Used car market: Low-priced cars are selling poorly, while luxury cars are in high demand.

One might expect that in the current difficult economic climate, people would tighten their spending, but according to a survey by VTC News reporters, luxury cars are selling better than cheaper cars in the used car market.

Quiet in the market for cheap cars.

While the used car market in Hanoi typically sees a surge in sales during the period leading up to the Lunar New Year, with some showrooms like NH on Pham Hung Street selling up to three cars a day, business is relatively sluggish and quiet in Hanoi during this time of year, according to used car dealership owners.

Many used car dealerships offering good prices are lining the streets, but they have very few customers. Mr. Ngoc Long, owner of NH used car dealership, said that recently, car sales at his store have been quite slow, only a few cars a month.

He believes the reason consumers are indifferent to the affordable used car market is the general economic downturn. Normally, inexpensive models like the Civic, Daewoo Matiz, Kia Morning, or Toyota Innova sold like hotcakes, "selling out as soon as they arrived," but now "showrooms are left exposed to the elements for months without anyone buying." These types of cars are known to cost between 200 and 600 million VND per vehicle.

Cheap used cars aren't selling well.

A survey conducted by VTC News reporters on streets in Hanoi selling mid-range used cars, such as Le Van Luong, Lang Street, Nguyen Van Cu, and Pham Hung, revealed that the number of customers coming to view cars was quite low.

Mr. Tuan Phuong from Long Bien, Hanoi, was looking at cars with his wife at a small, reasonably priced showroom on Tran Duy Hung Street. He said: “I’m looking to buy a car for my wife; I need a small, affordable car. I’ve seen many reasonably priced cars, but I’m still considering them because with that price, I could add a little more and buy a brand new car.”

Mr. Xuan Phu, in charge of sales at TM used car salon on Le Van Luong Street, Cau Giay District, Hanoi, said that the sales of used cars mainly depend on people's budgets and needs. Currently, with the difficult economic situation and people tightening their spending, car dealerships like his are experiencing prolonged periods of sluggish sales. Even in a good month, the number of used cars sold at his salon is only one or two at most.

The luxury car market is bustling.

In contrast to the sluggish and slow sales at some mid-range used car dealerships, luxury car showrooms are bustling with activity. While showrooms selling inexpensive used cars might only sell one or two vehicles a month, luxury car showrooms are selling one car a day.

Mr. Ngo Anh Tuan, in charge of sales at a luxury car dealership on Nguyen Chi Thanh Street, shared that the used car market is mainly bustling in the first three months and the last three months of the year, while months like June and July, like now, are the slowest – this is the general situation at dealerships in Hanoi.

However, this month, his dealership has been doing quite well. Especially with models priced around 1 billion VND, such as Bentley, Range Rover, Porsche Panamera 4s, and Hummer H2. According to him, the best-selling model at the moment is Mercedes. Prices vary depending on the model; for example, the E-Class is around 1.3 billion - 1.5 billion VND; the S-Class, the high-end model, is around 2.4 billion VND; and the C-Class, the cheapest, is around 1.2 billion VND.

Mr. Trong Duc (Tay Ho, Hanoi) is looking to buy a used car. He said he wants a car that fits his budget, is fuel-efficient, easy to repair, and won't depreciate much when resold. He's considering a Toyota Camry or a Lexus. He said: "After much consideration, I decided to buy a Lexus. As a businessman, I pay close attention to my image. Besides, even though it's a used car, I trust this dealership because my friends recommended them, saying their after-sales service is excellent."

For consumers, a car is not just a means of transportation but also a valuable asset. Therefore, the majority of customers who frequent luxury car dealerships are financially capable individuals or those who have become wealthy through real estate business.

Due to strong purchasing power, used car dealerships have recently been importing mostly luxury cars. The streets of Le Van Luong (Cau Giay, Tu Liem) and Nguyen Van Cu (Long Bien) are bustling with used car shops.

According to Mr. The Toan, the owner of a luxury used car dealership, the used car business is not simple. To gain customer trust, you need good service. However, providing good service for used cars is a difficult problem to solve.

According to Mr. Nguyen Quyet (a real estate trader), one of the reasons he doesn't buy moderately priced used cars is because the services associated with cheaper cars aren't as luxurious as those offered when buying luxury vehicles.

For example, when customers ask about warranties, most dealerships say yes. However, when a car breaks down and is brought in for warranty service, many dealerships are unable to handle it for various reasons, ranging from a lack of personnel to inadequate or insufficient workshop facilities.

According to VTC.news