Supply-Demand Imbalance in Used Vehicles Opens the Door to Opportunists

Supply-Demand Imbalance in Used Vehicles Opens the Door to Opportunists
Supply-Demand Imbalance in Used Vehicles Opens the Door to Opportunists

Second-hand vehicles, whose prices skyrocketed due to the supply problem in new vehicles, shook the balance of the automotive industry. Although prices fell with the decline in the exchange rate, the imbalance between supply and demand paved the way for heavily damaged vehicles to be presented for sale by showing them as accident-free. One of the 4 vehicles arriving at the expertise dealers is recorded as severely damaged. The increase in heavily damaged vehicles in the market has made the TSE certified appraisal service even more critical.

The automotive industry, which was overshadowed by the chip crisis in the pandemic, went through a critical bend last year. According to the data of the Automotive Distributors Association, the increase in second-hand prices in the sector, where 2021 thousand 4,6 units were sold with a decrease of 737% in 350, destabilized the market. According to the data of the Motor Vehicle Dealers Federation (MASFED), although the second-hand automotive market closed 2021 at the level of 6 million 15 thousand vehicles with a 7% contraction, it followed a bumpy course. The regulations made by the BRSA in terms of vehicle loan usage this week are expected to bring activity to the second-hand market, which started the year sluggishly.

Emre Öztürk, Founder and General Manager of Experix Corporate Auto Expertise, stated that the chip crisis and the rise in foreign exchange prices in the pandemic shook the supply-demand balance in the second-hand automotive market and the weight of heavily damaged vehicles in the market continued: Despite price increases of up to . While sales decreased by 50% in December with the expectation of SCT reduction and decrease in loan interest rates, there was a decrease of up to 78,4% in prices. Although the decline in demand continued in 814, the weight of heavily damaged vehicles in the market made the TSE certified appraisal service even more critical.

“Can a fundamental change be made?”

Emre Öztürk made the following assessment regarding the new updates made by the BRSA in the vehicle loan terms of use: “The long-awaited update will increase the sales in the second-hand automotive market by removing the uncertainty in the market. We have been waiting for the regulations that will decrease the vehicle loan interest rates for a long time. Although current interest rates are considered reasonable by the market, the long waiting period also raises the question of whether a radical change can be made.”

4 out of 1 vehicles heavily damaged

Emre Öztürk, Founder and General Manager of Experix Corporate Auto Appraisal, said that the rising prices in the second hand brought the entry of loaded vehicles into the market and said, “Even vehicles with the status of scrap vehicles were sold for a period of time. The 1-year new model vehicles, which have been severely damaged as a result of a major accident, are offered for sale as if they were accident-free. These vehicles are refurbished using different parts, re-examined and marketed as accident-free. During the period we are in, one of the 4 vehicles that come to our dealers is registered as severely damaged. The increase in the weight of scrap and heavily damaged vehicles increases the need for certified expertise.

Indication of accidental added parts

Emre Öztürk, who said that expertise companies with deep-rooted experience and high technology power are of great importance especially in the detection of heavily damaged vehicles that are shown as accident-free, said, “Insurance companies can ignore the heavy damage of the vehicles by approaching the issue with a profit-oriented approach. However, the airbag explosions and the parts added later are an indication that the vehicles are heavily damaged. Failure to detect such situations during the sale puts vehicle users in danger financially and morally. As Experix, we were deemed worthy of the Best Expertise Firm of 2021. We offer reliable service with our high technological power. With our 26 years of experience and the most up-to-date software technology, we deliver our TSE certified service to every corner of Turkey.”

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