New cars are reduced by hundreds of millions, is there still a place for used cars?

Along with many car manufacturers continuously launching a series of completely new car models, they also deeply discount many car models to stimulate consumer demand, making the used car market, which was already difficult, even more difficult, especially when the regulation on identification plates comes into effect.

New cars launched and car prices dropped sharply

Since the second half of September, the Vietnamese auto market has witnessed the launch of more than 10 completely new car models from different brands, including both internal combustion engine and electric vehicles.

Specifically, Hyundai Thanh Cong Vietnam Automobile Joint Venture introduced the all-new Hyundai Palisade SUV and Custin MPV. Toyota Vietnam launched the all-new B-size SUV Yaris Cross and Innova Cross MPV. Skoda Vietnam, a member of Thanh Cong Group, introduced the Skoda Karoq and Kodiaq SUV duo.

Mercedes-Benz Vietnam also introduced 3 pure electric SUV models including EQB, EQE and EQS. MG Vietnam is equally exciting with the duo New MG5 and RX5. VinFast has also added the VF 6 SUV model to the market...

Car manufacturers are constantly innovating to bring customers the most modern and advanced products. Thanks to the development of technology, these new car models have been equipped with many outstanding features, meeting the increasing needs of consumers.

In addition to launching completely new products, many car manufacturers have also adjusted the selling price of new cars from tens to 534 million VND. Accordingly, Hyundai Thanh Cong adjusted the selling price of 2 models Santa Fe and Tucson, reducing the highest by 191 million VND; Honda continued to reduce the price equivalent to 100% of the registration fee; Toyota continued to support 50% of the remaining registration fee for customers buying Vios cars; Volkswagen simultaneously supported 100% of the registration fee, up to 400 million VND; Mercedes-Benz also reduced the price equivalent to 50% of VAT on the selling price for most car models, helping to reduce the car price from 76 million to 534 million VND for the G 63 car...

The used car market is getting more difficult.

The launch of many completely new models and deep discounts on many new models have put great pressure on the used car market, which has been gloomy for a long time. Accordingly, many car owners and used car dealers have had to cut deep losses but still cannot find customers to buy.

There are many reasons for the difficulties in the used car market, but one of the main reasons is the complicated procedure for transferring ownership of used cars (applied since August 15) that lasts for several months, making consumers no longer excited.

According to the reporter, the situation of unsold cars at used car dealerships is quite common. Many used car dealerships have to cut deep losses but still have no customers.

Mr. Nguyen Hoang, owner of a used car showroom on Truong Cong Giai Street, Hanoi, said that since August 15, the identification number plates according to Circular 24/2023/TT-BCA on "Regulations on granting and revoking registration and license plates of motor vehicles" have been officially applied, the used car market has declined and become more difficult.

According to Mr. Hoang, in the past, transferring ownership and changing license plates for customers only took a few days or a maximum of a week, even for vehicles from other provinces. Thanks to that, his facility sold a few dozen vehicles each month. However, since Circular 24/2023/TT-BCA took effect, the process of retrieving license plates and registering and completing procedures for customers has taken longer. Sometimes it takes several weeks, even more than a month to complete. This makes customers impatient to wait for used cars, leading to a sharp decrease in the number of cars sold compared to before.

Not only because of the lengthy procedures, some popular models such as Hyundai Santa Fe had to cut losses up to 200 million VND, but were still very difficult to sell because the company adjusted the new selling price down to 176 million VND, helping the listed price to only 1.199 billion VND, not to mention customers also received a 50% discount on registration fees from the Government. If calculated, consumers saved nearly 250 million VND compared to the previous price, causing many people to reconsider their choice.

Meanwhile, Mr. Manh Hung, a used car dealer on Nguyen Chanh Street, Hanoi, said that revoking the registration and license plate of a used car buyer to register for a new one is much more complicated than registering a license plate for a new car. In addition, it is not always easy to contact the old car owner or they are not willing to support, which makes the time longer.

"There are customers who have decided on a car but have waited for 3 weeks to withdraw their documents and still haven't finished, so they demand a refund to buy a new car. The procedure is lengthy and time-consuming, leading to a significant decrease in the number of customers," said Mr. Hung.

According to Mr. Hung, the used car market is facing not only the problem of license plate recall but also the difficulties caused by the general economic downturn. New car prices are constantly being promoted and discounted, making consumers less enthusiastic about buying used cars. This has caused the used car transaction market to decrease by about 20-30% compared to before August 15.

It is noted that many used car businesses have had to cut losses to recover capital with the desire to switch to other business fields, but customers remain indifferent.

Representatives of some used car businesses said: "Along with the general difficulties of the economy, new car prices are constantly discounted and deeply promoted, causing many difficulties for the used car market. Therefore, we think that management agencies need to have appropriate regulations to facilitate the transfer of ownership of used cars. This will help used car buyers to complete the procedures more quickly and easily, thereby helping the used car market recover and develop again."