MASFED Chairman Erkoç: Insurance Regulation on Second-Hand Cars Will Harm Consumers

Forex - MASFED President Aydın Erkoç: "The expiration of the 15-day insurance period for second-hand vehicle purchases will bring an additional burden and lead to increased costs, putting consumers in a difficult position. To prevent consumer grievances due to rising costs, at least the insurance requirement for vehicles that have not been put on the road in authorized dealerships should be removed before purchase..."

According to the decision published in the Official Gazette, an insurance requirement has been imposed on second-hand vehicle transactions. With the new regulation, notaries will carry out vehicle sales and transfer procedures on the condition that the vehicle has mandatory financial liability insurance; these procedures will not be conducted without such insurance. The Turkish Insurance Union (TSB) announced that the 15-day traffic insurance period for second-hand vehicle purchases will end on December 5, 2024, making it mandatory for second-hand vehicle buyers to obtain valid financial liability insurance in their name before the sale is completed.

In a statement regarding the matter, MASFED President Aydın Erkoç said: "According to the regulation, the buyer will be obliged to have traffic insurance as of the transfer date. This regulation will bring an additional burden to citizens who want to own a vehicle."

Erkoç provided the following information about the issue: "Our citizens who want to own a vehicle are already facing difficult conditions. In a period where difficulties in accessing credit, appraisal, notary, insurance, and other costs put a strain on their means, such an application will increase expense items, adding to vehicle prices and making it harder for citizens. While insurance requirements are certainly important, eliminating the 15-day period will create different problems. Even vehicles displayed in showrooms by authorized motor vehicle sellers are now required to have insurance. For these vehicles, which are not on the road, insurance costs starting from 20,000 TL are requested for each vehicle. This will lead to a significant increase in costs for sold vehicles.

We can implement measures to eliminate these issues. For example, sellers with a license can be exempted from this requirement. A comprehensive solution through professional liability insurance could be established. At the very least, preventing the rise in costs would help keep vehicle prices stable, allowing consumers to make their purchases without difficulties. Citizens who fulfill the insurance requirement after the sale will not be burdened with additional costs."