ŞİMŞEK GELDİ, OTOMOBİL YATIRIM ARACI OLMAKTAN ÇIKACAK MI? | EMRE ÖZPEYNİRCİ | EKONOMİDE SAADET

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Dear viewers of Sadet YouTube, this week we have this impromptu live broadcast. Actually, we were planning to do the show on Thursday, but due to being abroad, we decided to have our broadcast tonight. I know that your minds are confused, and even before going live, we were discussing among ourselves. I said that we should sacrifice the last bit of sanity of the Turkish people to Mehmet Şimşek's Urla, and I truly understand and find it justified. Despite being professionals in the market, we are naturally drawn to these issues. We are trying to raise the level of financial literacy of the unemployed through these broadcasts and take the whole country to a certain point. So, I can't help but agree. Especially the title was chosen for him, Şimşek. It's all over now. In fact, today on social media, if there are any viewers among you, especially on Instagram and in announcements, I made the broadcast announcement with the theme song of a film that I really loved, "Kara Şimşek" (Black Lightning). Please don't keep us waiting any longer. I invite Emre Özpeynirci to join our broadcast tonight. Welcome, sir, straight from Milan.

Thank you, I appreciate it. It looks very cool, but we're actually working, so please don't say such things. Bilal, I was joking, by the way. I'm going to Milan tomorrow. It's been a long time since I traveled, especially during this pandemic period, very few people have traveled, so I feel a bit strange. In the past, whenever I went somewhere, I used to have this kind of love and excitement, and I would make social media posts about how beautiful it was, but yours seems to be a bit more work-related and, as far as I can understand, it's also a bit chaotic. After all, since all the car brands sold in Turkey are international brands, their world promotions, that is, the models are tested and sometimes shown statically to the international press before they are released for sale. Then there is also a testing program. These are ultimately vehicles sold worldwide, and a country is selected where journalists from all over the world come. Our goal is to test and convey our initial impressions before the vehicles are released to the market. So, our travels are not so touristy. For example, we rush to attend a meeting, do interviews, check the cars, then return to the airport without even seeing the city in most cases. It becomes a busy schedule, but enjoyable.
Alright, let me say this. I'm not very knowledgeable about cars, but I keep coming across car models in your posts on Instagram or Twitter and I go like, "Wow, what an amazing car," and I like it. I wonder which brand it is, but I really don't know. However, they are truly magnificent. Now, this evening they told me, especially before the broadcast, I always respect the viewers on Twitter, so they told me, "Madam Adet, please speak less." Okay, I can speak less, but I don't know how I'm going to ask questions when I need to.
Well, our minds are really confused. Dr. Emre Özpeynirci has come to us. I apologize, we are really in chaos. Onur, it's amazing that Mehmet Şimşek joined us. The car doctor prescribed him and he came. We have a lot to say, there are many complaints, but before we get to that, tell us, what happened in the automotive market before Şimşek and what is happening now after Şimşek? Let's go back a little

00:04:23–00:05:04 It will make more sense, as if it will help understand the changes that will happen to Mehmet Şimşek. Welcome again, and I'll leave the floor to you. Welcome, my brother. The automotive market, especially after the pandemic in the last 23 years, you know, initially faced serious supply shortages. There were few cars coming in, but the demand was high because there was a backlog of postponed demand. However, when the number of cars increased a bit, it actually boosted the demand for cars in Turkey due to the country's economic policies. Because, you see, it is essential for the Turkish lira not to lose value under high inflation, and cars have become one of the most important investment tools.

00:05:04–00:05:25 But I always say that cars are not an investment tool, they are a necessity. Yes, there was a very nice tweet of yours that said, "Cars are not an investment, and I retweeted it immediately." That's the point we're going to get to. Cars are not an investment, really. In places like Istanbul, they are a necessity if you want to be mobile.

00:05:26–00:05:35 Truly, it's a necessity, not an investment. That's the essence of it. Especially if you live in a city like Istanbul, it's really a need.

00:05:35–00:06:17 It's a genuine need, and we're beyond it being an investment tool right now. But of course, there's that aspect as well, sorry for digressing. No, no, don't mention it. After all, in countries with weaker public transportation systems like Turkey, having a car is our only means of being mobile. Therefore, in this sense, a car is a significant need, a serious need. We saw this during the earthquake period and the pandemic. Especially during the pandemic, people got in their cars to escape a bit, to break free from the confined environment. Those who didn't have a car, unfortunately, couldn't leave their homes. When you add all these factors together, we realize that it is indeed a necessity. Just imagine if it were considered an investment tool.

