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Used car business seen picking up
2012-0312
Auto manufacturers and traders have opened more used car dealerships in anticipation of high market demand.
The used car market is characterized by haphazard development with buyers often placed in a disadvantageous position due to lack of guarantees and warranty. So several companies have entered this market segment in a more professional way by offering vehicle inspection and after-sale services.
Used car dealerships are aware that newly licensed drivers tend to buy old cars as they are afraid of owning new cars due to potential crashes, paying a high price for a brand new car or servicing a loan with a high interest rate.
Automakers consider secondhand-car business a chance of selling new cars as there are many car owners wishing to exchange for brand new models but they do not know how much their own cars cost.
Toyota Motor Vietnam (TMV) will expand its used car business in the country with a series of used car outlets to be established at its dealerships nationwide after the opening in mid-2010 of the Used Car Center at Toyota East Saigon Joint Stock Company.
Nguyen Khoa, director of the used car center, expressed optimism about the future growth of the secondhand car market, especially at a time when new vehicle registration fees are getting higher. Its business has grown 20% since the center’s launch, he said.
In his observation, the demand for used cars in HCMC is surging as more youngsters are learning to drive and old vehicles can be immediately put into use without having to wait for the number plate and registration.
Despite forecasts that auto sales in the country this year would continue to dip, Khoa believed the used car segment could edge up an impressive 15-20%.
TMV’s used cars can still compete well with cheap cars made by South Korean firms, Khoa said.
Though Mercedes-Benz Vietnam is known as a luxury car maker in Vietnam, it has recently joined the used car segment by launching Mercedes-Benz Auto Service and Trade Center on Vo Van Kiet Boulevard in HCMC’s Binh Tan District. The new facility was invested by its dealer Hang Xanh Motors Service Joint Stock Company (Haxaco). This center is the only service facility in the country where used Mercedes-Benz autos are traded.
Earlier, Audi Vietnam and Euro Auto, distributors of BMW, also launched their second-hand car services. Meanwhile, Anycar Vietnam is developing a network of certified pre-owned car outlets selling all locally assembled auto brands.
Auto traders see the used car market full of potentials because there are numerous average-income people in need of secondhand vehicles. However, inspection and warranty services for used cars are still absent, thus vexing buyers.
Those seeking to buy used cars often ask technicians or people with good knowledge of autos for help; otherwise, they may buy malfunctioning vehicles. Therefore, seeing this matter, auto manufacturers and traders are willing to provide car inspection and warranty services to increase their competitiveness.
Used cars supplied by TMV sales agents to the Used Car Center at Toyota East Saigon must be checked and evaluated by Toyota engineers. Vehicles meeting the requirements will be granted quality certificates. Especially, customers are offered after-sale services with qualified warranty and maintenance.
As a pioneer in the used car market, Ford Vietnam said the quality of used vehicles must be tested through an assessment of 162 parts. This way makes it possible for specialists to exactly assess the state of the car and repair it if necessary to ensure the best operating conditions possible before delivery to consumers.
Similarly, a representative of Anycar said used cars would be strictly inspected and granted quality certificates before they were put up for sale. The firm will not sell disqualified vehicles.
Meanwhile, Haxaco of Mercedes-Benz Vietnam provides warranty of one year or 20,000 kilometers for cars that have been in use for up to five years or 100,000 kilometers since their first registrations. Customers will be given vehicle history, engine performance certificate and others.
However, some traders said vehicle inspections might push up prices of used cars. The best selling used cars are those priced from VND400-600 million per unit.
The used car market is characterized by haphazard development with buyers often placed in a disadvantageous position due to lack of guarantees and warranty. So several companies have entered this market segment in a more professional way by offering vehicle inspection and after-sale services.
Used car dealerships are aware that newly licensed drivers tend to buy old cars as they are afraid of owning new cars due to potential crashes, paying a high price for a brand new car or servicing a loan with a high interest rate.
Automakers consider secondhand-car business a chance of selling new cars as there are many car owners wishing to exchange for brand new models but they do not know how much their own cars cost.
Toyota Motor Vietnam (TMV) will expand its used car business in the country with a series of used car outlets to be established at its dealerships nationwide after the opening in mid-2010 of the Used Car Center at Toyota East Saigon Joint Stock Company.
Nguyen Khoa, director of the used car center, expressed optimism about the future growth of the secondhand car market, especially at a time when new vehicle registration fees are getting higher. Its business has grown 20% since the center’s launch, he said.
In his observation, the demand for used cars in HCMC is surging as more youngsters are learning to drive and old vehicles can be immediately put into use without having to wait for the number plate and registration.
Despite forecasts that auto sales in the country this year would continue to dip, Khoa believed the used car segment could edge up an impressive 15-20%.
TMV’s used cars can still compete well with cheap cars made by South Korean firms, Khoa said.
Though Mercedes-Benz Vietnam is known as a luxury car maker in Vietnam, it has recently joined the used car segment by launching Mercedes-Benz Auto Service and Trade Center on Vo Van Kiet Boulevard in HCMC’s Binh Tan District. The new facility was invested by its dealer Hang Xanh Motors Service Joint Stock Company (Haxaco). This center is the only service facility in the country where used Mercedes-Benz autos are traded.
Earlier, Audi Vietnam and Euro Auto, distributors of BMW, also launched their second-hand car services. Meanwhile, Anycar Vietnam is developing a network of certified pre-owned car outlets selling all locally assembled auto brands.
Auto traders see the used car market full of potentials because there are numerous average-income people in need of secondhand vehicles. However, inspection and warranty services for used cars are still absent, thus vexing buyers.
Those seeking to buy used cars often ask technicians or people with good knowledge of autos for help; otherwise, they may buy malfunctioning vehicles. Therefore, seeing this matter, auto manufacturers and traders are willing to provide car inspection and warranty services to increase their competitiveness.
Used cars supplied by TMV sales agents to the Used Car Center at Toyota East Saigon must be checked and evaluated by Toyota engineers. Vehicles meeting the requirements will be granted quality certificates. Especially, customers are offered after-sale services with qualified warranty and maintenance.
As a pioneer in the used car market, Ford Vietnam said the quality of used vehicles must be tested through an assessment of 162 parts. This way makes it possible for specialists to exactly assess the state of the car and repair it if necessary to ensure the best operating conditions possible before delivery to consumers.
Similarly, a representative of Anycar said used cars would be strictly inspected and granted quality certificates before they were put up for sale. The firm will not sell disqualified vehicles.
Meanwhile, Haxaco of Mercedes-Benz Vietnam provides warranty of one year or 20,000 kilometers for cars that have been in use for up to five years or 100,000 kilometers since their first registrations. Customers will be given vehicle history, engine performance certificate and others.
However, some traders said vehicle inspections might push up prices of used cars. The best selling used cars are those priced from VND400-600 million per unit.
Source: SGT
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