Economic Indicators and the Automotive Sector: The Impact of Car Loan Interest Rates and GDP on Vehicle Sales and Rentals
Chapter from the book: Karapınar Kocağ, E. & İnce Yenilmez, M. (eds.) 2024. Contemporary Microeconomics Applications.

Hayriye Taşcı
Gaziantep University

Synopsis

This study aims to examine the relationship between car loan interest rates and Gross Domestic Product (GDP) with car sales and rentals during the period of 2014-2023. The research conducts an in-depth analysis using various statistical methods to understand the interaction of economic indicators with the automotive sector in Turkey. Initially, the Augmented Dickey-Fuller (ADF) test was applied to determine the stationarity of the variables. The test results indicated that GDP and car loan interest rates are non-stationary. This finding reveals that the time series data have changing means and variances. Descriptive statistics were used to determine the average, median, maximum, and minimum values of car loan interest rates, and information about the distribution of these data was provided. The results obtained show that car loan interest rates have a more volatile structure and that market conditions have a significant impact on these rates. The Error Correction Model (ECM) analysis revealed a long-term equilibrium relationship between the variables. This model evaluated the effects of GDP and car loan interest rates on car sales. The results indicate that increases in GDP positively affect car sales, while high-interest rates hinder car purchases, negatively impacting sales. In conclusion, this study provides important findings to understand the dynamics of economic indicators in the automotive sector and offers valuable information for policymakers. A better understanding of the effects on car sales and rentals will assist in making strategic decisions in the sector.

How to cite this book

Taşcı, H. (2024). Economic Indicators and the Automotive Sector: The Impact of Car Loan Interest Rates and GDP on Vehicle Sales and Rentals. In: Karapınar Kocağ, E. & İnce Yenilmez, M. (eds.), Contemporary Microeconomics Applications. Özgür Publications. DOI: https://doi.org/10.58830/ozgur.pub583.c2403

License

Published

December 24, 2024

DOI