Used car market: Cheap cars are quiet, luxury cars are in high demand

It was thought that in the context of economic difficulties, people would tighten their spending, but according to a survey by VTC News reporters, in the used car market, luxury cars are more popular than cheap cars.

Quiet cheap car

If the time near Lunar New Year, the cheap used car market flourished with a large number of cars sold, typically the NH showroom on Pham Hung Street, Hanoi sold 3 cars a day, then at this time in the middle of the year, the business situation, according to used car shop owners in Hanoi, is relatively gloomy and quiet.

Many used car shops with good prices are scattered on the streets but have few customers. Mr. Ngoc Long - owner of NH used car shop said that recently, the cars at his shop have been selling quite slowly. Only a few cars a month.

He believes that the reason why consumers are indifferent to the cheap used car market is the general economic difficulties. Normally, cheap cars like Civic, Daewoo Matiz, Kia Morning or Toyota Innova sell like hotcakes, "as soon as they arrive, they sell out", but now "showrooms are exposed to the elements for a month without anyone buying". It is known that those types of cars cost from 200 to 600 million VND/car.

Cheap used cars are not popular

Surveying streets selling used cars at average prices in Hanoi such as Le Van Luong, Lang Street, Nguyen Van Cu, Pham Hung, VTC News reporters found that the number of customers coming to see the cars was quite low.

Mr. Tuan Phuong in Long Bien, Hanoi is looking at cars with his wife at a small, affordable car showroom on Tran Duy Hung Street. He said: “I am looking to buy a car for my wife. I need a small, affordable car. I also see many cars with affordable prices but I am still considering because with that price, I can spend a little more money to buy a new car.”

Mr. Xuan Phu, Sales Manager of TM Used Car Salon on Le Van Luong Street, Cau Giay, Hanoi, said that the selling price of used cars still depends mainly on people's budget and demand. At present, when the economy is difficult, people are tightening their spending, causing car dealerships like his to fall into a prolonged slump. The number of used cars sold at the showroom in a good month is only one or two cars, which is... the bottom.

Bustling luxury car market

In contrast to the desolate and sluggish scene of some old, affordable car showrooms, the buying and selling atmosphere at luxury car showrooms is quite bustling. If at cheap used car showrooms, 1-2 cars are sold each month, at luxury car showrooms, one car is sold each day.

Mr. Ngo Anh Tuan, in charge of sales at a luxury car salon on Nguyen Chi Thanh Street, shared that the used car market is mainly bustling in the first 3 months of the year and the last 3 months of the year, and around June and July like now is the slowest. This is the general situation at salons in Hanoi.

However, this month, his salon has been selling quite well. Especially cars under 1 billion such as: Bentley, Range Rover, Porsche Panamera 4s or Hummer H2. According to him, the best-selling car line at this time is Mercedes. The price depends on each line, for example, the E line is around 1.3 billion - 1.5 billion; the S line is a high-end line, around 2.4 billion, and the cheapest C line is 1.2 billion or less.

Mr. Trong Duc (Tay Ho, Hanoi) is choosing to buy a used car. He said he wants to buy a car that is affordable, fuel-efficient, easy to repair, and doesn't lose value when selling. He is looking at a Toyota Camry or a Lexus. He said: "After some consideration, I decided to buy a Lexus. I'm in business so I pay a lot of attention to the exterior image. In addition, although this is a used car, I trust this car dealership because my friends recommended that their accompanying services are very good."

For consumers, a car is not only a means of transportation but also a valuable asset. Therefore, the customers who often come to luxury car showrooms are mostly people with financial capacity or those who have become rich through real estate business.

Due to the strong increase in purchasing power, recently, used car showrooms have imported mostly luxury cars. Le Van Luong Street (Cau Giay, Tu Liem) and Nguyen Van Cu Street (Long Bien) are bustling with used car shops.

Mr. The Toan - owner of a luxury used car salon said that used car business is not simple, to gain the trust of customers, we need to have good service. But with used cars, good service is a difficult problem to solve.

Mr. Nguyen Quyet (real estate sales) said that one of the reasons he does not buy a used car at a reasonable price is because the service that comes with a cheap car is not as luxurious as when buying a luxury car.

For example, when customers ask about warranty, most salons answer yes. However, when a car has a problem and needs to be repaired under warranty, many salons cannot do it for many reasons, from the lack of human resources to the factory being too weak.

According to VTC.new