00:06:17–00:06:59 So, imagine you've parked your car, and someone comes and crashes into it. That investment is gone in an instant, so it's not an investment after all. However, the country's economic conditions have turned the car into an investment tool because it is the only commodity that provides returns above inflation. I shared this today. Yes, not like that. I based it on Turkey's best-selling car, considering its base features. Since the beginning of the year, it has gained 39.60% compared to gold, euro, and dollar, and the situation of the stock market is evident. The stock market is in the negative. Of course, it upset stock traders, and they reacted to me, but I believe it is not true. It should not be true because turning a car into an investment carries significant risks. We don't know what will happen to the economic policies with Mehmet Şimşek's arrival, but looking at the current conjuncture, they say there is a shortage of cars. They say they can't find cars because over 40% of the buyers purchase cars for commercial purposes, while the remaining 60% buy them for investment purposes. For example, if you have Turkish Lira at home or in a bank deposit, the annual return on labor fund interest is around 30-33%, while a car returns around 40% in 45 months. Therefore, people withdraw their money from deposits to buy cars to increase their value. But they forget something. We experienced this in the past. Yes, at the moment, it seems like cars bring profits, or rather, they cause the devaluation of the Turkish Lira. The profit part is like this: buying a car comes with routine costs. You buy a car, and unlike gold or dollars, you have to maintain it regularly, pay for insurance, buy fuel, cover the service costs, pay motor vehicle taxes, and so on. Suddenly, everyone is buying cars everywhere. In the basements of shopping malls, people notice there are 5 or 6 cars per person. So, there is opportunism from every angle. It's not just authorized dealerships or second-hand businesses doing this. Everyone is doing it. For example, even doctors buy 23 cars, thinking, "Let me make money from this. I can't make money by keeping it in a deposit or in dollars or euros. At least I can use the car and make money." It's not just companies involved in this business; individuals are doing it too. I mentioned earlier that more than 40% of the purchases are for commercial purposes. I repeat it. A General Manager also mentioned this a few days ago: over 40% of the purchases are speculative. What does that mean? You buy a car today, put it up for sale on a used car website tomorrow at a higher price. The remaining people have money, and they don't want their money to devalue. That's why they buy cars for investment purposes. Maybe they are not buying them to sell, but at least they don't want their money to devalue, so they buy cars. Now, another situation has emerged. When there is such demand for commercial and investment purposes, those who actually need a car can't buy one. They can't find one. What happens? They say there is a waitlist of 3 months or 5 months. On the other hand, people think, "If I wait 3 or 5 months, the authorized dealership will increase the price by 30%. So, let me add 30% on top of the price now, and if the person agrees, I'll sell it to them." Some say, "Instead of waiting for 6 months, I'll pay 30% now. Okay, I'll get a higher return." These buyers who make such purchases complain, and then people say, "Don't buy it, then. Just wait." I'm not saying anything for those who don't have a car, but I don't understand those who complain after paying exorbitant prices for cars that already exist. But there's also this situation in authorized dealerships: if you give them cash, they might make you wait for 3 months, but if you wait for a week, they will sell it to you.

When there is demand, those who actually need a car can't go and buy one; they can't find it. They say there's a waiting list of 3 months or even 5 months. Now, on the other side, people think like this: "If I wait for 3 or 5 months, the authorized dealer will increase the price by 30%. So, let me add 30% on top of the current price and sell it if the person agrees." Some individuals say, "Instead of waiting for 6 months, I can earn more by accepting a 30% increase." Now, these types of buyers complain, and then they say, "Don't buy, just wait." Now, I'm not saying anything for those who don't have a car at all, but I really can't understand those who complain after paying such inflated prices for a car that they already have. But there's also another situation: in authorized dealerships, if you give them cash under the table or directly, they make you wait for 3 months, but if you wait for a week, they sell it to you. Now, that's exactly what I was going to say. Some dealerships are open to such arrangements.

