Price and Regulation Expectations in the Second-Hand Automotive Sector

Aydın Erkoç, President of the Federation of Motor Vehicle Dealers (MASFED), evaluated developments and expectations in the second-hand automotive sector. Erkoç called for pricing policies on listing websites, the 6-month/6,000-kilometer regulation, non-notary sales authorization, and special loans for second-hand Togg vehicles.

Pricing Policies of Listing Websites

In Turkey, approximately seven second-hand vehicles are sold every year for every single new vehicle. Stating that one of the most important problems of the sector is listing platforms, MASFED President Aydın Erkoç argued that practices on listing websites disrupt the competitive balance.

Erkoç stated that they do the actual work of the profession, but everyone else makes money. Pointing out that listing prices should be limited to inflation rates, Erkoç emphasized that if listing prices drop, this will be reflected on prices in a downward trend.

6-Month and 6,000-Kilometer Regulation

He stated that the regulation implemented by the Ministry of Trade in August 2022, which aims to prevent new vehicles from being resold at higher prices within a short period, met an important need in its initial period.

Stating that this need has now disappeared, Erkoç voiced that the continuation of the regulation reduces supply and affects prices upward because fleet companies cannot put their vehicles up for sale.

Non-Notary Sales Proposal

Making proposals regarding the notary system, Erkoç suggested that authorized galleries should also be able to carry out vehicle sales transactions outside the notary system.

Erkoç stated that they do not want the notary application to be abolished, but that authorized businesses should also be granted certain powers. He expressed that sales could be made through a secure payment system even on weekends and outside working hours.

Special Loan Demand for Togg

Stating that the second-hand market of Turkey's domestic car Togg needs to be strengthened, the MASFED President suggested providing special loan facilities for second-hand Togg vehicles through authorized institutions.

The annual second-hand vehicle market in Turkey has a volume of approximately 10 million units, and the regulations for the sector affect approximately 80,000 authorized businesses and millions of vehicle owners.