Vietnamese people still prioritize Toyota when buying used cars

According to statistics from a used car trading platform in Vietnam, the models with the most listings and transaction contacts in 2023 are mostly Japanese cars, especially Toyota, the company that has held the number one market share in the new car segment for many years. The driving quality is not special, but the durability, low breakdown rate, practicality and ability to retain value when resold are the things that make many Toyota models sought after in the secondary car market.

In the top 10 car models with the highest percentage of ads for sale (above), Toyota is present with 4 names: Vios, Innova, Fortuner and Camry. Korean cars have 3 products: Kia Morning, Hyundai i10 and Hyundai Accent. Mazda has 2, including Mazda3 and CX-5. Ford Ranger is the only pickup truck model on this list.

"Used Japanese cars, usually from brands like Toyota and Mazda, have the ability to hold their value well in the market," said Anh Dung, manager of a used car showroom in Hanoi. "Used car showrooms prioritize buying these models because of their good liquidity in the market."

Not only does Toyota account for a high percentage in the top 10 sources of sales, it also dominates the top 10 demand. In the graph below, of the 10 used car models that buyers contact sellers the most, Toyota also accounts for 4 models, or 40%, and is still Vios, Innova, Fortuner and Camry.

Mr. Dung said that the used car market comes later but has an impact on the new car market. For many ordinary customers, liquidity when reselling is also a factor that affects their decision to buy a car. According to used car dealers, the liquidity of a car model is considered good when the car's resale value is as high as possible and the time to push the goods is as short as possible.

The good liquidity of used cars makes customers who want to buy a car to use for a while and then upgrade to a new car, often choose a new car of the same model. Mr. Dung analyzed that Toyota's Vios has an average depreciation rate of only about 5-7%, the lowest in the used car market, so both used car buyers and new car buyers have an easier time making decisions than other products.

Statistics show that the most popular used car models are mostly low-chassis cars. Models such as Toyota Vios (B-class sedan), Kia Morning, Hyundai i10, Chevrolet Spark (A-class hatchback), Toyota Camry (D-class sedan), Mazda3 (C-class sedan) top the list of ads and contacts for buying and selling. The rest are high-chassis models such as Toyota Innova, Toyota Fortuner, Ford Ranger and Mazda CX-5.

According to used car dealers, B-class sedans and A-class hatchbacks are traded a lot because the price is around 300-400 million VND, suitable for the majority. Low initial investment cost, practicality, and few breakdowns are the top criteria for used car buyers.

"With a budget of around 400 million or less, customers can choose many high-end sedan or hatchback models (close to new models) instead of models in higher segments but older models," said Ba Cong, owner of a used car buying and selling business in Dak Lak.

According to Mr. Ba Cong, Toyota's low-chassis cars, especially Vios, or Korean models such as Kia K3, Morning, Hyundai i10, Accent are very popular in the used car market. In addition to the affordable price, these models are easy to drive, with moderate size for urban mobility. For customers who need a practical car with low operating costs, buying models such as Vios, i10... is a safer choice than other models.

Explaining the trend of preferring low-chassis cars instead of high-chassis cars or MPVs, used car dealers say that B-class sedans or A-class hatchbacks have long dominated the new car market. High sales are also the reason why these models appear more frequently in the used car market.

"Small SUVs or MPVs have only become popular in Vietnam in the last 4 years," said Anh Dung. "Most of these cars are still in use by their original owners, so the supply for the used car market is less than that of B-class sedans or A-class hatchbacks."

Mr. Dung further explained that before 2018, Vietnamese people used their cars for an average of 7 years before deciding to change to a new car, but after that, the number dropped to 4-5 years. Customers tend to change cars and upgrade to new models faster as their income increases and the market becomes more diverse in new models. However, with small high-chassis models like Kia Seltos and Hyundai Creta dominating the market share of the small CUV group, the "age" of the car on the market is still quite young.

With MPVs, Mitsubishi Xpander is the model that created the consumer trend since 2018. Up to now, many Xpander models have appeared on the used car market. "But the target customers of Xpander or other MPV models are usually those in the transportation and taxi service business. This group of owners tends to use the car for a long time due to the nature of their daily work, so the number of cars for sale is not as high as other models," said Mr. Dung.