Marketing and Sales of Used (Registered) or Unregistered Motor Vehicles
The “Regulation on the Trade of Motor Land Vehicles” (the “Regulation” for short), which regulates the procedures and principles regarding the marketing and sales of registered or unregistered motor land vehicles carried out directly or through intermediaries, was published in the Official Gazette dated August 27, 2024, and numbered 32645. In the implementation of the Regulation, motor vehicles are motorcycles, automobiles, off-road vehicles, buses, vans, trucks and rubber-tired tractors as defined in Article 3 of the Highway Traffic Law dated 13/10/1983 and numbered 2918 (Regulation. 4/1,j), Second-hand motor land vehicle trade refers to the whole of the activities related to the marketing and sale of registered motor land vehicles carried out directly or through intermediary (Regulation. 4/1,e), Unregistered motor land vehicle trade refers to the whole of the activities related to the marketing and sale of unregistered motor land vehicles carried out directly or through intermediary (Regulation. 4/1,n). With this Regulation, the Regulation on the Trade of Secondhand Motor Land Vehicles published in the Official Gazette dated 13/2/2018 and numbered 30331 has been repealed. References made in other legislation to the Regulation on the Trade of Second-Hand Motor Land Vehicles shall be deemed to have been made to this Regulation (Regulation. 32). As stated below, the Regulation 12th regarding the obligations of authorized dealers (real or legal persons engaged in the retail trade of unregistered motor land vehicles within the scope of the contract established between them and the manufacturer or distributor), 13th regarding the order sales of authorized dealers (sales in which the buyer undertakes to pay part of the sales price of the unregistered motor land vehicle in advance and the seller undertakes to transfer and deliver the vehicle to the buyer after the partial or full payment of the price), 13th regarding those who import vehicles other than distributors, Article 14 on the provisions to be subject to in case of sales to authorized dealers and other real or legal persons, Article 23 on the obligations of auction platforms and Article 24 on the obligations of real or legal persons who perform preliminary valuation of second hand motor vehicles in electronic environment shall enter into force on 1/1/2025, Article 26 on the payment system shall enter into force on August 27, 2024, the date of publication for enterprises, one month after the date of publication for other real or legal persons, and the other articles shall enter into force on August 27, 2024, the date of publication.
I. SCOPE OF THE REGULATION ON THE TRADE OF MOTOR VEHICLES
Regulation;
- Motor vehicle trade activities of real or legal person merchants and tradesmen and artisans,
- Obligations of real or legal persons engaged in the motor vehicle trade,
- Procedures and principles regarding the issuance, renewal and cancellation of the second-hand motor land vehicle trade authorization certificate,
- Procedures and principles regarding the establishment and operation of the Information System and Payment System and the use of the payment system by real and legal persons in the sale of second-hand motor vehicles and the issuance of appraisal reports,
- Principles, rules and obligations regarding the tender, announcement and preliminary valuation of motor vehicles,
- Requirements for collective workplace and vehicle markets,
- Duties, authorities and responsibilities of the Ministry, competent authorities and other relevant institutions and organizations regarding motor vehicle trade
(Regulation. 2/1).
II. SALES OF MOTOR VEHICLES OUTSIDE THE SCOPE OF THE REGULATION
A. Secondhand Motor Vehicle Sales
The following sales of second-hand motor vehicles are excluded from the scope of this Regulation (Regulation. 2/2):
a) Sales between businesses (trade companies, commercial enterprises, tradesmen and craftsmen enterprises and their branches engaged in second-hand motor land vehicle trade).
b) Sales of vehicles registered for at least six months on behalf of real or legal persons engaged in motor vehicle leasing activities by these real or legal persons.
c) Sales made by administrations, institutions and organizations subject to the Vehicle Law dated 5/1/1961 and numbered 237, and professional organizations in the nature of public institutions.
ç) Sales made within the scope of the Customs Law dated 27/10/1999 and numbered 4458 and the Anti-Smuggling Law dated 21/3/2007 and numbered 5607.
d) Sales made by enforcement directorates, creditor public administrations, national real estate directorates, collection offices, civil court of peace sales or probate liquidation offices, credit institutions defined in the Banking Law dated 19/10/2005 and numbered 5411, and other authorized public institutions and organizations due to reasons such as seizure, confiscation, seizure, found, ban from traffic.
e) The sale of motor vehicles subject to the financial leasing agreement by the lessor to the lessee within the scope of the Financial Leasing, Factoring, Financing and Savings Financing Companies Law dated 21/11/2012 and numbered 6361.
