Attention those who will buy a vehicle! The car market has become more active as the summer months approach. So, what will happen to vehicle prices after the holiday? Here are the details…
Hüsamettin Yalçın, General Manager of the automotive sector's domestic and national data and second-hand pricing company, said that the demand and price increases in the second-hand market as of the beginning of 2024 will continue in the coming months. Hüsamettin Yalçın emphasized that consumers have started to invest more in 800-1.2 year old second-hand vehicles, which are between 1 thousand lira and 1,5 million lira, than in housing, and said, “Second-hand prices increased by 12-15 percent in the first quarter. Those who bought second-hand cars at high prices in the past and kept their cars when the market crashed are now putting them up for sale. Therefore, the price of the vehicles put on sale also increases the market. No one should or can say that second-hand prices continue to fall. "Second-hand vehicle prices are not increasing exorbitantly, as they used to be, but we can say that they have found stability," he said.
Yalçın said that there was no contraction in the second-hand car market, contrary to what was thought, and noted that prices in the market increased by approximately 3 percent in the first 15-month period.
SECOND HAND PRICES INCREASE BY 3 TO 5 PERCENT MONTHLY
Reminding that second-hand car prices and sales started to decrease at the end of May last year, Cardata's General Manager Hüsamettin Yalçın said, “This situation continued until the last days of December and the market shrank by 30 percent. However, as of January 2024, the second-hand market began to slowly become active. When the demand for second-hand cars increased, it caused an increase in sales. In other words, consumers started to invest more in 800-1.2 year old second-hand vehicles worth between 1 thousand TL and 1,5 million TL than in housing. There have been monthly increases of 3-5 percent in prices since the beginning of the year. This meant that second-hand prices increased by 12-15 percent at the end of the first quarter. "This price increase will continue," he said.
Emphasizing that it is trying to meet the mobility needs of the consumer with factors such as before the holiday and the approach of the summer season, Hüsamettin Yalçın continued as follows: “The dynamism in the new car market is actually similar in second-hand cars. Those who bought second-hand cars at high prices in the past and kept their cars when the market crashed are now putting them up for sale. Therefore, the price of the vehicles put on sale also increases the market. No one should or can say that second-hand prices continue to fall. Second-hand vehicle prices are not increasing exorbitantly, as they used to be, but we can say that they have found stability. When you look at it today, the average price of a zero kilometer C segment car is around 1.3-1.6 million TL. In an era when credit taps are closed, purchasing a new-mileage vehicle has become almost exclusively cash. Approximately 60-70 percent of people who could not reach this price turned to second hand equipment. Second hand has started to settle back into the position where it is in more demand. "Depending on monetary policies, inflation and interest rates, second-hand demand will increase further in the second quarter of the year."
SECOND HAND PARK WILL START TO REJUVENATE
Hüsamettin Yalçın pointed out that the new car market will maintain its stability even though it experienced a slight loss of pace in the second quarter, and said, “But the second-hand car market will continue to grow more dynamically and more steadily than the new car market. 15 model zero mileage cars, which brands sell at 20-2023 percent lower prices, are also sold out. The higher prices of the 2024 models will also direct consumers to second-hand cars. Many new brands, especially Chinese ones, now have heavy vehicle sales. Consumers who can afford it are also trying to buy more second-hand cars with new technology and get rid of their old technology vehicles. The average age of second-hand vehicles is still 8-12 years. "We predict that the second-hand park will become much younger in the next 3-4 years," he said.
