Used cars burn pockets; Prices rose by an average of 83% per year.

SHAAFQNA TURKEY – Used cars have become an investment vehicle as the rate of exchange rate appreciation has slowed. While the used car market growth rate has exceeded 80 percent since May last year, the models with the highest value growth have been C-segment sedans under 5-6 years old. While stating that prices will continue to rise after the elections, sector representatives said that prices on advertising sites are far from the market ones.

The supply problem and the high inflation of zero kilometer vehicles in the automotive sector have made used cars one of the most profitable investment vehicles in a short time. The most profitable models during this period were mid-range sedans.

The prices of Turkey’s top-selling used cars rose by an average of 83 percent between May 2022 and May 2023, according to Cardata data. While the average price of used cars in May 2022 was 411 thousand Turkish liras, this figure increased to 754 thousand Turkish liras in the same period this year.

Increase up to 110% in some models

In segment C, price growth was faster. Over the past year, C-segment car prices have risen by 89 percent. Used car prices in C segment, which averaged TL 303 thousand in May 2022, rose to TL 572 thousand in May 2023 year on year.

While the share of SUVs in Kilometer Zero vehicles exceeded that of sedans, it was noted that sedans were the most sought after in the used car market.

“Prices are determined by advertising platforms”

CEO of Kardata Husamettin YalcinEmphasizing that advertising sites have also effectively set prices in Turkey for the past 10 years,”Dealers and galleries have been registered in determining prices on these job posting sites. The cost of a car is determined by looking at car prices on classifieds sites. Unfortunately, we are moving away from the realities of the market, the price of a car is determined.” He said.

“Prices are not expected to fall”

Husamettin Yalchin said people were investing in cars to protect the value of their money as there was no sharp exchange rate appreciation last year.

Noting that this trend will continue after the elections, Yalchin said:Price cuts are not expected. Demand in the used car market is still very high. Because the number of cars that can be bought in the used car market is a certain number. Prices will rise in parallel with the rise in the exchange rate.” said.