B. Unregistered Motor Vehicle Sales
Sales of unregistered motor vehicles between authorized dealers are outside the scope of the Regulation (Regulation. 2/3).
III. CONDITIONS FOR THE ISSUANCE, RENEWAL AND CANCELLATION OF THE AUTHORIZATION CERTIFICATE ISSUED IN THE NAME OF THE ENTERPRISE IN ORDER TO ENGAGE IN THE TRADE OF SECONDHAND MOTOR VEHICLES
Marketing or sale of second-hand motor vehicles within the scope of commercial activity cannot be carried out without an authorization certificate. In the event that more than three second-hand motor vehicles are sold directly or through intermediary in a calendar year, each sale shall be considered a commercial activity unless otherwise determined by the Ministry. The authorization certificate shall be issued, renewed and canceled through the Information System by the Provincial Directorate of Commerce where the business is located. The authorization certificate shall include, at a minimum, the MERSIS (Central Registry Registration System) number, the business name and address registered in MERSIS and the trade name or the business name and address registered in ESBIS (Tradesmen and Craftsmen Information System) and the name, surname and Turkish ID number or foreign ID number of the business owner. The authorization certificate is issued separately for each enterprise and cannot be transferred (Regulation. 5).
A. Conditions for the Issuance of Authorization Certificate
In order for an authorization certificate to be issued to the enterprise;
a) Be an income or corporate taxpayer,
b) Being registered in the professional chamber,
c) The existence of second-hand motor vehicle trade among the fields of activity in the professional chamber and tax records,
ç) The trading officer applying for an authorization certificate
1) Has completed the age of eighteen,
2) At least a high school graduate,
3) He/she is not bankrupt or even if he/she is bankrupt, his/her reputation has been restored according to the provisions of the Execution and Bankruptcy Law dated 9/6/1932 and numbered 2004,
4) No one has been sentenced to more than five years of imprisonment for crimes committed deliberately or has been convicted of crimes against the security of the state, the constitutional order and the functioning of this order, crimes against national defense and state secrets and espionage, embezzlement, extortion, bribery, theft, fraud, forgery, abuse of trust, fraudulent bankruptcy, not have been convicted of bid rigging, bid rigging, laundering the proceeds of crime, financing of terrorism, smuggling, tax evasion or wrongful acquisition of property, torture, sexual assault and sexual abuse of children, or have not been banned from practicing trade and art,
5) Level 5 (responsible for the purchase and sale of motor vehicles: Real person merchants and tradesmen and craftsmen engaged in the trade of second-hand motor vehicles, trade companies and other legal person merchants and authorized representatives carrying out these activities in branches) must have a vocational qualification certificate (Regulation.6/1).
Vocational training is provided by the Ministry of Trade or institutions and organizations deemed appropriate by the Ministry (Regulation.6/2).
B. Issuance of the Authorization Certificate
The application for authorization certificate is made through the Information System together with the documents showing that the conditions required for the issuance of the authorization certificate are met. Documents that can be provided by the provincial directorate from the electronic information systems of the relevant institutions and organizations are obtained from these systems and kept together with other application documents in the file created electronically on behalf of the enterprise. An authorization certificate is issued within ten days from the date of application to the enterprises that are found to meet the conditions required for the issuance of an authorization certificate. Reasons for rejection of the application for authorization certificate shall be included in the Information System in a manner accessible by the applicant enterprise (Regulation.7).
C. Renewal of Authorization Certificate
The authorization certificate shall be renewed in the event of a change in the MERSIS number, business name and address registered in MERSIS and trade name or business name and address registered in ESBIS and name, surname and Turkish ID number or foreign ID number of the business owner. The renewal application shall be made through the Information System within thirty days from the date of the change (Regulation.8).
D. Revocation of Authorization Certificate
Authorization certificate;
a) Upon the application to be made through the Information System within ten days from the date of this situation by the enterprise that has lost any of the conditions required for the issuance of the authorization certificate,
b) In the event that it is determined by the Ministry that it does not have any of the conditions required for the issuance of an authorization certificate,
c) Failure to apply for renewal within ten days despite the warning made by the Ministry through the Information System or in writing due to failure to apply for renewal through the Information System within thirty days from the date of the change,
ç) Despite the warning made by the Ministry through the Information System or in writing to the enterprise acting contrary to the provisions of this Regulation;
1) If the violation is not eliminated within the given period,
2) If the violation is repeated within the same calendar year,
d) The authorization certificate shall be revoked in the event that the enterprise, which is also engaged in the trade of unregistered motor vehicles, engages in activities that make it difficult to access unregistered motor vehicles such as avoiding sales, demanding prices above the sales price recommended by the manufacturer or distributor of the vehicle, forcing the consumer to buy accessories or make a barter, or determining the barter price significantly below the market price.
