According to Otomobilhaber.com‘s report, the automotive sector in Turkey has seen significant shifts in recent months, and the used car market is no exception. The Automobile Market Outlook report reveals that the second-hand car market has witnessed notable changes, especially in March, as demand and transaction rates showed strong growth.
Increase in Demand for Cars
The report reveals that the car demand index for March rose by 5.3% compared to the same month last year. Furthermore, compared to the previous month, demand surged by an impressive 11.8%. These figures point to an increasing interest from buyers in the second-hand car market, signaling a recovery and heightened activity in the sector.
A key indicator of market vitality is the ratio of cars sold to the number of cars listed for sale. In March, this ratio increased by 1.4 percentage points, reaching 21.3%. This improvement indicates that more cars are being purchased as listings continue to rise, further showcasing the recovery of the market.
Prolonged Listing Durations
Another trend observed in March is the increase in the average time that car listings remain active. The “closed listing age,” which reflects how long listings stay online before being removed, rose by 0.4 days compared to the previous month, reaching 21.3 days. This suggests that cars are taking a longer time to sell, potentially due to shifting buyer preferences or changes in price expectations.
Declining Real Prices
Despite the market’s overall growth, the real sales price of cars continued to decrease, adjusted for inflation. In March, the real price index decreased by 2.1% compared to February, reaching 147.2. This marks the 21st consecutive month of declining real car prices, indicating that despite increased demand, the market is still grappling with inflationary effects.
Average Car Prices on the Rise
Interestingly, while real prices fell, the average car price in Turkey has seen a slight increase. The average price of a car in March was 950,515 TRY, a modest rise from the 947,152 TRY recorded in February. However, when compared to March of the previous year, there has been a significant 10.6% increase in average car prices, reflecting broader economic trends.
Expert’s Insight:
As the automotive market continues to recover, the demand for second-hand cars is becoming a key focal point in Turkey’s economy. It’s important to note that while the demand is rising, the market’s underlying challenges — including prolonged listing durations and inflationary pricing pressures — cannot be ignored. Still, the positive outlook in terms of sales activity is encouraging, and it seems that both sellers and buyers are adjusting to a new equilibrium. It’s a market in transition, one to watch closely in the months ahead.
For more details on this, visit Newstimesturkey.com.
Source: Based on reports from Otomobilhaber.com
