Used Car Prices Plummet, Demand Stays Low

The Vietnamese used car market is in a prolonged slump, with prices for many models falling by tens of millions of VND. Despite significant price reductions compared to last year, consumer demand remains subdued. This quiet period is notably impacting dealerships in Hanoi, where fewer customers are browsing vehicles.

Sellers report a sharp decline in foot traffic and sales volume, potentially by 30-40 percent compared to the previous year. Buyers are showing increased caution, often delaying purchase decisions even after inspecting vehicles multiple times. The narrowing price gap between new and used cars, especially with manufacturer discounts and registration fee support for new vehicles, further discourages immediate used car purchases.

Escalating fuel prices and uncertainties surrounding the transition to E10 gasoline are also contributing factors. Buyers express anxiety about potential increases in operating costs and the compatibility of older models with new fuel types, leading to a wait-and-see attitude.

In response to the prolonged decline in purchasing power, many used car showrooms are limiting their inventory acquisition. Instead of buying vehicles outright, dealers are increasingly opting for consignment sales. This strategy helps reduce capital investment and associated expenses like loan interest, rent, and maintenance, while still offering a variety of models to potential buyers.