The grounds for revocation of the authorization certificate shall be included in the Information System in a manner accessible by the business whose authorization certificate is revoked. An authorization certificate shall not be issued to the enterprise whose authorization certificate has been revoked pursuant to subparagraphs (ç) and (d) above and other enterprises owned or represented by the owner of the enterprise and those authorized to represent the enterprise for a period of one year from the date of revocation (Regulation.9).
E. Occupational Qualification Certificate Required for Personnel Employed by Businesses with Authorization Certificate
Motor land vehicles trading managers must have Level 5 and motor land vehicles trading consultants must have Level 4 vocational qualification certificate. In the event that motor land vehicles trading officers graduate from higher education institutions; motor land vehicles trading consultants graduate from the fields related to motor land vehicle trade of secondary and higher education institutions or from educational institutions abroad whose equivalence is accepted, the requirement for a vocational qualification certificate is not required. The fields related to motor vehicle trade that provide exemption from the requirement of professional qualification certificate shall be determined by the Ministry. The Ministry is authorized to determine the minimum number of personnel with a vocational qualification certificate that must be employed by enterprises holding an authorization certificate and the elective units that constitute the structure of the national qualification and must be included in the vocational qualification certificate held by the personnel (Regulation.10).
IV. OBLIGATIONS OF THOSE ENGAGED IN THE MOTOR VEHICLE TRADE
A. Obligations of Distributors
1. Not to engage in unfair commercial practices. The activities of distributors (real or legal person authorized to distribute and sell motor vehicles of the relevant vehicle brand in Turkey within the scope of the contract with the motor vehicle manufacturer) that significantly disrupt the commercial activities of authorized dealers, reduce their ability to make reasonable decisions or cause them to be a party to a commercial relationship to which they would not normally be a party are unfair commercial practices. The following activities of distributors are considered unfair commercial practices in all cases:
a) Forcing the authorized dealer to purchase more vehicles in a month than the monthly average of the last three years’ sales.
b) Increasing the price of the vehicle after the invoice date or not delivering the vehicle to the authorized dealer within fifteen days.
c) Making the sale of a vehicle conditional on the purchase of goods or services of itself or another person.
ç) Making the authorized dealer’s benefit from campaigns related to vehicle sales conditional on the sale of other products and services, price reduction, restriction of the authorized dealer’s profit margin and vehicle sales quota.
2. Ensure that the recommended vehicle sales price is accessible electronically (Regulation 11).
Those who import vehicles other than distributors are subject to the above provisions in case they sell to authorized dealers (Regulation. 14, This provision will enter into force on 1/1/2025).
B. Obligations of Authorized Dealers (Effective 1/1/2025)
Authorized dealers are obliged to comply with the following points in the marketing and sale of unregistered motor vehicles
a) Not to increase the sales price of the unregistered motor land vehicle from the moment the buyer pays the taxes on the unregistered motor land vehicle and to inform the buyer of his right to fix the price of the vehicle.
b) deliver the vehicle to the buyer within fifteen days from the date the buyer pays the taxes.
c) Not to engage in commercial activities other than insurance, financing, accessories, spare parts sales, service and after-sales services at the workplace engaged in motor land vehicle trade (Regulation 12).
Those who import vehicles other than distributors are subject to the above provisions if they sell to real or legal persons (Regulation. 14, This provision will enter into force on 1/1/2025).
C. Obligations of Authorized Dealers Regarding Sales Made to Order (Effective 1/1/2025)
1. In order method sales where the buyer undertakes to pay part of the sale price of the unregistered motor land vehicle in advance and the seller undertakes to transfer and deliver the vehicle to the buyer after partial or full payment of the price, an order form is issued in writing or electronically and delivered to the buyer on the same day. No payment or document that puts the buyer under debt can be received from the buyer without the issuance of this form.
2. The ordered vehicle must be delivered to the buyer within the period specified in the form, which shall not be more than forty-five days. This period shall be calculated on the basis of the date on which the form is issued, or the partial payment is made, whichever is earlier.
3. Until the vehicle can be delivered to the buyer within seven days, a partial payment of maximum ten percent of the final sales price or a document that puts the buyer under debt may be received from the buyer.
