The EU effect is starting to benefit the Turkish consumer and the latest changes could see the cost of cars and servicing drop.
The market for buying new cars, servicing and parts will change from 1 January as the Government breaks the current franchise system. The new rules will enable car dealers to break away from required but restrictive one brand dealerships they currently operate and enable them to set up dealerships similar to the UK selling multiple car brands. The change in the law will also open the market up to new style dealers so that supermarkets would be able to sell cars if they so wish. These changes should see the price of new cars reduce over time as free competition kicks into place.
The repair market will also benefit from the changes. Up until 31 December, the law wouldn’t allow independent garages to fit original parts. This meant that only main dealers could service cars where the owner wanted to keep their warranty. But that will change and the owners of such cars should be able to save money as they can shop around their local workshops for the best deal.
Car industry experts have warned that the profitability of car dealerships will fall when the new rules are introduced.