car sales

Car sales in Turkey soared 611% in July

The end of confinement and low-interest loans have skyrocketed car purchases, but also price of second hand cars.

Sales of passenger cars and light commercial vehicles in Turkey soared by a whopping 387.5% last July compared to the same month last year, according to data announced this week by the Automobile Dealers Association (ODD) , confirming the increase in car sales after the end of confinement due to the pandemic and the introduction of a series of loan incentives for the purchase of vehicles.

As reported this week by ODD in a statement, a total of 87,401 vehicles were sold in the country last July, compared to the 17,927 that had been sold in July 2019. Of the total sales in July, 17,974 corresponded to light commercial vehicles (vans) and 69,427 to passenger cars, representing an increase of 350.9% and 610.7%, respectively.

In relation to the average sales in the month of July of the last 10 years, vehicle sales grew by 42.5% last month, being 50.5% for passenger cars and 18.1% for light commercial vehicles, according to the data presented by ODD. Furthermore, between January and July of this year, vehicle sales totalled 341,469 units, corresponding to an increase of 60.3% over the same period last year.

The demand for passenger cars in Turkey has not stopped growing since restrictions were lifted in early June after the lockdown due to the coronavirus pandemic, and especially as three large public banks -Ziraat Bankası, VakıfBank and Halkbank- announced a low-interest loan package for individual and business customers wishing to buy new or second-hand cars.

Due to the halt in the production of vehicles during the confinement, added to the end of the movement restrictions and these low-interest credits, the car market in Turkey experienced a sudden and sharp increase in the prices of second-hand cars, because car manufacturers found they did not have enough stock to meet the demand for new vehicles.