4. The buyer may cancel the order within fourteen days from the date of issuance of the order form without giving any reason and without penalty. It is sufficient if the notice of cancellation of the order is addressed to the seller within this period. This provision does not apply to customized orders with features not included in the existing equipment list and vehicles with special equipment.
5. The authorized dealer is obliged to inform the buyer in writing of the cancellation of the order. The burden of proof that the information has been given shall be on the authorized dealer.
6. In case of cancellation of the order, all payments made by the buyer and any documents that put the buyer under debt shall be returned within ten days from the date of receipt of the cancellation notice by the authorized dealer (Regulation 13).
Those who import vehicles, other than distributors, are subject to the above provisions if they sell to real or legal persons (Regulation. 14, This provision will enter into force on 1/1/2025).
D. Obligations of Businesses
Businesses are obliged to comply with the following (Regulation. 15):
a) Except in cases where a certificate of professional competence is not required, not to employ persons who do not have a certificate of professional competence as a motor vehicle purchase and sale officer or consultant.
b) To declare the authorization certificate number to the appraisal company during the preparation of the appraisal report and to the notary public during the sale.
c) To submit a copy of the appraisal report to the notary public during the sale.
ç) Not to engage in marketing and brokerage activities regarding the second-hand motor vehicles that they are not authorized to sell.
d) Not to use areas reserved for public use such as roads and sidewalks as vehicle display areas.
e) Without prejudice to the provisions of the Regulation on Workplace Opening and Operation Licenses put into force by the Council of Ministers Decision dated 14/7/2005 and numbered 2005/9207, no other commercial activity can be carried out in the workplace engaged in the second-hand motor land vehicle trade and this workplace cannot be used for residence purposes.
E. Vehicle Classes Obliged to Obtain an Expert Report, Information to be Included in the Expert Report, Obligations and Responsibilities of Expert Report Issuers
Except for the enterprises operating in provinces where there are no expertise enterprises with TSE service qualification certificate, an expertise report shall be obtained by the enterprise within ten days before the sale of vehicles with vehicle class M1, M1G, N1 and N1G in the registration certificate. The appraisal report fee shall be paid by the buyer in case the sale transaction is not realized due to a reason arising from the buyer, and by the enterprise in other cases.
The appraisal report shall be issued by appraisal companies holding a TSE service qualification certificate issued according to the relevant standard. Two copies of the report issued in triplicate shall be given to the seller enterprise. The report shall be kept by the seller and the expertise company for at least five years.
It is not compulsory to obtain an expertise report for vehicles over eight years old or over one hundred and sixty thousand kilometers according to the model year.
The following issues shall be included in the expertise report:
a) The brand, trade name, type, type, model year and mileage of the vehicle.
b) The service qualification certificate and MERSIS numbers of the commercial enterprise issuing the appraisal report and the trade name and business name registered in MERSIS or the service qualification certificate number of the tradesmen and craftsmen enterprise issuing the appraisal report and the business name registered in ESBIS and the name, surname and Turkish ID number or foreign ID number of the business owner.
c) The authorization certificate number and MERSIS number of the enterprise receiving the expertise report, the trade name and business name registered in MERSIS or the business name registered in ESBIS, the name, surname and Turkish ID number or foreign ID number of the business owner.
ç) In the event that the enterprise receiving the expertise report does not have an authorization certificate, the fact that it does not have an authorization certificate.
d) Other issues determined by the relevant standard of TSE.
The appraisal company is responsible for the fact that the information in the appraisal report does not reflect the actual condition of the vehicle. The service qualification certificate of the appraisal company that issues an appraisal report contrary to the actual condition of the vehicle and repeats this contradiction within the same calendar year despite the warning made by the Ministry shall be canceled by TSE within ten days from the date of notification by the Ministry. No authorization certificate shall be issued for one year from the date of revocation to the appraisal enterprise whose service qualification certificate is revoked and other appraisal enterprises owned or represented by the owner of the appraisal enterprise and those authorized to represent the enterprise. With regard to deceptive and misleading expertise reports, the rights of consumers regarding defective service under the Law on the Protection of Consumers dated 7/11/2013 and numbered 6502 are reserved (Regulation. 16).
