Betül Topaklı / Milliyet.com.tr – The Banking Regulation and Supervision Agency (BDDK) increased vehicle loan limits and loan rates last month. The positive reflections of this regulation, which excited the automotive industry, began to be seen on both new and second-hand vehicle sales. So, how did the regulation reflect on the second-hand car industry in the past month, what is the latest situation in the industry?
‘CLOSED BY 7 PERCENT’
Stating that there was a contraction in Turkey with the contraction in the world economy during the pandemic period, Aydın Erkoç, Chairman of the Motor Vehicle Dealers Federation (MASFED), “Due to the economic difficulties experienced, the second-hand sector closed the year 2021 with a decrease of 7 percent compared to the previous year.. Due to the fluctuating course of the exchange rate, high interest rates and the problems experienced in the production and supply of new vehicles due to the chip crisis. The contraction in 2021 unfortunately continued at the beginning of 2022.” said.
THE WAR PROCESS EXTENDED
Stating that the start of the Russia-Ukraine war, the problem of producing new vehicles due to the chip crisis in the world and the problems experienced in the supply of some parts, Erkoç said, “The situation in question caused the prices of new vehicles to increase upwards. This was also reflected in the second hand. Problems in production were expected to be resolved at the end of 2022, in the first quarter of 2023, but the war caused this process to be prolonged.” he said.
‘REVIVAL IN THE INDUSTRY STARTED’
However, despite this, positive developments began to be experienced in the second-hand sector. Aydin Erkoç, last month The regulation on vehicle loans carried out by the Banking Regulation and Supervision Agency (BDDK) has started to reflect positively on the second-hand automobile sector. told.
“Our citizens, who cannot use loans due to the restriction in vehicle loans, can use loans, and we can observe the movement experienced thanks to this regulation. Uncertainty in the markets caused our citizens to remain on hold. However, decreasing the down payment and increasing the number of installments mobilized our citizens who wanted to buy a vehicle but postponed it and were waiting.” MASFED President Aydın Erkoç.
‘RISE IN ZERO VEHICLE PRICES WILL INCREASE THE DEMAND FOR SECOND HAND’
Erkoç stated that, in addition to the BRSA regulation, the arrival of spring, the relaxation of Kovid-19 restrictions and the approach of Ramadan Feast will increase the vitality in the market.In addition, the rise in new vehicle prices will increase the demand of our citizens for second hand.” shared his opinion. Noting that the prices remained stable while the stagnation in the second-hand market continues, Erkoç announced that they expect the increase in new vehicle prices to be reflected in the second-hand vehicle prices as of April, and therefore the prices will increase.
14 PERCENT CONTRACT IN TWO MONTHS IN AUTOMOTIVE
According to Automotive Distributors Association (ODD) data, Turkish automobile and light commercial vehicle total market was determined as 87,783 units, shrinking by 14.1 percent in the January-February period compared to the same period of the previous year.. While automobile sales alone decreased by 16.8 percent to 66 thousand 661 units in the two-month period of 2022 compared to the same period of the previous year, the light commercial vehicle market shrank by 4.5 percent to 21 thousand 122 units.
Looking at the February of this year, the automobile and light commercial vehicle market decreased by 15.1 percent compared to February of last year and was recorded at the level of 49 thousand 652 units. In February, automobile sales decreased by 15.9 percent compared to February of the previous year and became 37 thousand 641 units, while the light commercial vehicle market shrank by 12.7 percent and was determined as 12 thousand 11 units.
‘THE BRSA DECISION GAVE THE SECTOR ACCELERATION’
Industry representative Cihan Emre also said that the second-hand vehicle industry is going through hard times due to exchange rate imbalances, chip crises and the Russia-Ukraine war. Emre stated that they experienced a job loss of nearly 50 percent due to these negative events. With the decision taken by the BRSA, the sector gained momentum. expressed. Emphasizing that the stable course of second-hand vehicle prices in the recent period, the supply problem in new vehicles and the constant increase in prices, led consumers to buy second-hand vehicles, Emre pointed out that the market will become even more active with the effect of the upcoming spring months and the holiday. Announcing that the real activity in used cars will be in April-May. Emre, “With the loosening restrictions, the holiday effect and the approach of summer, vehicle purchases and sales will accelerate. We recommend that consumers do not delay their purchasing decisions without expecting a decrease in vehicle prices.” said.