Brian Jeffrey
The used-car districts in Hanoi, like Pham Hung, Le Van Luong in Thanh Xuan, Tran Thai Tong, Thanh Thai and Nguyen Chanh in Cau Giay, and Pham Van Dong in Bac Tu Liem, are notably quiet, even during weekends.
Nguyen Minh Do, owner of Do Van Auto Salon on Pham Van Dong street, shared that sales have slowed down in the past two months, with a halved number of buyers.
“We used to sell around 100 cars per month, but now it’s only 1-2 cars a day,” he mentioned. “The reasons vary from the off-peak sales season and economic challenges. Yet, I believe the predominant factor is the anticipated 50 percent reduction in vehicle registration tax.”
The Ministry of Finance proposed a 50 percent tax cut to stimulate the sales of locally assembled cars.
On the other hand, Le Minh Hieu, a freelance salesman in Nam Trung Yen area, noticed a sharp decline in both sellers and buyers’ interest in used cars post-Tet holiday in February, reflecting the subdued state of the new car market.
“The post-pandemic economic downturn and sluggish stock market have led many to cancel their car buying plans,” he noted.
He added, “In previous years, we could easily find good deals during the World Cup and Euro Cup season. However, this year, there are very few such opportunities. Used-car dealers struggle to find cars for purchase due to few sellers, potentially resulting in financial losses.”
Prospective used car buyers are eagerly awaiting a definitive decision on the tax reduction. Some remain undecided between purchasing a new or used vehicle.
For instance, Vu Van Minh, 38, from Cau Giay district, is torn between buying a nearly VND1 billion 2022 Hyundai Santa Fe Premium or a brand-new car.
“If the 50 percent tax cut is approved, the new Santa Fe could be purchased for VND1.2 billion. I would rather spend an additional VND200 million for a new car than save VND200 million on a used one,” he highlighted.
Nguyen Quoc Khanh, owner of 668 Auto, mentioned that for luxury car purchases, buyers could save up to VND50-70 million with the tax cut.
