The formation of prices in Azerbaijan's automobile market does not follow a single model, but occurs based on a highly heterogeneous structure with significant variations.
Medianews.az reports that this was noted in the latest analyses conducted by the Azerbaijan Chamber of Appraisers (AQP) based on the vehicle market.
It was stated that although the average market price is 28,361 manats, the median indicator being at the level of 18,500 manats reveals that high-priced cars significantly influence the overall statistics. This difference confirms that there is a high price dispersion in the market and that even vehicles of the same type are offered within a wide price range.
The Chamber noted that the price behavior of cars is not determined solely by the brand. The main influencing factors are model characteristics, technical indicators, mileage, and condition of use. Even within the same brand, price differences among models are sometimes higher than those between different brands, indicating the complexity of the market structure and highlighting the importance of a deeper analytical approach in the appraisal process.
The study also analyzed the depreciation dynamics of cars. It was determined that value loss does not follow a linear pattern and varies depending on the duration of use. Vehicles lose approximately 20-30% of their value in the first 1-3 years. In the subsequent 3-7 year period, this process stabilizes somewhat, continuing at an annual rate of 10-15%, and between 7-10 years at 5-8%. After 10-12 years, the rate of depreciation significantly slows, but it would not be correct to say that the value fully stabilizes after this stage. At this point, the market price of the car is more influenced by its technical condition, mileage, usage conditions, and market liquidity.
In certain cases, especially for rare and classic models, price increases may also be observed over the long term. The analysis emphasized that market liquidity seriously affects price formation. It was noted that cars in the low and mid-price segments sell more quickly, and prices in these segments remain relatively stable. Conversely, high-priced and premium cars have a wide price range and take longer to sell, indicating higher valuation risks in that segment.
Within the study, the impact of mileage on price was also separately evaluated. According to the data, an increase in the car's mileage has an additional negative effect on its market value. Preliminary calculations show that every additional 10,000 kilometers driven creates an average discount of 3–7% in the car’s price. This effect varies depending on the vehicle's age and technical condition but is observed as a consistent trend in overall market behavior.
In conclusion, it was emphasized that simple average indicators in the car market do not fully reflect the real situation. Therefore, AQP considers the application of a methodological approach based on medians, segmented and taking into account key factors such as age and mileage, necessary for calculating a transport index. It was noted that this approach can form a more accurate analytical base for appraisers and can also serve as an objective and reliable reference mechanism for courts, banks, and insurance companies.//Bakıvaxtı.az