The Ultimate Guide to Buying a Car: New or Pre-Owned?

The used car market is facing challenges in price adjustments. Photo: Đ.P.

Since the beginning of the year, Vietnam’s automotive market has witnessed significant fluctuations as sales figures for many brands have plummeted. To improve their sales performance, manufacturers have launched a series of promotions and discounts over the past four months.

In contrast to the bustling new car market, the group of used cars has not seen much change in prices.

New car prices hit rock bottom

Just in the first quarter, many models had their prices adjusted two to three times to compete with rivals. The most noticeable example is Mazda, as this Japanese brand continuously announced changes in the listed prices of models such as the Mazda2, Mazda3, CX-5, CX-3, and CX-30.

Many former segment leaders, such as the Hyundai Santa Fe, Toyota Vios, and Mazda CX-5, are now being deeply discounted by dealerships to attract customers. The discount amount varies from a few million to several tens of millions of dong, depending on the program and the car model.

Hyundai Santa Fe. Photo: TC Group.

For instance, the Toyota Vios is currently offered with two promotions from the manufacturer and the dealership since the beginning of April. After the discounts, the price of this B-segment sedan ranges from 448 to 535 million dong, depending on the version and dealership.

Notably, some 2022-2023 VIN number models are being heavily discounted by the manufacturers, up to hundreds of millions of dong. For example, to clear inventory for the upcoming 2024 VIN number batch, some Hyundai dealerships have reduced prices by about 120 million dong for the remaining 2023 VIN number Santa Fe models in the market.

Thus, after applying the discounts, the price of the 2023 VIN number Hyundai Santa Fe ranges from 900 million to one billion dong, depending on the version.

Used car prices remain high

While new car prices continue to drop, ‘lightly-used’ car prices in the secondary market remain unchanged and even slightly increase. Notably, some used car models now have prices almost equivalent to a new car or even tens of millions of dong more expensive.

Specifically, on a specialized used car trading website, a 2023 Toyota Vios 1.5E CVT is currently offered at 499 million dong. According to the advertisement, this Vios has an ODO of 11,000 km, has never been in an accident, and has a full warranty history from the manufacturer.

Toyota Vios “lightly-used” on forums is priced similarly to a new car. Photo: TMV.

Compared to the new Vios, this ‘lightly-used’ car is about 10 million dong more expensive, excluding promotions.

The 2023 Hyundai Accent 1.4AT Special Edition, which has been used, is also advertised at a price ranging from 499 to 515 million dong. Meanwhile, some dealerships are selling the new 2023 Accent version with similar specifications for 475 to 500 million dong.

Another example is the Hyundai Santa Fe, a large SUV often traded in the secondary market at a higher price than a new car. According to a survey by Tri Thuc – Znews, the price difference between new and used cars can range from 40 to 90 million dong, depending on the version.

Mr. Quoc Hung in Hanoi shared that his family changed their decision to buy a used car after a week of researching prices. Initially, Mr. Hung intended to buy a used SUV to serve his family and generate additional income. However, after researching, he decided to buy a new car because there was not much difference in price.

“My wife and I also asked around at several shops and online channels, but we found that the prices were not much different. In many cases, used cars are even more expensive than buying new ones,” Mr. Hung added.

Used car prices are unlikely to decrease

In an interview with Tri Thuc – Znews, Mr. Tien Hung, the owner of a used car business in Cau Giay, Hanoi, shared that it is very challenging for sellers to adjust used car prices.

According to Mr. Hung, most used car sellers bought their vehicles at high prices, and some car owners even had to pay extra fees during the period of scarce supply. When they want to resell their cars, no one wants to sell at a significant loss.

As intermediaries between customers and used car owners, used car dealerships find it challenging to convince sellers to lower their prices too much, nor can they suggest that buyers pay a higher price. Therefore, during this time, dealership owners often find themselves in a dilemma.

Used car dealerships face challenges in price adjustments. Photo: Dinh Thong.

“No one wants to sell their used car at a significant loss, and no buyer will agree to buy a used car at the same price as a new one. As intermediaries, we can only try to adjust the price to make it reasonable, but it is difficult to keep up with the market fluctuations,” shared Mr. Hung.

As manufacturers continue to offer deep discounts to stimulate consumption, new car prices are expected to drop further in the next one to two months. In addition, the Government has announced a fee reduction program, which is expected to be implemented soon in the second quarter.

If this happens, the secondary car market will face even more challenges because, at a time when new car prices have dropped significantly, consumers will have less demand for used cars if there is not a substantial price difference.