Examination of the factors affecting the prices of second hand car: An application

There are many factors affecting the price of a car. Factors such as interest rates, inflation, exchange rates, production costs, supply and demand, and fuel costs directly affect automobile prices. Sudden and sharp increases in exchange rates have caused the Turkish Lira to depreciate. Since most of the automobiles in our country are imported, there have been sharp increases in automobile prices due to the exchange rate. From this point of view, the study aims to examine the factors affecting the price of used cars. Unlike the studies in the literature, this study investigates the microfactors affecting used car prices. The study's data set consists of 6,262 used cars obtained from the sahibinden.com website. A model consisting of car brand, series, model, gear type, fuel type, mileage, engine displacement, traction type, additional equipment cost, damage amount, ownership status, additional equipment information, and price variables is developed. The study performed multiple regression, logistic regression, and difference analyses with the obtained data. According to the results of the analysis, it was found that the most influential factors on used car prices are the brand and the type of drive. It was found that the used car prices of Ford, Dacia, and Mercedes-Benz brands were higher than the zero price. Engine displacement and drive type were found to influence car prices. It was found that the ownership status of the car dealer, information about damage, and additional equipment do not affect used car prices. It was found that there is asymmetric information in the used car market in Turkey.