Revolution in the Used Car Market: Mileage and Damage Records Gain Transparency

A critical step towards enhancing market efficiency in Turkey's second-hand vehicle market has been taken; the inquiry service launched under the joint protocol of PTT AŞ and the General Directorate of Regulation of Transportation Services has set a historic usage record, eliminating information asymmetry in the vehicle buying and selling processes of millions of citizens.

Transparency Operation in the Second-Hand Market

The system, put into effect with the protocol signed in 2017, serves as a digital shield against the sector's chronic issues, particularly the reduction or resetting of vehicle mileage. Citizens can access instant data by entering the license plate or chassis number of vehicles through www.pttavm.com, HGS Mobil, PTT Bank internet banking and mobile applications, and the e-Devlet portal.

■The accuracy of mileage entered into the system during vehicle inspection can be verified.

■Detailed information regarding past damage records and inspection dates is obtained from a single screen.

■The system aims to prevent legal and financial grievances that may arise after the sale.

Massive Demand in Data

Minister of Transport and Infrastructure Abdulkadir Uraloğlu announced that interest in these inquiry services peaked in parallel with the increase in second-hand vehicle trade, especially during the summer period. According to information provided by the Minister, a total of 16 million 791 thousand 510 people have made inquiries to date. This figure serves as a significant indicator regarding the depth of the Turkey automotive market and consumers' hunger for accurate information.

Digital Infrastructure for Market Security

Minister Uraloğlu, emphasizing the ease of access to the service, stated that PTT's digital infrastructure offers users not just an inquiry tool but also a "security certificate." Preventing mileage fraud allows the second-hand values (residual value) of vehicles to be determined more realistically.

This step is one of the most concrete regulations against the "Market for Lemons" problem in the automotive market. From a portfolio manager's perspective, reducing information asymmetry is a critical factor for more accurate asset pricing. Second-hand vehicles constitute a significant portion of Turkish household asset portfolios. This inquiry mechanism can reduce the uncertainty risk in the market, thereby permanently increasing liquidity and trading volume. Market transparency is the cornerstone of long-term investor confidence, and this application supports that principle, albeit on a micro scale.