Car dealers in north Cyprus cries out as sales drops

In a country, where its citizens are struggling to pay their bills and buy food as the value of the Turkish Lira remains diminished, interest rates have risen and where even men’s barbers are charging in Euros, it comes as no surprise that car dealers are now facing losses.

According to report by Kibris Postasi, there was a time when vehicles were selling like hotcakes. However, both the new and used car markets have now come to a standstill as car dealerships, which used to see dozens of visitors each day, are now very quiet. 

Dealership owners, who enjoyed brisk sales before and after the pandemic, are now struggling to attract any customers.

These dealership owners reminisce about the bustling days of the past and lament that not even potential buyers come to inquire about vehicles anymore.

They point out that the economic downturn, particularly after the pandemic, has severely diminished people’s purchasing power. “We spend our days buying each other coffee“, they say.

Speaking to Kibris Postasi, car dealer Mehmet Tatar noted a marked decrease in vehicle sales since March. Although he is unsure of the exact cause, he speculated, “Generally, the market remained stable even when the foreign exchange rate soared. But now, I believe the decline in vehicle sales might be due to high interest rates”.

Too Many Dealerships

Tatar also criticised the current policy on opening car dealerships, calling it “gallery inflation“. He emphasised that anyone can now open a dealership, leading to a saturation of the market. “There are makeshift dealerships everywhere“, he said. “Some people have even turned the ground floor of their homes into car showrooms“.

Kibris Postasi