Evaluating the effects of the fluctuations in foreign exchange and the increase in the supply of new vehicles on the second-hand vehicle market, Orhan Ülgür, Chairman of the 2plan Executive Board, stated that the upward trend of second hand prices slowed down; However, he stated that with the increase in new vehicle prices in the near term, the prices of second hand will also increase. Adding that the brands get a deposit for the vehicles they will sell in September and October, Ülgür said;
“For the months of September and October, before the price of the vehicle is known exactly, the deposit is given in advance and thus a pre-sale is made. However, as the increase in loan rates in addition to this increase in exchange rates will increase the price of the future vehicle, it may cause pre-sales with a deposit to be canceled by customers at the level of 20-30%. In addition to these sales that can be canceled in zero vehicles, the most intense period of the automotive sector may be an excess in the supply of new vehicles with the arrival of new vehicles to be produced in November and December. In this period, brands will be able to make special campaigns with both price and low-interest loan options in order to quickly melt stocks and sell them to customers. The fact that brands have spent June and July well will strengthen their hands for the actions they will take in November and December. The situation we are likely to face for the second hand market is as follows: I don't think brands will take any significant action for their sales in August and September. During this period, they will follow the economic and political developments. In this period, therefore, second-hand prices will move up a little in line with the exchange rate increases. Because brands have already reflected the increase in exchange rates to their products in the range of 5-10 percent. It is difficult to predict the months of October, November and December already; As we mentioned above, the developments in this process and the actions that brands will take on these developments will have an impact on prices and the market. "
"Second hand sales will be over 5 million this year"
Although the second hand sales were around 2020-2 thousand levels in the second quarter of 380, when the effects of the pandemic were seen; Saying that it reached the normal sales levels of 400-600 thousand in June and July, Ülgür stated that when the duplicate sales are deducted in 650, as in the previous year, the annual sales will be realized above 2020 million.
Reminding that the most preferred models in the second hand market consisted of vehicles in the 50-60 thousand TL band last year, Ülgür said that this level rose to the range of 80-100 thousand TL. In general, the preferred type of vehicle may be sold in accordance with Turkey and easy; Adding that the number of vehicles is not very large, Ülgür said, “We can say that these make up 70 percent of the market. The remaining 30 percent are cars that are in between, such as luxury and luxury six. Mostly will be sold faster; Sedan type vehicles with plenty of parts are being sought. Turkish people check the features of the used vehicle, its age, mileage, and whether there is any damage record. But of course the perfect tool cannot always be found. Therefore, the people who will buy the vehicle set a priority for themselves. For example; The greater advantage of being under 3 years old. It is very difficult to find a vehicle aged 100-1 years under 2 thousand TL. For example, if we talk about the 2014-2015 model years, it is obvious that there is a bigger cake there, ”he said.
Six different people profit from a vehicle
Ülgür also gave information about the individual sellers who are not used car dealers and stated that their number will decrease as the market returns to normal. Ülgür made the following statements on the subject:
“There are those who make secondhand money but whose main income is not from this business. People with furniture and similar jobs will withdraw from the market. Because the profits that keep them here are slowly disappearing. A single vehicle changed hands with countless repeat sales and reached the end user, and maybe 6 different people were making a profit in between. As the profit margins will decrease with the balance of the prices, there will be a decrease in these duplicate sales "
Supply shortage raises prices
Ülgür added that in order to evaluate the used vehicle market, it is necessary to go back until August 2018;
“At this date, the economy contracted due to the fluctuations in foreign exchange and recession occurred in the market. However, the SCT reduction introduced in October 2018 caused a boom in zero car sales. Along with this development in zero vehicles, the prices of second-hand cars decreased immediately. On top of that, as the fleet leasing companies purchased large quantities of new vehicles at affordable prices and in parallel offered the second-hand vehicles returning from the rent to the market, the prices of second-hand vehicles fell further; The second hand market has entered into a serious stagnation period that lasts 7-8 months, especially for the second hand companies that have vehicles in their hands. During this period, companies engaged in second-hand vehicle trade experienced losses of up to 25-30 percent. Subsequently, with the end of the SCT reduction in June 2019, everything started to return to normal and the prices of used vehicles and the market started to move upwards. In fact, these increases seen in the market were the second-hand prices, which had been braked for 8 months, quickly moving towards where they should be. This process lasted until the pandemic in March 2020. On the other hand, the supply shortage experienced in zero vehicles due to the pandemic effect and the low-interest loan conditions offered to support the market caused the demand in the second-hand vehicle market to explode and the prices to increase further.
"We Will Pass Our Goals"
Ülgür underlined that as 2plan, they set out to create a new value chain in order to facilitate the functioning of existing business models in the second hand market and continued his words as follows: “As 2plan, we started our activities during the pandemic period. At that time, we said we were experimenting with 6-7 dealers and now we are continuing our trials with 10 dealers. The trial process with most of them was positive and we started to apply our corporate identity. We had a target of 15 dealerships for the end of the year and we seem to be able to surpass this target in the current situation. On the other hand, we are currently carrying out the sales we have planned. The fact that we offered vehicles both in number and variety to our dealers resulted in a good process at the beginning of this business. We talk to them directly, negotiate and deliver their vehicles. Our dealers are also very happy to receive this service. Actually, 2020 will be a year when we will complete our corporate structuring. With both the stock financing and consumer financing packages that we will put into use in 2021, we will begin to grow in numbers. Our goal is 5 dealers, 100 sales and happy customers in 50.000 years.
Hibya News Agency