F. Warranty in Second Hand Motor Land Vehicle Trade
1. Warranty Period or Mileage
The engine and transmission, electrical and electronic systems of vehicles under eight years of age or under one hundred and sixty thousand kilometres according to the model year and whose vehicle class is M1, M1G, N1 and N1G in the registration certificate are under the warranty of the company for three months or five thousand kilometres from the date of sale. In the sales of second-hand motor vehicles refurbished by the manufacturer, the warranty is one year or twenty thousand kilometres from the date of sale. The enterprise may cover the issues covered by the warranty by taking out insurance.
Defects occurring in the engine and transmission, electrical and electronic system parts within the warranty period or mileage shall be repaired within a maximum of forty-five working days. In determining this period, the date on which the vehicle owner delivered the defective vehicle to the enterprise or the date of notification made to the enterprise by the Provincial Directorate of Trade upon written application to the relevant Provincial Directorate of Trade shall be taken into consideration. A copy of the sales contract and documents related to the malfunction shall be attached to the application made to the Provincial Directorate of Trade. The costs related to the elimination of the malfunction belong to the enterprise.
If the vehicle that breaks down within the warranty period or mileage is delivered to the enterprise or to the repair point to be determined by the enterprise, the enterprise shall issue a duplicate document stating that the defective vehicle has been received and one copy shall be delivered to the vehicle owner. At least the following information is included in this document:
a) Name, surname and signature of the person delivering the vehicle.
b) Name, surname and signature of the person receiving the vehicle.
c) Complaints and requests regarding the vehicle.
ç) The make, trade name, type, type and model year of the vehicle.
d) Date of failure notification and delivery of the vehicle to the company.
In the event of failure of the engine and transmission, electrical and electronic system parts within the warranty period, the period during which the vehicle cannot be used due to failure shall be added to the warranty period.
Businesses may give additional guarantees to those mentioned in the first paragraph.
Within the scope of Article 56 of the Law No. 6502, these issues shall not apply to vehicles for which the manufacturer or importer warranty continues. The Ministry is authorised to determine other types of second-hand motor vehicles covered by the warranty and other procedures and principles regarding the warranty. In second-hand motorised land vehicle sales, the rights of consumers regarding defective goods and services of the Law No. 6502 are reserved (Regulation. 17).
2. Issues Not Covered by the Warranty
The following parts, conditions, operations, and faults are excluded from the warranty in the sale of second-hand motor vehicles:
a) Vehicles that are more than eight years old or have traveled over one hundred sixty thousand kilometers according to their model year.
b) Faults and damages known to the buyer at the time of sale and documented by the business. c) Faults and damages specified in the expert report.
d) Wear and tear on parts such as belts, exhausts, shock absorbers, clutches, front gear assemblies, brake pads and shoes, discs, gaskets, etc., due to normal use of the vehicle.
e) Unless damaged or lost as a direct result of a fault in a part covered by the warranty: spark plugs, catalytic converters, air filters, oil filters, fuel filters, windshield wiper blades, materials used to fill the air conditioning circuit, added oils, coolant, brake fluid, and other additives.
f) Unless damaged or lost as a direct result of a fault in a part covered by the warranty, expenses related to routine maintenance of the bodywork and cabin, including the cleaning and repair of seat accessories.
g) Bodywork, trims, mats, tires, rims, batteries, headlights, parking lights, and damage or cracks in glass and headlights.
h) Regular preventive operations, inspections, and adjustments, whether or not they involve part replacement.
i) Faults caused by continuing to use the vehicle after the warning lights indicate a system fault or by knowingly or unknowingly using inappropriate fuel.
j) Parts damaged or lost due to misuse, accidents, theft, attempted theft, fire, explosion, vandalism, or natural disasters.
k) Faults caused by negligence, improper use of the vehicle, or the freezing of fluids necessary for the proper functioning of the vehicle.
l) Faults arising from failure to perform maintenance operations in accordance with the inspection and maintenance schedule.
m) Damage and faults caused by any additions made to the vehicle after the sale.
n) Vehicles marked as “withdrawn from traffic and registration closed” in the registration document.
The detection of misuse will be governed by Article 11 of the Warranty Certificate Regulation published in the Official Gazette dated June 13, 2014, No. 29029 (Regulation 18).