Yes, there are many, many of them, but here's the thing. Ultimately, as we look at it, it's a period of making money from money. Some say that we can't find such an opportunity because customers are eagerly waiting at the door. Those who are willing to pay will pay, and those who are not will wait. So, here's the question: What is your need? Do you want to become a car owner as soon as possible because you genuinely need it, or is it just to make more money? Or maybe you really need it to accommodate your family and expand your car fleet? If you have an old car and you don't want to spend that money, then wait for 3 months because we don't know what the prices will be after 3 months. If it were a normal situation, with President Erdogan's ongoing interest rate policy, we know that car prices would never decrease, they would only increase. But now, in the new situation, the new economy, with the new president Erdogan being reelected, it seems like the parameters in the economy might change. That's why I'm saying a car is a necessity. If we think of it as an investment, we don't know what tomorrow will bring. Now, if Mehmet Simsek has managed to convince everyone and if President Erdogan decides to abandon the interest rate policy and raise the interest rates, then the game will change. But will that happen? We've experienced this before with Naci Agbal and the previous economic management. It lasted for 23 months. Is it just a phase, or has he truly gained full authority and will continue with a strict belt-tightening and a new economic policy after the upcoming election? We will see in the coming days, frankly speaking. How much do we have to pay for this bitter prescription? We will see the magnitude of that. That's why people are very confused, and I understand them. But I also have to say this during this broadcast. We have been speaking about the truths of the economy all this time. Why have you been subjecting us to this for a year and a half? Was there a conjuncture for interest rate cuts in September 2020? We passionately explained, explained, and explained, but they said we were followers, pro-interest lobby, opponents. But one thing is true. When Mehmet Simsek took office, he said rationality would be restored, and there was a monthly reversal. This confused people's minds again, understandably. They thought, "Is it really as you said? Has Mr. Tayyip Erdogan been convinced and given full authority after pushing us into this corner for the past year and a half?" We can only wait and see. Time will show us this; it will show us whether or not they can demonstrate this to us.

Well, yes, we don't know for sure. We don't know what Mehmet Şimşek's rationality is, or if it aligns with President Erdogan's rationality. All of these are question marks. But I can say this clearly, at least from the perspective of the automotive industry. As I mentioned before, the agenda changes every day, but in the automotive sector, there is no such situation. If interest rates rise, if the exchange rate falls, if inflation decreases because when interest rates increase, the growth rate will decrease, and when the growth rate decreases, inflation will decrease. That's when car prices rise like that. But when the exchange rate falls, I mean when it falls significantly, well, then we're talking about a different scenario. I don't think that will happen, let me clarify that. People ask this question all the time, why don't prices decrease when the exchange rate falls? No, if the exchange rate falls significantly, then prices will also decrease. They need to understand this. Cars are not like, okay, today car prices increased by 5%, and if the exchange rate drops, it will decrease by 5%. No, the customs value of the car is based on the exchange rate that you used at the customs. So, even if the exchange rate is cut in half, your cost of goods remains at the initial exchange rate because the cars are sold out now. If there are cars in stock, which were imported at a certain exchange rate, even if the exchange rate drops, your input costs remain based on the initial exchange rate. But of course, currently, cars are not available because they are sold out. So, in the future, for the upcoming vehicles, they will be imported at the current exchange rate, and they will be traded based on that rate. But in Turkey, the exchange rate is not the only factor that increases car prices. There are other factors such as production costs, component costs, and logistics costs, which are increasing. The increase in car prices is not solely due to the exchange rate. For example, if production costs increase by 1% abroad, due to taxes and additional charges, the impact is multiplied when it reaches us.

We also have a distorted system here. Let's say there was a 2% increase in foreign costs for your car, and a 2% increase in logistics costs. However, due to the TV tax bracket, that 2% increase in logistics costs becomes a more than 10% price increase. So, car prices are indexed to the exchange rate, but the exchange rate is not the sole factor. Other parameters also need to improve along with the exchange rate. Especially the burden of TV tax and tax base needs to be reduced. If those improve, then we shouldn't expect a significant decrease in car prices, but it won't keep increasing at such a rapid pace. It won't decrease, but the rapid increase will stop if the exchange rate stabilizes or if the interest rate policy changes. But then we face another problem. Those who genuinely need a car but don't have enough money buy it on credit. Before the pandemic, 70% of cars sold in the automotive sector were purchased with credit. Now, that rate has dropped to 10% because credit is not available. The interest rates are very low, so if you buy a million lira car, you can only get a 30% loan, which is 300,000 TL, with a 12-month or maximum 24-month installment, but not everyone offers it. Therefore, even if the price increase in cars stops, due to the interest rate policy, the pace of increase in car prices will decrease due to the exchange rate and other factors. But in this case, car purchases will not be for trade purposes but for investment purposes. Suddenly, cars will no longer be purchased for investment purposes, and they will be left to those who genuinely need them. However, when those individuals knock on the doors of banks, they will face challenges.

