The Car Buyer and Seller’s Dilemma: Will There Be a Reduction in Registration Fees?

The entire Vietnamese automotive market is eagerly anticipating the fourth round of registration fee incentives. After a series of proposals since the beginning of the year, a policy to reduce registration fees for domestically assembled cars is likely to take effect in August.

Administrator

3 September, 2024

Despite multiple proposals since the beginning of the year, the fourth installment of registration fee incentives for domestically assembled cars in Vietnam has yet to be officially implemented. At various points, both sellers and buyers in the Vietnamese car market were convinced that July would mark the start of this policy, only to be caught off guard and left waiting for the fee reduction.

Car Dealers Celebrate and Worry Awaiting Fee Reduction

Sharing with Tri thức – Znews, Mr. Phạm Trí, a sales consultant at a Hyundai dealership in the southern region, revealed that business in the first half of the year has been challenging. This has prompted some of his colleagues to consider finding other jobs instead of persevering in the car sales industry.

“Therefore, when we heard about the proposal to implement the fourth registration fee incentive for domestically assembled cars in Vietnam, my colleagues and I were very excited,” said Mr. Phạm Trí.

The sales consultant also mentioned that when news emerged about the possibility of the fourth fee incentive taking effect in July, his dealership’s sales team advised customers to make a deposit to receive a “double incentive.”

“Typically, when the government’s registration fee reduction policy comes into force, the dealership’s promotions will be adjusted to offer less attractive discounts. So, sales consultants encourage customers to make a deposit to secure the current dealership and manufacturer promotions and wait for the registration fee reduction to take advantage of the additional savings,” Mr. Phạm Trí explained.

Many sales consultants invite customers to book early to receive double incentives. Illustration photo: Phương Lâm.

However, it wasn’t until the end of June and early July that the Ministry of Finance announced they were drafting a proposal for a registration fee incentive for domestically assembled cars, expected to take effect from August to the end of January 2025. The delay in implementing the registration fee incentive policy left many sales consultants, including Mr. Phạm Trí, facing questions from their customers.

“Many customers blamed us for providing inaccurate information, affecting their car-buying plans. Some customers who had made deposits even threatened to cancel them and abandon their purchase plans because they believed the fourth registration fee incentive would not be implemented. But at this point, sales consultants are in the same boat as customers, relying on unofficial information and awaiting the official announcement of the fee reduction,” Mr. Phạm Trí lamented.

Meanwhile, a sales consultant at a Toyota dealership in Ho Chi Minh City said that most customers have not made deposits yet and are patiently waiting for the registration fee incentive to take effect before making a purchase decision.

“Recent sales have not been very encouraging as most customers are ‘waiting’ for the registration fee incentive,” the consultant shared.

Customers Await Fee Reduction to Finalize Car Purchases

Mr. Đình Hải, a 29-year-old from Ho Chi Minh City with a budget of 600 million VND, is considering a sedan in the B-segment, such as the Toyota Vios, Hyundai Accent, Mazda2, or Mitsubishi Attrage, as a family vehicle.

“I’ve heard about the potential registration fee incentive for domestically assembled cars. If implemented, locally assembled cars like the Vios and Accent will be eligible for a 50% reduction in registration fees. However, at the moment, imported cars like the Mazda2 and Attrage are also offering promotions equivalent to a 50% registration fee discount, so there’s no real difference in incentives between assembled and imported cars,” said Mr. Đình Hải.

Mr. Đình Hải also mentioned that sales consultants are inviting him to book a car in July to receive a “double incentive,” which includes retaining the current dealership promotion and receiving a future 50% registration fee discount as per the government’s policy.

However, Mr. Hải is waiting for the official announcement of the registration fee reduction before making a deposit to purchase a car.

Hyundai Accent is one of the domestically assembled car models in the Vietnamese market. Image: TC Motor.

As mentioned earlier, the Ministry of Finance has just proposed a 50% registration fee incentive for domestically assembled cars in Vietnam, expected to take effect from August and last for six months. Thus, the Vietnamese car market is likely to experience the fourth round of registration fee incentives for domestic cars, with the hope of boosting consumer demand.

The first two registration fee incentives in 2020 and 2022 brought positive signals to the market, while the third round, implemented from July 2023 to December 2023, was less effective. Nonetheless, according to most sales consultants, the registration fee incentives will somewhat ease customers’ concerns and improve the market’s purchasing power in the remaining months of 2024.

“At the moment, both salespeople and customers are eagerly awaiting the official announcement of the 50% registration fee incentive for domestically assembled cars,” said sales consultant Phạm Trí.

Car Dealers Celebrate and Worry Awaiting Fee Reduction

Customers Await Fee Reduction to Finalize Car Purchases

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