Car prices in Vietnam are hitting rock bottom, should you buy a car now?

Recently, car manufacturers in Vietnam have had many discount programs, but according to many experts, car prices are currently hitting rock bottom.

Last May, some car manufacturers such as Toyota, Honda, Chervolet, Huyndai,... had many incentive programs, directly reducing the selling price of their products. However, their business is facing difficulties because customers are waiting for the tax reduction to 0% in January 2018, thereby helping to make car prices cheaper.

However, some car dealers say that it will be difficult to reduce car prices in the near future. Currently, car prices have hit rock bottom.

What is the scenario for car prices in June?

The selling prices of many current car models are considered to be at the "rock bottom" level. Therefore, according to many experts, in the near future, a scenario that benefits consumers is unlikely to happen. In the roadmap towards the ASEAN Free Trade Agreement (AFTA) which began to be applied in January 2018, only a few car models imported directly from the ASEAN market such as Toyota Fortune, Ford Ranger,... will benefit from the reduction of import tax to 0%.

Honda CR-V is having a pretty strong discount.

Meanwhile, domestic consumers are blindly believing that domestic car models will be discounted.

Recently, Thaco confirmed that in the future, Mazda car prices will not be able to be adjusted down further because the current car prices are at the "rock bottom". Thus, after many price reductions, Thaco officially gave up the car price reduction war that this "domestic" car company started. Therefore, Thaco's giving up the car price reduction war will have a significant impact on the domestic car market.

Recently "hot" car models such as Toyota Fortuner, Ford Ranger or some cheap car lines such as Hyundai or Kia are being adjusted to reduce prices very moderately, or keeping the same discount level as in May.

A Honda car dealer admitted that it is unlikely that some of the company's car models such as the CR-V or Civic will be discounted further. The only consolation at the moment is that the preferential prices in May may continue to be maintained in the future.

Some experts say that, in addition to imported car models in the ASEAN bloc such as Ford Ranger and Toyota Fotuner, car models that are not subject to tax reduction in early 2018 are worth buying at this time.

Many consumers believe that car manufacturers’ price cuts are just a ploy to boost sales of some models that are currently experiencing sluggish sales. In other words, unsold models are deeply discounted to reduce inventory.

According to records, the champion in the May car price reduction race belongs to the Ford Everest model with a reduction of 46 - 135 million VND. In particular, the Everest Trend 2.2L version is heavily discounted by Ford dealers by up to 135 million VND, the actual price at dealers is reduced from 1.25 billion VND to 1.115 billion VND.

Next is the Honda CR-V model. Currently, Honda dealers are applying the highest incentive for this model with a value of up to 90 - 115 million VND. The price of the CR-V 2.4 AT TG version is directly reduced by 115 million VND. The actual price has decreased from 1.178 billion VND to only 1.063 billion VND. This incentive has been maintained since April 2017 and is expected to continue in June.

The 3rd place belongs to Toyota Camry, which is unlikely to continue to surprise consumers with a 90 million VND reduction in May. Currently, the luxury Camry has 3 versions, the selling price of this car model ranges from 1 - 1.3 billion VND.

In addition, Toyota Vios, Innova, Ford Focus, Honda Civic models are still having high discounts from 50 - 80 million VND.

Should I buy a car at this time?

A Honda dealer commented that the current selling prices of many car models are at very attractive levels. Except for products that are not eligible for tax incentives in 2018, most car models are at rock bottom.

Car prices in the coming time will hardly decrease further, especially in the low-cost car segment under 500 million VND.

According to a report by the Vietnam Automobile Manufacturers Association, car sales in the entire market in April unexpectedly dropped dramatically, down 15% compared to the same period last year. This is a rare occasion when car sales in the entire market turned to decline after many months of continuous rapid growth.

In addition to waiting for car manufacturers to reduce prices, the fact that the actual selling prices at dealers are dropping too deeply for their products has made many consumers unhappy. Specifically, Mr. Hoang Van Thai (Hanoi) said that right after buying a Toyota Camry at the end of March, the price of this luxury car model was immediately reduced by 70 million VND in early April, and continued to decrease by another 90 million VND in May.

Thus, after only 1 month, Toyota Camry has lost more than 100 million VND in value: "I bought the car to drive, not to buy and sell. However, hearing that the car has dropped so much right after buying it will shock many people," said Mr. Thai.

However, according to many experts, car prices in the coming time will hardly decrease further, especially in the low-cost car segment under 500 million VND.

According to Vietnamnet