There is no credit available, or even if there is, the interest rates on loans have increased, so people will still face difficulties in the end. What will happen is that car sales will suddenly plummet. We have seen this before, in 2010 and 2018, when suddenly, about 90% of customers bought cars for investment or commercial purposes. The rate of those who bought cars for their personal needs was very low. With the increase in interest rates, the result will be that the return on deposits will surpass the return on cars. So, I repeat, if interest rates rise and the exchange rate remains loose, car prices won't decrease, but the pace of increase will slow down, and buying cars for investment purposes will no longer be attractive. In that case, cars will be left in the market for us to buy. I think that's how it will be. I don't know if I could explain it properly. The balance you mentioned, in terms of Mehmet Şimşek's actions and policies, is something we all have in mind. The price of money was so low compared to the price of goods and services that it needs to be balanced out somewhere. But we don't know where that balance will be. Secondly, I believe that people will be happy because I've heard it a lot. Even I have someone I work with, Sait Hanım, who said she really wants to buy a car on credit, even though she doesn't need it. But with the current election atmosphere, banks have almost completely halted lending. I don't know if anyone was able to get a loan in May. Now they are undecided about how to determine interest rates, so I hope the credit market opens up a bit. Also, I want to mention that when there is normalization and some easing, even if there is a slight increase in interest rates, our main need will be how to increase tax revenues. In that case, I expect the TV tax to increase rather than decrease, but then it won't be reflected as an increase in car prices. Yes, this is correct in the current scenario. Previously, as you know, a former minister announced that the cars that arrive are being sold. So, let's forget about reducing the TV tax; we are thinking about increasing it. When we look at February, March, April, and May, record-breaking sales were made, exceeding the 10-year average by two-fold. People are still sending cars. The deliveries of cars that were sold 23 months ago are being made now. Just imagine, nearly 450,000 cars were sold in five months. It's a significant record. If this trend continues, they talk about 1.2 to 1.3 million cars, but there aren't that many cars, and they won't be coming. However, if the current economic system remains unchanged, and if this trend continues, yes, the TV tax revenue is indeed increasing day by day. Let me give you an example. I don't have the figures for May, which is at the end of the fourth month, but at the end of the fourth month, car sales grew by around 55% to almost 60%. Meanwhile, TV tax revenue increased by over 150%, more than 90 billion liras in four months. The year-end target was 203 billion, so just imagine, you achieved more than 40% of the target in just four months. Now, considering May, I estimate it to be around 3 to 5 billion, as about 111,000 cars were sold. So, it seems that TV tax revenue will be over 30 billion when we calculate. This means a total of 120 to 125 billion TV tax revenue in five months, which is over 60% of the annual target. So, this is a significant source of revenue.

00:21:52–00:22:34: "Indeed, one of Turkey's most important needs right now is to think about it. You're collecting taxes from a product even before selling it. Is there a more convenient source model than this? If things continue like this, the market will easily exceed the target of 200-303 billion TL. It might even reach a TV tax revenue of 300 billion. However, if the system changes and Mehmet Şimşek starts implementing interest rate policies in the opposite direction, then, as I mentioned, investment purchases will decrease, and the market will return to its normal trend. When it returns to its normal trend, the record-breaking sales we saw in May, April, and March will not happen anymore. What will happen is that it will return to its normal course, and the market will decline. When the market declines, it might not reach 300 billion, but it will somehow meet the year-end target. If our target in the budget is satisfied with 200-300 billion, there won't be a problem. Ultimately, the market will continue by decreasing. The TV tax revenue will also return to its normal upward trend. But we need more resources. We are happy with these sales, so let it continue. If someone suggests changing the interest rate policy, then suddenly, an additional 100 billion liras can be generated from the automotive sector. In today's conditions, it's better to collect that amount from the automotive sector within the country instead of getting it from the Middle East or elsewhere. That's why I think there won't be a decrease in TV tax, but there might be an increase if this interest rate policy continues. If this interest rate policy changes, then I don't think there will be an increase."

