The car market is quiet, even with huge promotions, it is still difficult to attract car buyers.

In the context of a sharp decline in car purchasing power, most car companies in the market have simultaneously launched many promotional programs. However, records at many showrooms in Nghe An show that the number of customers visiting and "paying money" is still quite modest.

A car dealership in Vinh Phu ward still has a large number of new cars. Photo: Van Truong

Huge promotion, customers still hesitate to open their wallets

On July 14, at a car showroom in Vinh Phu ward, most customers came mainly to have their cars serviced, while the parking lot still had many new cars that had not been sold. A sales staff said that many car models were being deeply discounted, such as the SUV line with a listed price of 518 million VND, now discounted to 460 million VND. "This year's discount is quite attractive, but customers are still very cautious," the staff shared. Standing next to him, a customer expressed: "I just came to consult, I have no intention of buying right now, because car prices seem to be continuously decreasing."

The same situation is happening at some other car showrooms. Despite applying a series of incentives from direct discounts of 10 - 80 million VND, giving away physical insurance, accessory packages such as bed liners, heat-insulating film, dash cams, etc., the number of actual buyers is still not much. Even the best-selling car line of the American brand in Vietnam is being deeply discounted according to each production version, but according to dealers, the market is still quite quiet.

Despite offering many promotions, the car dealership in Vinh Phu ward is still empty of customers. Photo: Van Truong.

“The constant change in car prices makes me hesitate, not knowing whether to buy now or wait for a better deal,” said Mr. Le Van Tam (Truong Vinh ward) - a customer who is looking for a 7-seater car. The current hesitant and “timid” mentality of consumers is making it difficult for car companies to close orders.

In fact, information about the possibility of reduced import tax on US cars only has a small impact on the market in the short term, because the number of cars imported directly from the US is still limited, mainly high-end cars such as Jeep, Ram... which are not popular in Vietnam. Some dealers said that even when the tax is 0%, the selling price of these car models is still high (about 3.6 - 4 billion VND), not suitable for the financial capacity of the majority of domestic consumers.

An electric car brand is distributed in Nghe An but the number of buyers is still modest. Photo: Van Truong.

In the electric car segment, the market has shown more positive signs but is also clearly differentiated. Chinese electric cars are reasonably priced but are limited by the lack of charging stations, causing low consumption. Meanwhile, electric car models of domestic brands have recorded quite good purchasing power thanks to a wide network of charging stations. A dealer employee said that an average of 2-3 cars are sold each week.

Used car market is gloomy

No longer as vibrant as previous years, the used car market in Nghe An is falling into a prolonged slump. Records at many showrooms show that a number of "used" cars - cars that have only been used for 1-2 years - are still waiting for customers, even though their appearance and quality are almost like new cars.

A used car showroom in Nghe An still has many unsold cars. Photo: Van Truong.

The owner of a used car showroom in Truong Vinh Ward shared: “Car models manufactured in 2023 - 2024, even though they have run less than 20,000 km, are still of little interest to customers because new cars are now being heavily discounted. "Super-used" used cars no longer have a competitive advantage. If in the past they could sell 10-15 cars per month, now there are months when they can only sell 3-4 cars."

Weak purchasing power also makes used car prices no longer as stable as before. According to the business community, sellers must accept deep discounts if they want to "close the deal", while buyers are increasingly cautious, only willing to pay when they see a significant difference between new and used cars. Only a few car models famous for their durability and fuel economy still have certain transactions; or 3-5 year old pickup models, which are popular in business, keep their prices quite stable.

The continuous sharp decline in new car prices in recent times is pushing used car businesses into a risky situation. Talking to reporters, the owner of a used car dealership in Quynh Luu commune said: "As soon as we imported the cars and had not yet had time to sell them, the company adjusted the price sharply, making the used car prices no longer attractive." In that situation, if the seller tries to maintain the price, there will be no customers, but if they reduce the price deeply, they will have to accept less profit.

The owner of this facility cited that more than a month ago, the facility imported a 2024 Mazda CX-5 Deluxe model, with only a few miles on the clock. However, just a few days later, THACO suddenly reduced the price of the new CX-5 model by up to 50 million VND, causing many customers to choose new cars instead of used ones. "In the end, we had to accept a "loss" of more than 30 million VND to sell the car early," the owner shared.

Not only is the used car market under pressure from new car prices, it is also facing technical barriers. New regulations on emission testing and strict registration are making it difficult for older cars to circulate, forcing owners to invest in maintenance costs and replacement parts if they want to sell or continue using them. This makes consumers even more cautious in deciding to buy used cars.

Worried about difficulty in selling, some used car showrooms in Yen Thanh commune do not dare to import more cars. Photo: Van Truong.

The difficult economic situation and the impact on people's income have also caused many people to postpone their car buying plans. "I'm waiting until the seventh lunar month to decide, maybe there will be more good incentives then," said a customer. Used car dealers also admit that the market is unlikely to be active again until the end of the "ghost month", which is around mid-September.

On online trading platforms such as Cho Tot Xe, Oto.com.vn, Bonbanh..., used car prices have also been adjusted down significantly compared to before to attract customers, but the number of transactions has not improved much. Many showrooms have been in a state of prolonged absence of customers.

Experts say that in the coming time, the automobile market will continue to face many difficulties. The reasons come from declining purchasing power, cautious consumer psychology in the face of economic fluctuations, while car prices, although adjusted, are still not attractive enough to stimulate strong demand.

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Source: https://baonghean.vn/thi-truong-o-to-tram-lang-khuyen-mai-khung-van-kho-keo-khach-mua-xe-10302407.html