Dealers are preparing to take automotive regulation to court

MASFED Chairman Aydın Erkoç stated that the regulation that introduces a sales limitation of 6 months and 6 thousand km after the initial registration of new vehicles is against the Constitution and that they will take the regulation to the Council of State. MASFED Chairman Aydın Erkoç stated that they will file a lawsuit on the grounds that the regulation that introduces a sales limitation of 6 months and 6 thousand km after the initial registration of new vehicles is against Article 49 of the Constitution and made statements on the issue. Erkoç claimed that the regulation will not have any effect on the solution of the existing problems and criticized that the opinions of the sector on the issue were not consulted and that 70 thousand motor vehicle dealers were ignored and that they will apply to the Council of State regarding the regulation. Noting that there are 70 thousand registered motor vehicle dealers in Turkey, Erkoç said, “We will apply to the Council of State regarding this regulation that contradicts Article 49 of the Constitution and was made without consulting the opinions of the sector. As we have said repeatedly, automobile dealers cannot sell unused vehicles to motor vehicle dealers; they are prohibited from issuing invoices. We condemn this decision that was taken by ignoring 70 thousand registered businesses, the employees in these businesses, and their families. An attempt is being made to present motor vehicle dealers who pay their taxes to the state, employ personnel, and are after their bread as the scapegoats for the current problems; this is incompatible with both the law and conscience. We all know the problems experienced and the reasons for the increase in prices.'' "The regulation change does not cover individuals" Erkoç also emphasized the statements made by Minister of Treasury and Finance Nurettin Nebati the day before and provided the following information: "There are serious problems in the sector. The other day, our Minister Nurettin Nebati announced that 100 thousand taxpayers who disrupt the supply-demand balance and cause the formation of an informal economy have been caught on the radar. As tradesmen who have an authorization certificate, pay their taxes to the state, and try to properly practice their profession within an institutional framework, we have been fighting against this by reminding that people who are not registered, who buy and sell vehicles using under-the-counter methods without paying taxes, are disrupting the market balance for years. The regulation change does not cover individuals. With this new regulation, questions such as how these people can be prevented are also before us. In addition, motor vehicle dealers who are trying to combat sector problems and do their job within an ethical framework are being declared scapegoats. However, motor vehicle dealers who cannot currently buy vehicles from dealers are completely outside of this issue. Measures should be taken for those who work off the record and make buying and selling vehicles a business. A total of 9 million vehicles are sold in Turkey annually, approximately 750 thousand of which are new and 8 million 250 thousand are second-hand. Today, only 1 in 5 of the new and second-hand vehicle sales made throughout the country are carried out by dealers and authorized motor vehicle dealers. The remaining four-fifths are carried out by these people who work off the record, have nothing to do with this business and cause prices to increase. These need to be identified by the Ministry of Finance and the Ministry of Trade and the informality needs to be prevented. In addition, there are notifications and some questions sent to our Federation. "The Ministry should establish a reporting line" Our Ministry should establish a reporting line for issues such as whether consumers have paid extra money when purchasing a new vehicle, whether money has been received in cash other than the invoice, whether conditions such as a 2-year insurance obligation or half-price purchase in trade-in have been developed. Our citizens who are victimized in these matters can also reach the Ministry through this line, and their victimizations can be resolved. These issues should be examined. '' Stating that permanent and radical solutions are needed for prices to fall and the market to reach balance, Erkoç said, ''There are many factors waiting for solutions such as production, exchange rate, consumers having difficulty accessing financing, and high interest rates and taxes. Regarding the new regulation, individuals who are not included in the scope of the regulation, unregistered people will continue to buy and sell vehicles, authorized dealers and our Ministry should find a solution for this situation so that the inflation in prices can be prevented. In addition, our Ministry should also get the opinion of our sector and we, as second-hand motor vehicle dealers, will contribute to the process of overcoming these problems together.''