Revival Begins in the Used Car Market

The revival begins in the used car market
The revival begins in the used car market

Motor Vehicle Dealers Federation (MASFED) Chairman Aydın Erkoç evaluated the second-hand automotive sector and stated that the sector was adversely affected due to the economic fluctuations experienced during the pandemic process, and that the restrictions imposed as of the end of April also hindered trade. Expressing that the market became active with the beginning of gradual normalization as of the end of May and the arrival of the summer season, Erkoç said, "We think that the revival will begin in June and will continue throughout the year."

Erkoç said that there is a dynamism in the market every year in the pre-holiday period, but this year, the demands of the citizens are postponed due to the restrictions, adding, “The second-hand car market spent the 6th month in a row with March, with a decline. The second-hand market, which was 2020 million 1 thousand 973 units in the first four months of 977, closed the first four months of 2021 with 1 million 469 thousand 785 units. In other words, there was a 25% contraction in the market in total,'' he said.

Erkoç stated that the contraction in the market decreased with March and it entered a growth trend in April with the base effect. Stating that the market, which was 2020 thousand 231 units in April 977 according to EBS Consulting data, reached 2021 thousand 74,74 units with an increase of 405 percent in the same month of 351, Erkoç said: and they had to postpone their demands. Now, we think that the market will become active with the end of the restrictions and the arrival of the summer season,'' he said.

Underlining that the chip crisis in vehicle production worldwide will disrupt the production and supply of new vehicles in the short and medium term, Erkoç said, “In this case, we foresee that the demand for second-hand cars will increase. In the light of these data, we can say that the market will become active as of June and this activity will continue throughout the year.

100 out of every 57 used vehicles are over 10 years old

Reminding that the sales of new cars broke a record in the first 2021 months of 4 in Turkey, but to see the purchasing power of the citizens, it is necessary to look at the sales of second-hand cars, Erkoç said that 2% of the second-hand cars sold in Turkey in the first quarter are 2 years old and above. He stated that 84% of them consisted of vehicles aged 5 and over, that is, old vehicles. Pointing out that the fluctuating course of the exchange rate and high interest rates also affected the market negatively, Erkoç stated that interest rates should decrease and trade would gain momentum in this way.

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