The Trade Ministry has taken steps to address the issue of inflated prices for used cars sold online. According to the newly published regulation, it will be prohibited to advertise used motor vehicles at a price higher than the manufacturer's or distributor's recommended selling price until Jan. 1, 2024.
The objective of this regulation, as stated by the ministry, is to curb unfair practices, prevent excessive price hikes and restore a balanced supply-demand relation in the automotive sector.
Prices of vehicles in Türkiye soared due to supply shortages coupled with strong demand, as well as high inflation and the depreciation of the Turkish lira, which makes imports more expensive.
Both consumers and the government have blamed car dealers for price gouging. The government ramped up its audits to curb the prices and make vehicles more affordable.
The latest step came as the ministry’s effort to address consumer grievances and combat hoarding and excessive pricing practices in the automotive sector as well as stockpiling.
This regulation, which will take effect on July 15, applies to both individual and commercial advertisements from all individuals and legal entities.
Under this restriction, advertising platforms will notify all individuals and legal entities about advertisements that potentially violate the regulation at the time of placement. Any advertisement found to be in violation of this regulation will be considered as engaging in the trade of secondhand motor vehicles, and those responsible for placing such advertisements may face administrative fines of up to TL 300,000 ($11,534) per advertisement.
Türkiye has also expanded and prolonged a measure aimed at reining the surge in car prices for another six months, the country’s Trade Ministry announced recently.
Under a regulation unveiled last year, companies, car showrooms and car rental companies had to keep the cars they acquire for six months and cover at least 6,000 kilometers before being allowed to resell them.
The measure has been renewed to last until January 2024 and has been expanded to include individuals as well.
Authorities have imposed more than TL 75.17 million in fines on companies for practices such as excessive pricing and stockpiling, according to the Trade Ministry. More than TL 35 million in fines also came for violations of the “6 months, 6,000 kilometers” regulation, the statement read.
Car sales in Türkiye achieved their best May and five-month figures ever, according to industry data. Some 111,356 units of passenger cars and light commercial vehicles exchanged hands last month, marking a 70.9% year-over-year increase.
Sales in the first five months of the year rose 60.5% on an annual basis to 445,006 units.
