Used car prices "fall dramatically", car dealers struggle to bear losses

According to a reporter's survey, the used car market at the end of 2023 is still gloomy despite being the peak season at the end of the year.

"Previously, every time the Government offered a 50% discount on registration fees, car companies would cut promotions, but now, along with the incentives, the prices of new cars have dropped sharply. The prices of used cars have accordingly 'dropped dramatically' compared to the same period last year.

Throughout 2023, used car dealers like us continuously reported losses, and profits, if any, were only enough to maintain operations. People tightened their spending, so the decision to buy used cars for use was very rare," said Mr. Phan Dung, owner of a used car showroom in Thanh Xuan, Hanoi.

According to Mr. Dung, some used car models such as Toyota Vios, Hyundai Grand i10, KIA Morning, Mercedes-Benz, MG 5, MG Zs, Chevrolet Trailblazer, Ford Ranger... all have a tendency to decrease in price, the amount of decrease depends on the condition and year of the car.

Specifically, at Mr. Dung's showroom, the Hyundai Grand i10 AT 2018 model was sold for 340-345 million VND at this time last year, but this year it is priced at 300-310 million VND, which is also quite difficult to sell. The B-class sedan, Toyota Vios E AT 2020, was priced at 465-475 million VND last year, but this year it has decreased to about 410 million VND.

The "national" KIA Morning car model is easy to sell every year, but this year it has to be heavily discounted but is still difficult to sell, like the 2019 S version last year cost 330 million VND, now it only fluctuates between 270-280 million VND.

In particular, used Mercedes cars are having to cut losses at many stores because the price is decreasing every day. "I just had to sell my 2017 Mercedes E250 at a loss of more than 400 million VND. Last year, the market was still selling this car for about 1 billion 350 million VND, but now the price is only around 900 million VND," Mr. Dung sighed.

Although used car prices have been adjusted down to "retain" customers, demand has not increased. According to Mr. Dung, the number of customers buying used cars in December increased slightly compared to previous months of the year but decreased by 40% compared to the same period last year. Customers mainly look to buy small-sized cars in the AB segment and 7-seat cars for business services. Therefore, in addition to discounts, many showrooms also support customers to withdraw documents, transfer ownership in full packages and even deliver cars to their homes for free.

With just over a month to go until Lunar New Year, this time is always considered the sales season for car dealers. However, the poor business situation has made car dealers restless and hope that things will change in the new year.

Mr. Nguyen Thanh, owner of a used car showroom in Nguyen Van Cu, Long Bien, Hanoi said: "Currently, our showroom does not dare to import more cars. If we spend money to buy a car at this time, we have to weigh and measure every little bit. Because there are quite a lot of cars in stock, we have to accept losses to recover and turn over capital. Now I just hope that people's year-end shopping demand will increase again and the selling price of cars will increase a little bit."

Mr. Doan Dung (Hanoi), a person with many years of experience in the used car business, commented: "Regardless, near Tet, the used car market will be more bustling. Because new, high-end cars are in short supply due to running out of cars. The market has been slow all year, so the number of customers flocking to the end of the year is greater. Another part is because this year, car prices have dropped sharply, making it easier for customers to access. And most importantly, due to financial difficulties, many customers may choose to buy used cars instead of new ones."