As every year, as the Ramadan festival approaches, citizens preparing for the holiday turned to used cars. Bayram mobilized the used car market. While the galleries are showing keen interest in the vehicles they are preparing for the holiday, they predict that this density will only increase as the holiday approaches. Citizens were observed bargaining in car markets to buy used cars. The approach of the Ramadan holiday and the increase in density have also pushed up vehicle prices. Dealers said used car prices rose 4 percent from the previous month.
Bayram mobilized the used car market
Car dealer Yılmaz Kebapçı, who explained that the activity in the used car market started as the Ramadan festival approached, said: Of course, with the increasing demand, a slight increase in car prices can be observed. Compared to the previous month, used car prices rose by 3-4 percent. The chip crisis is expected to continue for a few more months. We think that the increase will continue after the next holiday. We bought our cars as much as we could and prepared them for sale. We offer our vehicles for sale via the internet and social media. We are completely ready for vacation. As the holidays approach, the phones start ringing and we think it will get even more. I think now is the perfect time to buy a car. Summer is coming, holidays are coming, our people will be going to their hometowns, now it’s time to buy a car,” he said.
If you want to travel comfortably on vacation, you can use a used car.
Car dealer Yavuz Çifçi, who said that citizens who want to go to their hometown on vacation turn to used cars, said: “If we look at it regularly, there is a movement in car prices. As we approach summer every year during these months and the number of holidays increases, there is an automotive-related activity in these periods where people start creating holiday programs. During this period, people either change their car or buy a new car. Now, with the approach of the Eid holiday, the activity has started. Now is the time to buy a car. There was a slight price range in car prices. If we look back over the past few years, we’ve had a pandemic, people couldn’t leave their homes, and there seemed to be no car sales. This year it is one of the first public holidays that we can travel comfortably after the pandemic. People are smiling and citizens are turning to used cars because they want to make their vacation comfortable. Due to the chip crisis and the limited number of new cars, the supply will not be able to meet the demand and prices will continue to rise after the holidays, I believe,” he said.
Even with a new car, a salary increase is just around the corner.
New increases in car prices are just around the corner. With the Russia-Ukraine war, production costs reaching record highs in factories will bring new price increases for cars starting in May.
According to the news of Ayşe Yücel from the newspaper Dünya; Car prices in Turkey have risen by an average of 8 percent since January. For some brands and models, this rate is as high as 20 percent. The price increases are significantly higher, especially for vehicles with changing tax brackets. However, according to industry representatives, the actual price increases on the market will only start gradually from May onwards.
In fact, the impact of the increase in production costs on automobile prices was an expected development. However, the extent has not yet been specified. The first statement on the subject came from Ziya Alp Gülan, a member of the Istanbul Chamber of Commerce (ITO) Vehicle Sales and Service Committee Assembly. Gülan said that only the cost of leaving the factory would increase by 25 percent by the end of the year. Gülan also brought contraction and price hikes in the auto sector to the agenda of the ITO parliamentary session in April.
“Only the palladium crisis has increased production costs by $200”
Recalling that the market has been declining in recent years, Alp Gülan said: “The market continued to decline this year as well. We lost 30 percent in March. Due to the vehicle availability problem due to the chip crisis, we didn’t feel the drop in demand much, but another danger arose. New tariffs. This time, an increase of 25 percent is expected due to external problems not caused by us.” Gülan expressed that the Russia-Ukraine war has a big impact on these future price increases, saying: “Only in Russia -Ukraine war, the cost of production of internal combustion engines increased by $ 200 due to the absence of the palladium mine and the increase . On the other hand, energy costs have increased. The logistics costs have increased. Added to this is an increase in inflation worldwide. Unfortunately, if we collect all this, cars will go up 25 percent to Turkey by the end of the year, even if the exchange rate doesn’t go up,” he said. It’s just an increase in the basic cost of cars leaving the factory. Gülan pointed out Please note that this rate may increase depending on the tax system and exchange rate in Turkey.
The investor keeps the market alive
On the other hand, Alp Gülan said that the expectation of rising prices prompted investors to act, saying, “People who buy cars for investment purposes keep the market alive, if a little.”
ODD President Bozkurt: Price increase inevitable
Ali Haydar Bozkurt, President of the Automotive Distributors Association (ODD), stated that new increases in automobile prices are inevitable due to rising costs in the industry, saying, “The record rise in raw material prices and the increase in logistics costs in the recent period will lead to this that cars are increasing. We will see these migrations from May and June,” he said. Bozkurt emphasized that the significant increase in car prices in Turkey in recent years had a negative impact on sales: “Even if the chip crisis had never been on the agenda and we could deliver as many vehicles as we wanted, we would have caught up at most last year with these prices, the level of the exchange rate and the credit options available.” . In 2021, sales of automobiles and light commercial vehicles in Turkey amounted to about 737,000 units.
DS CEO Foucher: All European prices are going up
On a visit to Turkey last week, Beatrice Foucher, CEO of DS Automobiles, answered questions about car price increases and said: “Vehicle prices are going up. On the one hand the raw material, on the other hand the chip crisis and the increasing demand. On the other hand, logistics costs continue to rise. Because of the war, things go to completely different places and it gets complicated. Due to the increased vehicle costs, we as a manufacturer have to raise prices. We try to maintain similar price positioning by following the market and competitors. We are currently pricing in Europe 2.2 percent above our German competitors. The entire market is raising its prices for the time being. What will we do when we get to the point where people will pay for it… Although high prices are not socially acceptable, we see that every product we produce is sold and we await the arrival of a new vehicle . With more chips and increased production next year, we will be able to meet market expectations. The current operation is of course not normal, we foresee the normalization of 2023. But of course, as I said, it was not to be expected that such a major problem would arise.
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