00:23:37–00:24:19: "Now, I would like to focus on some questions. We've come a long way, and there are those who express their thanks and acknowledge your efforts. I appreciate them. However, if someone has a clear mind and has reached a decision, I ask you with all your experience. I have a need, and as I mentioned, a dealer offered me a financing option with a down payment of 200,000 TL. Dealers are telling me to pay upfront for the car that will arrive in three months. I was surprised and listened attentively. This person also has a need and wants to change their car. For someone who has a need and wants to buy a car, should they wait or not? How should they manage this process? What do you suggest? Will there be any changes in interest rates in July or August? We don't know yet. We have the central bank's meeting on the 22nd of this month, and we might see something there. Then there's another meeting in July. So, for someone in need, what should they do? Well, for someone in need, yes, there is a lot of talk about taking money unofficially from authorized sellers. There are many complaints about this. Some have even been caught and penalized by the ministry. But, of course, there are authorized dealers who do their job correctly."

00:25:04–00:25:45: "I don't know which ones exactly, but if someone has a need, they should contact not just one but at least 2 dealerships of the brand they have chosen. They should even ask dealerships in other cities or abroad. Because there are certainly dealerships that sell at the list price or normal prices, I know that. So, if you're in Istanbul, look outside of Istanbul. Instead of going and paying that amount upfront, it's much more reasonable to go and pick up the car. Because the new car price is cheaper than the second-hand price."

00:25:45–00:26:28: "The reason I explained to you is this: when you go to an authorized seller and don't give them money unofficially or if you can't find a vehicle, they give you a waiting list for 3 or 4 months. They say that in this inflationary environment, the price of the car will increase by a minimum of 20% after 4 months. So, they say, 'I will sell it to you now at a 20% higher price. Buy it if it suits you.' Some people buy it and wait for 4 months, but I say that people in need should definitely contact multiple dealerships, even those outside their city. All their phone numbers are available on their websites, listing all the dealerships. If they find one from there, it would be more economical to go and pick it up at the list price. Because paying 150-200,000 TL in cash, paying over the list price, we are not talking about small amounts here. There are comments, and I'm also telling those individuals, 'Yes, you are paying a lot of money to buy a car, but at least have some proof of the person you are buying from. Because, in the end, since you are paying in cash, there is no invoice or official record. So, at least take photos, videos, and audio recordings. Report it to the authorities in this way so that there is an end to this issue. Because if there is no documented proof, they say they cannot take action, as they don't have any evidence. They are not afraid because they are doing this at home. Ultimately, the fines they receive are probably covered by the money they earn from selling 30-40 cars. The fines are not that significant. If the fines were substantial, they wouldn't be able to do this. Do you remember last year when there was a condition of not selling to institutions for 6 months and 6,000 km? But that condition only applied to institutions. No dealer, no one who does this business commercially, applies that to individuals."

00:26:28–00:27:11: "Therefore, maybe such a condition can be imposed on individuals as well if these economic conditions continue and car prices keep rising. Otherwise, think about it. Let's say you've bought 34 cars, 5 cars. Now you're dealing with individuals, but what happens? It's obvious what you're doing commercially. Who buys 45 cars within a year? So, maybe they will impose a limit on you and say, 'If you don't sell within 6 months or 6,000 km, let's say, well, maybe then it can slightly curb this issue. When you bring it to institutions, does any second-hand company or car dealership buy it under their own company name? They buy it in the name of individuals from authorized sellers. So, maybe something can be done in this regard as well. But as I said, people in need should definitely do their research.

