since July. Istanbul leads the way in the number of motor vehicles in Turkey, with a total of 3 motor vehicles, 812 of which are cars. Other major cities are as follows:

  • Ankara: 2 million 3 thousand 310 of which are cars, a total of 2 million 783 thousand 571 vehicles
  • İzmir: 1 million 14 thousand 507 of which are cars, total 1 million 954 thousand 408 vehicles

Prices and Market Situation

Erkoç stated that prices have fallen by 20%. However, he stated that citizens are experiencing difficulties in accessing financing. Reasons such as high bank loan interest rates and limited term periods in vehicle loans are causing stagnation in the market. Citizens who were previously able to use loans with high interest and long term options can now get much less credit for vehicles of the same value. This situation negatively affects the revival of the market.

Opportunities and Things to Consider When Buying a Vehicle

It is stated that this is one of the most suitable periods to buy a vehicle. The increase in vehicle availability and the real value of prices offer opportunities for buyers. However, the upcoming Ramadan holiday and the arrival of spring will increase demand and cause the market to become active again. Erkoç recommends citizens in need to buy vehicles that fit their budgets during this period.

Fraud Risks

Noting that affordable prices will accelerate purchases and sales, Erkoç warned that fraud risks may also increase in vehicle trade. He emphasized that consumers should not trade with people they do not know. It was also stated that it should be ensured that expertise centers comply with TSE standards. The fact that expertise centers provide a guarantee for vehicles will prevent possible victimization of consumers.