Business

Regulation on car sales cap comes into force

A regulation imposing restrictions on the sale of second-hand cars to rein in a surge in vehicle prices has been published in the Official Gazette.

According to the new rules, those who engage in the trade of second-hand cars will not be able to sell their vehicle for six months from the first date of registration of the vehicle or until the car covers at least 6,000 kilometers.

The new regulation will be in effect through July 2023,and the Trade Ministry is authorized to extend it by another six months.

The cap on car sales will help bring car prices under control,Trade Minister Mehmet Muş said in his earlier comments.

People from the industry conceded that prices in the second-hand car market have been on the rise partly because of the availability problems stemming from the supply issues.

Car owners who want to sell their vehicles in the second-hand market take advantage of the supply problems by asking unreasonably high prices, they said.

They agree that the new regulation may bring down the price of cars if not immediately but in the medium term.

Meanwhile, Treasury and Finance Minister Nureddin Nebati said on Aug. 16 that officials identified around 100,000 individuals who engaged in practices that distort the working of the second-hand car market and cause exorbitant price increases.

“Also, inspections have been carried out on distributors, dealers and individuals selling new and second-hand cars, and actions were taken against those who failed to meet their tax obligations. Inspections in the field are continuing,” he said.

Turkiye’s automotive market contracted by 7.3 percent in January-July. More than 410,000 passenger cars and light commercial vehicles were sold in the first seven months of the year. Passenger car sales declined by 7.9 percent on an annual basis to 319,000 units.

Source
hurriyetdailynews

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