00:29:13–00:29:24 A gentleman asked Saadet Hanım the following question: Is it logical to wait for the January limit increase for car discounts on o.tv, or is it more logical to buy the available vehicle?
00:29:25–00:30:07 On o.tv, I mean, for disabled citizens, he mentioned the increase in the limit, sorry, I mean normal people, and said that last year around August, there was an increase. It has been happening around August for the past two years. But will it happen this year? I mean, cars are already coming and being sold. Now imagine you are sitting on the government side, maybe you are the Finance Minister or something, and news comes out every month that a record has been broken, 111,000 cars have been sold. The income is increasing when you enter o.tv. So, in this conjuncture, do you update the brackets or increase the discounts or not?
00:30:07–00:30:49 When do bracket updates or discounts happen? When there is a significant stock burden in the sector, when authorized dealers, distributors can't keep up with financing, when they take on a large debt burden. Because each car is an asset and has a financial value, and if you keep them in stock, you are constantly losing. So, temporary discounts or bracket updates have occurred during those times. Yes, bracket updates are necessary in Turkey because, in the end, the exchange rate and prices are constantly changing. Therefore, when the expense update made last year disappears, the cars that used to be in the 50-60-70% brackets have entered the 80% bracket with the current prices.
00:30:49–00:31:08 Long Runner probably asked why the government blocked Chinese high-volume cheap vehicles. Why did the government block Chinese high-volume cheap vehicles? Well, we also had our ball, what happened to that, we can talk about it. Now, China, Chinese electric vehicles, why were they blocked, Tolga asked. Was it because they didn't have competition, or was it to protect the domestic industry in Turkey? Why? Because China has really instilled great fear in electric vehicles worldwide. They are experiencing the same concern in Europe. And of course, since a large number of vehicles are produced in China, the cost prices are much lower. Therefore, they started introducing electric vehicles at incredibly low prices in China and Europe. So, if they came to us in this way, honestly, everything would be chaotic. Why? Because maybe we could have had electric vehicles with a range of 400-500 km for 300-400,000 liras, which was really what the Turkish people needed. But if the government did that, it would somehow undermine both the mass and the domestic industry. Yes, a large part of Turkey's automotive industry may be exporting, but today, for example, companies like Tofaş and TOGG produce for the domestic market. They are a bit protective of those. But the main purpose is to protect the industry.
00:31:50–00:32:32 Why do they want to protect the industry? Because if China's electric vehicles keep getting cheaper day by day, despite this additional tax, you will see that they will continue to come in the coming days. Maybe there were 10 Chinese brands coming in before, but now it's down to three. But in the future, the Chinese will come because they are unstoppable. They are coming to Europe too, and they are starting to produce in Europe. When they start production in Europe, they will come to us without customs duties due to the Customs Union agreement. Therefore, there won't be such a chance, but the biggest point we missed here is that I wish I could have attracted Chinese investments to Turkey instead of scaring them with this additional tax. Because currently, there are countries in Eastern Europe that are competitors to China in terms of production costs, but the production quality and cost efficiency we have in Turkey is a reason for us to compete with China. And honestly, we seem to have closed that door by imposing this 54% additional tax before Europe.
00:33:14–00:33:57 What will happen in the coming days, I don't know, but the Chinese are coming, and they are coming thunderously. I just said something about the dealers. Kemal Bey wrote something like this: many dealers don't make sales over the phone, don't even provide information. Well, they might be doing that. Because now, think about it, if you tell people to call the dealership, at least let them do something, let them buy a used car, let them pass. It's a pity, really, for these people. Yes, it's sad because those who really need a car can't find one these days, or if they find one, the prices are extremely high. I hope this absurd period will pass in the coming days, I believe.

00:33:14–00:33:57 Without customs duties, they will come, so there won't be such a chance. But the biggest point we missed here is that I wish I could have attracted Chinese investments to Turkey instead of scaring them with this additional tax. Because currently, there are countries in Eastern Europe that are competitors to China in terms of production costs, but the production quality and cost efficiency we have in Turkey is a reason for us to compete with China. And honestly, it seems like we closed that door by imposing this 54% additional tax before Europe. I don't know what will happen in the coming days.
00:33:57–00:34:41 The Chinese are coming unstoppably and thunderously, I can say that. Regarding the dealers, Kemal wrote something like this: many dealers don't make sales over the phone, they don't even provide information. Well, they might be doing that. Because now, think about it, if you tell people to call the dealership, at least let them do something, let them buy a used car, let them move on. It's a pity, really, for these people. Yes, it's sad because those who really need a car can't find one these days, or if they find one, the prices are extremely high. I hope this absurd period will pass in the coming days, I believe.
00:34:41–00:35:23 What will happen in the coming days, I don't know, but the Chinese are coming unstoppably. I just mentioned something about the dealers. Kemal wrote something like this: many dealers don't make sales over the phone, they don't even provide information. Well, they might be doing that. Because now, think about it, if you tell people to call the dealership, at least let them do something, let them buy a used car, let them move on. It's a pity, really, for these people. Yes, it's sad because those who really need a car can't find one these days, or if they find one, the prices are extremely high. I hope this absurd period will pass in the coming days, I believe.
00:35:23–00:35:36 It's difficult, you know, these days those who really need a car unfortunately can't find one or if they find one, the prices are very high. I hope this absurd period will pass in the coming days, I think.
00:35:37–00:36:19 Volkan has a question, "Hello, Saadet Hanım. Is it applicable to used cars as well? Can you clarify what you mean by the situations you described?" There is someone who openly pays money to these dealers, incredible, Emre mentioned that, let's record the footage and file a complaint, right? Yes, yes, I also recently shared a video about a significant customer experience. I'm saying that there are dealerships that do this job properly. Maybe there are more of them, but some dealers, their owners or sales consultants, have become too much. There are inspections by the ministry, it has reached a point where you can't do anything else about it. Because those who do this put all dealerships under suspicion, but I always emphasize that there are authorized dealers who do this job properly, honestly, and with integrity. You need to find them. I can't say which one is which specifically because I don't have such information about authorized dealers. But I know and hear that there are registered, honest dealers who do their job properly.

