The car market is bustling again

Mr. Tran Ngoc Quynh in Cau Giay, Hanoi, who works as a used car broker, said that in the first 3 months of the year, he only brokered a few used cars. However, recently, the number of customers looking to buy used cars has increased dramatically. In the past month, he has successfully traded for about 10 customers.

Mr. Quynh added that if in the past, people buying used cars focused on cheap cars, now people's needs have changed. Cheap price is no longer a priority when buyers look for used cars. The factor that buyers care about most now is the quality of the car (especially whether the car has been in an accident or flooded), second is the model of the car. Finally, the price of the used car comes.

Therefore, in addition to directly brokering used cars, many people like Mr. Quynh provide car appraisal services. That means the buyer will find the seller himself and then invite a mechanic to evaluate the quality. Each time he looks at the car, he will be paid 500,000 to 1 million VND depending on the distance traveled. If the transaction is successful, the buyer or seller can reward the appraiser 1 to 3 million VND.

Mechanics are invited to evaluate the quality of used cars. Photo: Ngoc Quynh

According to statistics from a number of e-commerce sites, the used car market in the first 4 months of 2023 unexpectedly regained growth momentum compared to the same period in 2022 when the total number of car purchase contacts increased by 11%.

Specifically, after a sharp decrease in supply of 31% and demand of 17% in the Lunar New Year month compared to the same period last year, the market regained growth momentum in the following months.

Also according to data from the e-commerce site, the used car market recorded a 26% increase in demand for car purchases during the April 30, 2023 holiday compared to the same holiday season in 2022.

Among the used car lines, sedans continue to prove their position as the used car segment that is favored by Vietnamese people. Specifically, the number of contacts to buy and the number of car sales posts increased by 17% and 19% respectively compared to the same period last year. The factors that create the appeal of car models in this segment include compact design for easy movement in urban areas, variety of versions, fuel economy and affordable prices for the majority of people who want to buy a car.

Sedans and hatchbacks occupy most of the positions in the top 10 most contacted cars in the first quarter of 2023. Among them, the most prominent are still the names in the top segment such as Kia Morning, Honda City, Toyota Vios or Hyundai Grand i10. Particularly for B-class sedans, Honda City 2018 and Toyota Vios 2018 are the two most sought-after car lines because of their changed appearance, making both models sportier and more fashionable than previous versions.

In general, the used car market is increasingly vibrant but there are still many shortcomings in terms of quality and origin of the car. Accordingly, users tend to shift their criteria for buying cars from cheap to guaranteed quality. These guaranteed cars include 5 standards: safe legal records (no disputes, no fines, no mortgages), no signs of major or serious accidents, no signs of flooding or water hammer, no signs of fire or explosion and a comprehensive quality inspection of 207 items.

Not only used cars, the new car market is also showing signs of recovery. According to data released by the Vietnam Automobile Manufacturers Association at the end of April 2023, the total auto market sales in March were 30,038 vehicles, an increase of 30% compared to February 2023. Of which, 21,696 were passenger cars; 7,990 were commercial vehicles and 352 were specialized vehicles.

Sales of passenger cars increased by 28%; commercial vehicles increased by 39% and specialized vehicles increased by 17% compared to the previous month. Sales of domestically assembled cars reached 16,174 vehicles, up 30% compared to the previous month and sales of completely imported cars were 13,864 vehicles, up 31% compared to the previous month.