Will the elimination of prices restore stability to the car market? / Why did the car become expensive?

According to Trade News, prices in the car market are rising and policymakers have gone back to a repetitive experience.

Apparently, the Ministry of Silence has asked online sales platforms to set a ceiling for car prices and not to set prices higher than that.

Tejarat News recently reported on the order of the Ministry of Silence to the Wall and Trumpet to remove prices.

According to the report, as the dollar rose, the ministry summoned administrators of online shopping sites and car price-offering platforms and asked them to place advertisements with personal identification.

Experts, however, believe that these methods can not restore stability to the car market.

Why did the car become expensive?

In this regard, Ali Sadeghin, a financial markets expert, considers the only factors affecting the car market to be supply and demand, cost, exchange rate and inflation expectations.

He emphasizes that market conditions can not be controlled by eliminating prices.

“The most important factor determining prices in the market is the amount of supply and demand and the variables that affect these two,” the expert told Trade News.

Supply and demand imbalance

Sadeghin adds: The car market has faced a sharp decline in the supply of foreign and domestic cars in the past three years.

The financial markets expert continues: In contrast, rising costs, rising inflation and rising inflation expectations have pushed up market demand.

According to him, meanwhile, whenever the exchange rate has risen, inflation expectations for scarce products, including cars, have risen.

Sadeghin says: “Whether the rates are included in news sources and sites or not, a wide range of market participants are increasing demand.”

Clear the problem

“Eliminating prices, clearing the issue and repeating the same thing that was done with the exchange rate,” he said.

According to the expert, in the past, restrictions on sites announcing free exchange rates and gold, could not control prices.

Sadeghin adds: “Controlling platforms, even with the view that they play a role in price orientation, does not solve the problem of the car market.”

According to the financial market expert, such an action may only be a kind of short-term shock to the market, which also has little effect.

Read the latest car news on the Tejarat News car news page.