00:37:03–00:37:45 So, it is necessary to research and find these things, but it's really difficult. As an individual and a car user, the same applies to me. If I try to change my car, where will I find one? Will I be able to get the list price or not? Everyone carries these concerns, but on the other hand, when we look at it, everyone, from the grocer to the scalper, doctor, and civil servant, is involved in this business because economic conditions require it. There is no other commodity that can generate income beyond inflation, so people are attacking this market.
00:37:45–00:38:20 We shouldn't blame people too much. Authorized dealers and sales representatives are trying to take advantage of this opportunity when there is such demand. This system actually creates this situation. When we look at it, as I mentioned in my tweet at the beginning, this distorted system and chaos environment need to pass. At that point, we are all eagerly waiting to see what Mehmet Şimşek will do. We are all curious about how Tesla will affect the electric vehicle market. I wanted to quickly address that question.
00:38:20–00:38:45 Yes, of course, Tesla will increase its sales in the electric vehicle market. After all, Tesla is a brand that only produces electric cars and has become the brand that sold the most car models in the world in the first quarter. Previously, it was Toyota, but Tesla has reached the top position for the first time in the first quarter. However, the number of people who will buy Tesla cars is limited, and we are talking about a car that costs around 2 million. Considering the conditions in Turkey, the best-selling cars are in the range of 500,000-700,000. So, Tesla's customers will be in a higher segment.
00:38:47–00:39:29 Also, the rate of Tesla ownership is limited. Tesla doesn't have dealerships or authorized dealerships like other brands. You place your order online, and there are designated delivery points where you pick up your vehicles. They give you a timeframe after you place your order based on production. They say, for example, July or June, and you wait. So, if you really want a Tesla or a Taycan, you have to wait.

