The second-hand vehicle market is focused on the exchange rate.

In Konya, while there has been an increase in vehicle prices during the pandemic process, dealers state that second-hand vehicle sales have decreased by 25% over the past year, noting that prices are currently reasonable. They warn that increases in exchange rates in the coming months could lead to price hikes.

The automotive sector was disrupted by production issues, the chip crisis, and raw material shortages during the pandemic. While vehicle prices rose during this period, the dealer tradesmen, who indicate that second-hand vehicle sales have dropped by 25% over the past year, emphasize that the increase in exchange rates will open the door to rising vehicle prices.

Abdullah Acıbadem, President of Konya Tire, Car Wash, and Car Dealers Tradesmen’s Chamber, explains that projects to stabilize prices after the pandemic are ongoing: “We experienced a pandemic process, and we never saw a time when daily vehicle prices increased or changed, making it difficult to say the vehicle’s current value. Because there was a market constantly trending upwards. Of course, our government and the Ministry of Trade took steps within the framework of the measures taken, especially regarding the uncontrolled increases in new vehicles, such as a limit of 6 months, 6 thousand kilometers, and this project has now been extended until January 1, 2025. So without completing the 6 months or 6 thousand kilometers, the notary system does not open any system related to that vehicle in any way,” he said.

“With interest rates gradually declining, we can say that investment will return.”

President Abdullah Acıbadem stated that investments in the sector will be directed as interest rates fall: “Of course, especially companies with a license or rental companies, normal companies are included in this framework. One of the most common misconceptions circulating on the internet is that ‘vehicle prices will drop in the winter or fall months.’ Let’s not pay attention to these rumors because there is no possibility for vehicle prices to decrease. For vehicle prices to drop, the exchange rate must fall or our government must implement additional reductions like a VAT cut. Otherwise, there is no possibility for vehicle prices to decrease, and on the contrary, the fluctuations in exchange rates continuously reflect on new vehicles, and every month we see an update and upward trend in the internet prices of a certain brand compared to the previous month. If we look at the price difference between a new car and a car that has been registered with a license plate or the same car, we can actually see this quite clearly. Of course, the high levels of interest means that the money allocated to the automotive sector is entirely flowing into interest-bearing deposits in banks. So, we can say that as these interest rates gradually decline, this money will return to investments, automotive, and real estate,” he said.

“Increases in exchange rates will definitely reflect on vehicle prices.”

President Acıbadem emphasized that the increase in exchange rates will also affect the vehicle market: “Most recently, with the inclusion of individuals in the 6 month, 6 thousand kilometers rule by our Ministry of Trade in the 7th month of last year, the black market sales by dealers, who sold vehicles for cash above the prices published by the distributor, had increased the bubble in vehicle prices even more. With the measures taken, the bubble in car prices deflated from July of last year until December and January. When we look at the prices from last year compared to this year’s prices, there is definitely a decrease of about 20-25%. This rate was actually completely a bubble rate. Currently, automobile prices are definitely at their normal value. With the increase in supply and demand, the gap between new and second-hand will definitely meet. That means prices will definitely rise, even if it’s slight. Of course, this will be shown by the exchange rate in the future. Increases in exchange rates will surely reflect on vehicle prices,” he stated.