Many People Prefer Buying Used Cars: Here’s Why

In today’s fast-paced world, owning a car has become a necessity for many people. However, the decision to buy a new car versus a used car is a topic of debate for many. While some may be inclined towards buying a brand new car, several individuals are now considering the option of purchasing a used car. In this article, we will explore the reasons behind this growing trend.

Lower Cost, Higher Savings

One of the main factors driving people towards buying used cars is the significant cost savings. An individual named Quoc Binh, who works in Nam Tu Liem district, shared his experience, stating, “With the same car model, I can save up to 200 million VND by purchasing a used car. In the current economic recession, this money can be invested in other channels to generate profits and provide financial stability. I plan on buying a new car once my business shows positive signs.”

Market Trends and Government Incentives

Apart from personal financial considerations, market trends and government incentives also play a role in the decision-making process. Car experts believe that the beginning of the year is typically a low season for the automobile market. Additionally, the recent expiration of the government’s 50% registration fee discount for domestically assembled cars has further dampened the demand for new cars.

Decreased Sales Figures

According to the Vietnam Automobile Manufacturers Association (VAMA), car sales figures have witnessed a significant decline. In February, VAMA-member companies sold just over 11,600 cars, marking a 40% decrease compared to January and a 50% decrease compared to the same period in 2023. Furthermore, Hyundai, a non-VAMA member, reported a 62.8% drop in sales compared to the same period last year.

Preferences and Market Analysis

Out of the total cars sold in February 2024, 9,666 were passenger cars, while nearly 5,000 were commercial vehicles, and 56 were specialized vehicles. When considering the cumulative figures for the first two months of the year, VAMA and Hyundai sold approximately 36,500 cars, reflecting a 26% decrease compared to the same period in 2023. These sales figures are the lowest recorded in the past three years.

Factors Affecting Sales

The decline in sales can be attributed to a shorter operating period for dealers due to the lunar New Year holidays. However, the primary reason for this decline is the current economic difficulties, leading individuals to tighten their expenses. Despite optimistic predictions, it is unlikely that the buying power will reach the expectations of car dealers in the near future.

In conclusion, the decision to buy a used car instead of a new one has gained popularity due to the significant cost savings and the prevailing market trends. Whether it is to save money or to hedge against economic uncertainties, many individuals are now opting for used cars. As the automotive industry continues to evolve, it will be interesting to see how these changing preferences shape the future of the market.

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