The used-car streets in Hanoi, such as Pham Hung, Le Van Luong in Thanh Xuan district, Tran Thai Tong, Thanh Thai and Nguyen Chanh in Cau Giay and Pham Van Dong in Bac Tu Liem, have been quiet, including weekends.

Nguyen Minh Do, the owner of Do Van Auto Salon on Pham Van Dong street, said that sales have been going slowly in the last two months with the number of buyers halved.

“Previously, we could sell 100 cars each month, but now just 1-2 cars a day,” he said. “There are many reasons behind this, including the low sale season and economic difficulties. However, I think the major reason is the expected vehicle registration tax cut by 50 percent."

The proposal on 50 percent tax cut was officially made by the Ministry of Finance (MOF) with an aim to boost the sales of domestically assembled cars.

Meanwhile, Le Minh Hieu, a freelance salesman for some showrooms in Nam Trung Yen area in Cau Giay district, noted that the used-car demand of both sellers and buyers fell dramatically after Tet holiday (February). This is the result of the gloom of the domestic  market for new cars.

“The difficult economic conditions after the pandemic and the lackluster stock market all have made people cancel their car purchase plans,” he explained.

“In previous years, it was easy for us to ‘hunt’ for good products during World Cup and Euro Cup season. But there are very few such products this year. Used-car dealers find it difficult to find cars to buy because of few sellers. Meanwhile, the slow sales may make us incur losses,” he said.

Market needs a push

Used car buyers are also expecting a final decision on tax cut. Meanwhile, many people are still wavering between buying a brandnew or a used car.

Vu Van Minh, 38, in Cau Giay district, said he is wavering between buying a 2022 Hyundai Santa Fe Premium at nearly VND1 billion, or a new car.

“If the government approves the 50 percent tax cut, a brandnew Santa Fe can be bought at VND1.2 billion. I would rather spend VND200 million more to own a new car, than save VND200 million and own a used car,” he explained.

Nguyen Quoc Khanh, owner of a 668 Auto, said if buying luxury cars, buyers can save up to VND50-70 million thanks to the tax cut.

Hoang Hiep