Distressed Market: Current State of Used-Car Marketplaces in Vietnam

A report by BlueWeave Consulting estimates that the size of the used car market in Vietnam will reach 7.87 billion USD in 2022 and 23.12 billion USD by 2029.

These statistics suggest that the domestic used car market is expected to grow considerably in the long term; in fact, the market is currently booming, in sharp contrast to the new car market.

So, what are the “big players” in the used car sector doing to stand out from their direct competitors and from the group of customers who trade directly with each other?

AnyCar narrows its market share

AnyCar used to be quite a prominent name in the used car market, but at present this brand is facing many problems, especially following the incident in July 2023 when it was accused of selling a Honda City with its mileage rolled back by 120,000 km.

Any Car’s scandal involving a Honda City with its odometer rolled back by 120,000 km. Photo: Facebook.

After purchasing the Honda City with 66,276 km on the odometer from AnyCar, the vehicle owner took it to the manufacturer and discovered that the actual mileage was almost 184,500 km. At that time, Ms. Nguyen Thi Thanh – the manager of AnyCar Long Bien – stated that there was no way that AnyCar had imported the car and then rolled back the odometer.

Following this incident that eroded trust, AnyCar is now rarely mentioned.

AnyCar’s showroom directory now only lists a single location in Hanoi; the showroom on Luong Dinh Cua Street in Ho Chi Minh City has been “silently” removed from the list.

In recent days, news that AnyCar’s only remaining showroom in Long Bien (Hanoi) has closed has been circulating on many forums.

AnyCar posted on its official Facebook page that this information is not true, stating that the company is adjusting its business and will continue to operate normally.

Anycar announced on its official Facebook page that it is “adjusting its business model”.

On the morning of March 21, a Tri Thuc & Znews reporter reached out to AnyCar to verify this information but did not receive a response.

Cho Tot Xe expands its business model

After approximately seven years in the market, Cho Tot Xe can be considered one of the largest used car marketplaces in Vietnam. According to a 2021 study by Kantar Research, it is the platform most frequently mentioned when searching for used cars to buy/sell.

This company recently opened a showroom in Ho Chi Minh City; this strategy allows customers to view cars in person at Cho Tot Xe’s showroom in addition to searching online, making it easier to assess the quality of the vehicles.

In an interview with the press, Mr. Trieu Khac Thiep – Director of Cho Tot Xe – stated: “In the near future, we will accelerate the expansion of our Official Mall model with a network of over 1,000 Cho Tot Xe partner stores nationwide”.

Cho Tot Xe is expanding into a physical store model.

The expansion from an online platform into a physical store is not entirely new in the used car market. In the Southeast Asian region, the Carousell Group has implemented this model and achieved great success in the two countries of Malaysia and Singapore.

In addition to expanding its business model, Cho Tot Xe is also attracting customers who are buying used cars by offering various policies such as comprehensive vehicle inspections, a one-year manufacturer’s warranty or 25,000 km of use for seven categories, and support for name changes and borrowing capital.

‘Newcomer’ Carpla grabs attention

In 2023, the market witnessed the emergence of Carpla – a used car buying and selling company founded by Savico and VETC. Despite being a ‘newcomer’ in the used car market, Carpla has attracted attention by opening showrooms in all three regions, the latest one being in Can Tho City.

Compared to the “veteran” Cho Tot Xe, Carpla has an advantage due to its access to human resources from Savico – one of the largest car distributors in Vietnam. Carpla shared that the company has a team of more than 1,500 consulting engineers from Savico’s system.

Carpla is a noteworthy “newcomer” in the used car buying and selling market in Vietnam.

Similar to many other used car marketplaces on the market, Carpla also offers its own certificate for vehicles sold from its platform, which includes elements related to transparency, a commitment that the car has not been in a collision or flooded, etc.

Notably, Carpla also has a policy of returning the car for a refund after a five-day test drive. This is considered a rare policy in the used car market.

According to the announced plan, Carpla will soon expand its ecosystem by providing additional experiences related to used cars, such as assisting customers with vehicle registration, vehicle valuation services, and auction services.