The first six months of 2025 have been especially challenging for Vietnam’s used car market. Despite steep price reductions, sales remain sluggish, and many dealerships have been forced to cut losses just to recoup capital.
Famous used car salons in Hanoi have been noticeably quiet in recent months. Photo: Hoang Hiep
Barely 3–4 cars sold per month, constant losses
The used car market saw notably low activity during the first half of the year, with weak purchasing power and stagnant transactions. Many showrooms operated minimally, waiting for signs of a rebound in consumer demand.
According to a VietNamNet survey, major used car showrooms in Hanoi reported a sharp decline in sales compared to the same period last year. While a few popular models like the diesel Hyundai Santa Fe, older Toyota Vios and Innova versions, and the Mitsubishi Xpander still attracted buyers, the vast majority of models sat unsold.
Pham Van Hung, owner of a used car salon on Le Van Luong Street in Hanoi’s Thanh Xuan District, shared: “In previous years, even during slow months we could sell 10 to 15 cars. This year, there were months when we only sold 3 or 4.”
“Customers are reluctant to inquire. Some cars have sat in the showroom for two to three months without a buyer. We’re anxious, but there’s little we can do. If we keep the price, we can’t sell. If we want to sell fast, we have to take a loss,” he added.
At another used car dealership on Pham Van Dong Street (Bac Tu Liem District, Hanoi), the outlook was similarly bleak. Vu Hoang, the owner, said the market was currently at its lowest point. Most customers are hesitant, and only the steepest discounts would entice them.
“Buyers are just browsing to compare prices. Some even offer tens of millions of dong below our cost price. We’re forced to accept losses just to free up capital and space,” he told VietNamNet.
Dealers say even the popular sub-500 million VND ($19,600) segment has stalled, despite being the traditional choice for first-time buyers.
“Previously, used cars were the go-to for budget-conscious shoppers. But now new cars are discounted heavily, and buyers get incentives like waived registration fees. Many opt for new vehicles instead,” said Nguyen Duc Long, owner of a used car shop in Hanoi’s Cau Giay District.
Dealers across Hanoi agree that the first half of 2025 has been the most difficult and “forgettable” period in recent memory - even worse than the peak of the COVID-19 pandemic from 2020 to 2022. Meanwhile, overhead costs like rent, labor, and loan interest remain high, pushing dealers to their limits.
Used car market unlikely to rebound in the near term
The first half of 2025 has been a “forgettable” time for Vietnam’s used car dealers. Photo: Ngo Minh
Experts cite three main reasons for the market downturn: fierce competition from new cars, tightened consumer spending, and stricter vehicle inspection and emissions regulations.
Firstly, pressure from the new car market is undeniable. Since the beginning of the year, automakers like Toyota, Mazda, Hyundai, KIA, Mitsubishi, Ford, and Chinese brands have rolled out aggressive discounts, tax waivers, and financing deals.
At times, entry-level B-segment sedans have been offered with on-road prices as low as 400 to 500 million VND ($15,700 to $19,600). With such competitive pricing, even low-cost used cars can no longer command premium prices.
Moreover, many consumers are now skipping used cars altogether, upgrading directly from motorbikes to new cars for peace of mind.
Secondly, the sluggish economy has made buyers more cautious, especially with used vehicles that carry higher risk. Many are delaying purchases until the end of the year, hoping for more promotions.
Additionally, new emission and vehicle inspection regulations are deterring buyers. Older vehicles may need costly part replacements or major maintenance to pass inspection, adding further financial burden.
Dealers predict that the market will remain quiet at least until the end of the "ghost month" (the seventh lunar month), which ends in mid-September. During this time, Vietnamese consumers traditionally avoid major purchases like cars.
Despite the bleak first half, many dealers remain optimistic about the final quarter of the year. Demand typically spikes as consumers prepare for Lunar New Year, sentiment stabilizes, and interest rates may ease.
With abundant supply, reasonable prices, and the local tradition of "having a car by year’s end," many believe the market will bounce back strongly.
“This period is a real test for car dealers. Those with deep pockets, resilience, and a solid reputation will survive. But those relying on fast turnover and short-term gains may struggle,” commented one expert in Vietnam’s used car market.
Vietnamnet.vn
Podcast
.svg){kind=icon}