00:39:29–00:40:12 You have to wait; you also have to wait for other brands. However, people feel online sales are safer because they believe that other brands play different games through dealerships and distributors. But when there are no cars available, you also don't know who bought them online. Maybe the dealerships have already bought them, or someone else has bought them. So, you don't know who bought them online. Online sales are secure, of course, but when will they be secure? They are secure under normal economic conditions when people buy cars as needed. But right now, someone can buy a Tesla and immediately list it on a classifieds website for double the price.
00:40:12–00:40:57 Because they know that the next tests will come in 2 or 3 months. So, there is opportunism everywhere at the moment. But let me emphasize again, these economic conditions have created this situation. Nobody should be blamed for it. Volkan asked a relevant question earlier. We've been discussing new cars, but does the price increase also apply to used cars? We sold our car for 570,000, which is a shame. Within 2 months, it has become an 800,000 TL car. Of course, they couldn't buy a car at that price, and many people put in a lot of effort. And the price has increased. I was referring to new cars that are purchased from authorized dealerships. More than 40% of their value instantly appears on used car websites. Therefore, the prices of used cars, which are said to be higher than new ones, increase. When the price of a 2-year-old car increases by 10, what happens? The price of a 5-year-old car also increases by 10. So, it automatically affects everything. The increase in used car prices today may be even higher than that of new cars. This is because people, unable to find cars from authorized dealerships, turn to the used car market. The prices in the used car market are affected by various factors, not just new cars, such as condition and repairs.
00:41:40–00:42:22 The prices have increased. Now, if the interest rate policy changes in the future, primarily the bubble in used car prices will deflate. New car prices won't decrease, but there is an unnecessary bubble in used car prices, around 20-30% higher than new cars. That bubble will burst, and things will return to normal. When prices normalize in the used car market, new car sales will also be more demand-driven and return to normal. But as I said, we'll have to wait and see how economic policies unfold. Everything depends on that to some extent. In my opinion, in the short term, we shouldn't expect an immediate normalization. Those who want to buy a car might need to clear their minds a bit more after this livestream. But it won't happen overnight because there is still demand, and the demand is still strong. Therefore, in a place where demand is so lively, how much can the interest rate bring relief? Investors and market participants need to step back a bit more so that those in need can come forward a little bit more. That, in my opinion, seems to take us until the end of summer. So, don't expect some things to happen immediately. I at least know that you have suffered more.
00:43:04–00:43:46 Yes, I can say from an economic perspective as well. At least let them know and be assured that the prices of the cars they buy won't decrease. In Turkey, prices have never decreased once they have increased. Yes, they will increase further from now on, but that doesn't mean they will decrease. So, they shouldn't worry about that. But if the economic parameters change due to the conjuncture, then it won't be an investment anymore. The car they buy won't be a loss, but they shouldn't expect significant profits either. So, for those who are in need, it makes sense to buy a car today or tomorrow. But if you think, "I'm buying it for investment purposes, and I'll make a 50% profit by the end of the year," then that's a risk. It's a significant risk. We've experienced this risk before. Many dealerships and individuals bought cars, and then the transition to online platforms caused a discount, and suddenly, they were left with all those cars. They couldn't sell them the following year. So, they need to take this risk into account. For those in need, I believe they can find affordable options. Do thorough research, make informed decisions, because there are honest dealerships as well, not just those who buy cars under the table.

00:44:27–00:44:31 We need to talk about the abundance of dealerships selling at list prices.
00:44:32–00:45:13 You summarized it very well. I think this last part has become even clearer and has surpassed curiosity. We have reached the end of the livestream now. If you have any final remarks, please share them. So, we weren't just 45 minutes, once again. As I said, we are in a great chaos. We are already in chaos from the perspective of the automotive industry. It was a challenging period during the pandemic, but for the past year, the transformation into an investment opportunity has confused people. Everyone around them started saying, "Let's buy a car and at least make some money." They benefited the people around them. You can't come from outside and say, "Oh, this and that." Serious amounts of money were made. Huge amounts of money were made. Not just within our circle or the industry, but even within the bureaucracy, there are many people involved in car trading. Therefore, many people in Turkey have made significant money through the automotive industry. But that's not right. A car is a necessity. As I said, if someone crashes into you tomorrow, that investment disappears instantly. Can such an investment exist in the world? Ultimately, your investment is gone when your car is declared a total loss. So, they need to think twice. Along with Mehmet Şimşek, their minds have become even more confused now. Currently, everyone who bought for investment purposes or for trading purposes is rethinking because Mehmet Şimşek had such an important position in Europe and was making good money there, but he came to Turkey, and there are question marks surrounding the acceptance of all conditions. I think everyone should write this down and reconsider. If this authority was granted, would it have come? Honestly, it means the beginning of a nightmare period for those who buy cars for investment or trading purposes. I hope everything turns out well for everyone in the future, and it's good for the industry as well. Let me say this: If he received that authority and somehow Mr. Tayyip Erdoğan doesn't intervene and say, "Results with interest and inflation," I hope that doesn't happen. But it seems likely. However, I should be cautious in my words. Let's go back to the time when Naci Ağbal had that authority. Let's go back to October 2020 when Berat Albayrak was in charge of the Treasury, and Naci Ağbal was the Central Bank Governor. They started increasing interest rates and continued to do so. That was in October 2020. Then, Naci Ağbal was dismissed on March 18, 2021. Now, it's not the same period, I think, because there was an election result. Yes, I was about to mention one more thing while saying this. I was expecting something more. I think we are in the same situation, but our economy is not in a position to withstand a dismissal, especially with someone like Mehmet Şimşek. It would be devastated. Therefore, I don't think anyone would dare to do such a thing. If the authority has indeed been taken, I hope we can normalize these issues a little bit more, and we can all breathe a sigh of relief. We want the days when we can relax, even if only to some extent.
00:47:42–00:47:51 Thank you very much. I appreciate it. I wish you safe travels. Thank you again, and take care.