The secondhand car market experienced a notable shift in February, with prices rebounding after almost seven consecutive months of decline. Industry data indicates that used car prices had significantly dropped by nearly 25% since June of the previous year but began to show signs of recovery as the rate of decline slowed down in January and subsequently reversed course in February.

According to Hüsamettin Yalçın, CEO of Cardata, the prolonged decline in prices over the past seven months marked a correction in the secondhand car market, likened to a bursting bubble. This correction was accompanied by a substantial increase in the number of car advertisements on online platforms, surging by 54% from 550,000 to 850,000 since June 2023. The growing car supply has expanded options for potential buyers in the market.

Serdıl Gözelekli, Chief Retailer Officer at VavaCars, reported a 3% increase in secondhand car prices in February. The high demand for brand-new cars in the earlier part of the year, driven by concerns about inflation and favorable car loan interest rates, led consumers to purchase vehicles as both a protection of savings and an investment opportunity in the resale market.

Following the May elections, changes in the government's economic policies resulted in rising interest rates and the introduction of sales restrictions by the Trade Ministry for secondhand vehicles. These regulatory measures, alongside shifting economic conditions, have contributed to a more stabilized secondhand car market with decreasing prices.

Yalçın anticipates that secondhand car prices, which had surged by 65 to 70% over the past year, are likely to continue to increase in the short term, reflecting ongoing macroeconomic conditions. The evolving landscape in the secondhand car market underscores the interplay of regulatory measures, consumer demand, and economic policies influencing price trends in the sector.

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