G. Issuance of a Vehicle Delivery Document for Second-Hand Motor Vehicles Delivered to a Business for Sale
A vehicle delivery document is drawn up in at least two copies, with one copy retained by each party, between the person to whom the second-hand motor vehicle is registered and the business, and the business must keep this document for at least five years. The vehicle delivery document must include at least the following information:
a) The names and surnames or trade names and business names of the parties, along with identification and contact information.
b) The registration certificate and mileage of the second-hand motor vehicle, as well as information on painted and replaced parts.
c) Fault and damage information related to the vehicle as declared by the person to whom the second-hand motor vehicle is registered, as well as other information such as safety features, interior equipment, exterior equipment, and multimedia features.
d) The amount of the fee to be paid to the business for brokerage services or the percentage of the sales price.
e) The period during which the second-hand motor vehicle will remain in the business.
f) The addresses for notification and signatures of the parties.
g) Information on liens or attachments on the vehicle.
The business is responsible for any faults and damages that occur to the second-hand motor vehicle during the period it remains in the business (Regulation 19).
H. The Requirement to Have an Easily Visible and Readable Promotional Card Containing Current Information About the Vehicle on Second-Hand Motor Vehicles Offered for Sale
The promotional card must include at least the following information about the second-hand motor vehicle, along with the authorization certificate number (Regulation 20):
a) The brand, trade name, type, model year, and information on equipment and accessories.
b) The last 6 digits of the chassis number.
c) The license plate number.
d) The type of fuel used.
e) The mileage.
f) The sales price.
g) Painted and replaced parts.
h) Damage record, specifying its nature.
i) Information on whether there are any liens or attachments on the vehicle.
j) The remaining warranty period and mileage for vehicles still under the manufacturer’s or importer’s warranty according to Article 56 of Law No. 6502.
V. Obligations Related to Electronic Activities
A. Obligations of Businesses Regarding Advertisements
Businesses are required to comply with the following when placing advertisements (Regulation 21):
a) To include the authorization certificate number and the business name or trade name in the authorization certificate, and to provide up-to-date information on the promotional card and basic information about the second-hand motor vehicle.
b) Not to include misleading information or documents that may mislead third parties.
c) To immediately terminate the advertisement activities when the second-hand motor vehicle is sold, the vehicle delivery document expires, or the authorization to place advertisements ends.
B. Obligations of Advertisement Platforms
Platforms providing electronic media for the marketing and sale of motor vehicles belonging to others are required to comply with the following (Regulation 22):
a) To verify the authorization certificate through the Information System before registering or renewing the membership of businesses and to refuse membership or registration for businesses without an authorization certificate.
b) To verify the name, surname, and Turkish ID number or foreign ID number, and phone number for natural persons, and the trade name and phone number for legal entities before membership or publication of the advertisement. To check the accuracy of this information at least once a calendar year, to ensure it is updated, and to retain this information for five years. c) To ensure that the full name and surname of the person placing the advertisement, or the initials of their name and surname, or the registered business name, and for legal entities, the registered trade name and, if any, business name, are displayed.
d) To verify through the Ministry’s electronic systems before the advertisement is published whether the vehicle subject to the advertisement belongs to the person placing the advertisement or is owned by their first- or second-degree relatives or spouse, or whether the person placing the advertisement has been authorized by the owner of the vehicle subject to the advertisement.
e) To provide a means of communication with customer service via at least one internet-based communication method and by telephone for complaints and requests related to advertisements. To ensure that these complaints and requests are managed effectively and resolved.
f) To take measures to prevent market-distorting or misleading advertisements.
C. Obligations of Auction Platforms
Auction platforms are required to comply with the following (Regulation 23):
a) To take necessary measures to ensure that auctions are conducted transparently, securely, and in a competitive environment.
b) To announce the auction on the auction platform at least two hours before the auction date, and to include at least the following information and documents in the announcements:
- The start and end date of the auction, and the auction method and rules.
- Detailed visuals, brand, trade name, type, model year, chassis and license plate numbers, fuel, transmission, equipment, body, mileage, and color information, painted and replaced parts information, and the seller’s declaration on whether there are any restrictions or records that may prevent the sale and/or transfer of the vehicle.
- Except for cases where the buyer is a business, an expert report prepared within ten days before the auction in accordance with the provisions of the regulation (Regulation 16) mentioned above.
- The starting price set for each vehicle subject to the auction.
- Any other information and documents deemed necessary by the Ministry.
c) To enter into a membership agreement with the seller and buyer, clearly outlining the auction conditions, in writing or electronically. To assign a unique member number for each member and to ensure that only members can participate in the auction as buyers or sellers.
d) To retain for five years from the date of the auction the name, surname, Turkish ID number or foreign ID number, trade name, tax ID number, MERSIS number, the timing and amount of bids, IP addresses of bidders, member numbers, and contact details of the participants.
e) To ensure that the total number of participants in the auction and the participant number assigned for each auction are visible to all participants until the auction is finalized.
f) To provide a means of communication with customer service via at least one internet-based communication method and by telephone for complaints and requests related to advertisements and to ensure that these complaints and requests are managed effectively and resolved. Neither the seller of the vehicle subject to the auction nor the auction platform can directly or indirectly participate in the auction as a buyer or place a bid.
If a reserve price system is used, the auction platform:
a) Must record the reserve price before the auction and prevent it from increasing during the auction.
b) Must display an easily visible or readable visual or statement indicating that the vehicle is ready for sale once the reserve price has been reached.
In auctions where price bids are submitted over a specific time period, the auction is finalized with the highest bid submitted at the end of the auction; or if the seller accepts the final bid below the reserve price in auctions using a reserve price system or if the final bid exceeds the reserve price at the end of the auction. The auction cannot be subject to the platform’s decision or approval. Except in cases that benefit the buyer or if the buyer fails to pay the sales price within the period specified in the contract, the sale cannot be withdrawn from a finalized auction. In the event of an auction cancellation, the auction platform must inform members of the cancellation reason through the platform.
These provisions also apply to auctions conducted between businesses or real or legal persons.
D. Obligations Regarding Preliminary Valuation
Individuals or legal entities conducting preliminary valuations of used motor vehicles in electronic environments must at a minimum consider the vehicle’s brand, commercial name, type, body, fuel, transmission, equipment, accessories, mileage, and color as declared by the seller, as well as information about any malfunctions, paint jobs, and replaced parts.
A final offer must be provided on the same day for vehicles that have been given a price offer following a preliminary valuation and whose physical inspection is completed. The seller is informed during the preliminary valuation phase if a final offer will not be made. Apart from these situations, providing a final offer is mandatory.
For vehicles less than eight years old and with mileage under one hundred sixty thousand kilometers, the difference between the price offer given as a result of the preliminary valuation and the final offer cannot exceed five percent. The cost of addressing any additional malfunctions and defects identified during the physical inspection can be added to this difference. The Ministry is authorized to increase or decrease the percentage specified in this paragraph by up to two times or down to zero.
The opening price determined as a result of the physical inspection is also considered the final offer. If a price offer is made by specifying lower and upper limits as a result of the preliminary valuation, the five percent difference specified in the second paragraph is calculated over the upper limit. The price offer given as a result of the preliminary valuation is valid for at least twenty-four hours (Regulation Article 24).
VI. PAYMENT SYSTEM (Effective Date: August 27, 2024, for Enterprises; One Month After the Publication Date for Other Natural or Legal Persons)
When part or all of the payment in used motor vehicle sales by enterprises and other natural or legal persons is made in cash, transfer, electronic funds transfer, or other payment methods determined by the Ministry, the vehicle sales price is paid through an electronic system established to ensure the simultaneous transfer of vehicle ownership and the sales price by an institution authorized by the Ministry.
If part or all of the vehicle sales price is financed by credit institutions defined in Law No. 5411 or by financing and savings finance companies defined in Law No. 6361, the electronic system is used for payments other than the credit amount. Expenses related to the use of the electronic system are deducted from the vehicle sales price transferred to the seller. The Ministry is authorized to determine the procedures and principles regarding the establishment and operation of the infrastructure necessary for the electronic system specified in the first paragraph, as well as the upper limits of fees to be charged for services provided, taking into account the opinion of the Union of Turkish Public Notaries (Regulation Article 26).
VII. OBLIGATIONS OF THE UNION OF TURKISH PUBLIC NOTARIES AND NOTARIES
In the purchase and sale of secondhand motor vehicles, notaries check the authority certificate information from the Ministry’s electronic systems; if an appraisal report is submitted, they verify the service qualification certificate information of the appraisal company from TSE’s electronic systems.
The secondhand motor vehicle sales contract must include at a minimum the following information, which is transmitted to the Information System by the Union of Turkish Public Notaries in accordance with the Ministry’s requirements:
a) The first registration date of the vehicle, brand, commercial name, type, model year, chassis and license plate numbers.
b) The date, hour, and minute information when the vehicle sale took place.
c) The name, surname, and Turkish Republic identity number or foreign identity number of the buyer and seller, or trade name and tax number, along with contact information.
d) The authorization certificate number of the business and, if any, the buyer, or the absence of an authorization certificate.
e) Whether the service qualification certificate was valid on the date the appraisal report was issued.
f) The date and number of the appraisal report, TSE service qualification certificate number, and mileage information in the appraisal report.
g) In cases where no appraisal report is submitted, a statement that the report was not provided, and the mileage of the vehicle at the time of sale, as declared by both buyer and seller.
ğ) The names, surnames, Turkish Republic identity numbers or foreign identity numbers, and contact information of the persons conducting the purchase and sale transaction at the notary, in cases of transactions carried out by proxy.
h) Other information deemed necessary by the Ministry (Regulation Article 27).
VIII. INSPECTION AND PENAL PROVISIONS
The Ministry is authorized to take any measures and conduct inspections to implement this Regulation to develop motor vehicle trading and protect consumers. The Ministry may also use its inspection authority through provincial directorates.
Authorized administrations are tasked with conducting preliminary inspections upon the Ministry’s request under this Regulation. The results of these inspections are reported to the provincial directorate within fifteen days from the date the inspection is concluded.
Municipalities are responsible and authorized to conduct inspections in second-hand motor vehicle markets operated by professional organizations with public institution status or private legal entities to which they have delegated their authority.
The Ministry may delegate the authority to impose administrative fines to provincial directorates.
Administrative fines specified in Article 12, paragraph one, subparagraph (d) of Law No. 6563 on the Regulation of Electronic Commerce (ranging from ten thousand to one hundred thousand Turkish Lira for each violation of secondary regulations issued by the Ministry), apply to those who violate the obligations of advertisement platforms (Regulation Article 22). Administrative fines foreseen in Article 18 of Law No. 6585 on the Regulation of Retail Trade are applied to those who violate other provisions.
The Ministry is authorized to appoint experts in inspections related to the obligations of auction platforms, under paragraph two of Article 11 of Law No. 6563 on the Regulation of Electronic Commerce (The Ministry is authorized to conduct inspections to ensure the implementation of this Law, disclose inspection results, appoint experts in cases requiring special expertise or technical knowledge, and determine the procedures and principles regarding the rights, obligations, and appointment of experts by regulation. The fee for the expert will be determined jointly by the Ministry and the Ministry of Treasury and Finance, and will be covered by an appropriation in the Ministry’s budget) (Regulation Article 31).
IX. TRANSITIONAL PROVISIONS
A. High School Graduation Requirement and Vocational Competence Certificate
For businesses engaged in the trade of used motor vehicles, which have income or corporate tax or chamber of commerce registration as of August 27, 2024:
a) For sole proprietorships, the business owner as of that date,
b) For legal entity businesses and branches, one of the authorized representatives conducting used motor vehicle trade activities as of that date, if the authorization certificate applications are made by March 1, 2025, the high school graduation requirement specified in subparagraph (2) of paragraph (ç) of the first paragraph of Article 6 will not be sought. The Ministry is authorized to extend this period by up to six months.
Motor vehicle trade consultants who took the Level 5 vocational competence certificate exam or obtained this certificate before August 15, 2020, are not required to have the Level 4 vocational competence certificate, provided their certificates are not canceled under the relevant legislation (TRANSITIONAL ARTICLE 1).
B. Marketing and Sales Restriction
Those engaged in the trade of used motor vehicles are prohibited from directly or indirectly marketing or selling motorcycles, automobiles, and off-road vehicles before six months and six thousand kilometers have passed from the date of first registration, until January 1, 2025 (TRANSITIONAL ARTICLE 2).
C. Advertisement Restriction
Marketing of used motor vehicles via advertisements at a price above the current sales price recommended by the manufacturer or distributor is considered as used motor vehicle trading in terms of the application of this article.
Marketing of used motor vehicles via advertisements at a price above the current sales price recommended by the manufacturer or distributor is prohibited until January 1, 2025.
Natural or legal persons intermediating the advertisement for the sale of used motor vehicles are obliged to warn those who enter advertisements in violation of the second paragraph before the advertisement is published and to transmit all information about these advertisements and the advertisers to the Ministry in accordance with the Ministry’s requirements. The obligation to warn includes informing the advertiser of the current sales price recommended by the manufacturer or distributor and notifying them that the entered advertisement price constitutes a violation of this Regulation.
The Ministry is authorized to determine the vehicle class, brand, trade name, type, model year, and the maximum amount and/or percentage that can be added to the current sales price recommended by the manufacturer or distributor if accessories and/or equipment are added (TRANSITIONAL ARTICLE 3).
D. Authorization Certificates Issued Under Previous Legislation
Authorization certificates issued before August 27, 2024, are valid (TRANSITIONAL ARTICLE 4).