Hanoi: used cars selling like hot cakes

17:17' 18/07/2007 (GMT+7)

VietNamNet Bridge – In order to buy a used Toyota Altis manufactured in 2003, a buyer would have to pay $2,000 more than last year. Mr Thong, who is seeking to buy a used car, complained that he could not find a suitable one at this moment. He said cars were cheaper last year, but he did not have enough money then. Several days ago, he contacted the seller of an Altis and agreed to buy it for VND360mil. However, he could not get the car, as the owner had sold it for VND400mil to another client. Meanwhile, used car dealers complain that they do not have cars to sell. Nguyen Minh Tam, the owner of a car salon on Nguyen Khoai street in Hanoi, said that used cars now were 5-10% more expensive as there were not many cars for sale. For example, a Mitsubishi Jolie, which was priced at $18,000 last year, is now selling at $19,000. The models that Mr Thong and others are seeking to buy now are the ones that manufacturers have stopped making, namely Mitsubishi Jolie, Toyota Zace or Daewoo Lanos. Buyers have to purchase used cars because no more new cars of these models are being churned out. Toyota products have been hunted by clients thanks to their good quality and available spare parts. Vu Nam Chung, Director of Nam Chung Automobile Trading Company, said that its turnover was 30% higher than that of the same period of 2006. Every month the company sells 100 units, 30% of which are made by Toyota. “Except for July (lunar calendar), turnover will keep rising from now to the year’s end,” he said. Analysts have said that the used car market has never been as bustling as nowadays. Mr Ha, who is working for Vietnam-Korea automobile garage on Truong Chinh Road in Hanoi, said that 40-50 units were sold every month, much higher than last year’s level, though cars are 10% more expensive. Mr Ha said that a Toyota Altis 2003 version could be bought for $23,000 in 2006, but now it is priced at not less than $25,000. Not only locally assembled, used imports are also being hunted by clients. Several months ago, a Morning SLX 2005 was sold at $16,000, and now the same car could be sold at $17,000 or $18,000. Car dealers say that car purchasing power is increasing. As tax policies have been stabilised, clients have stopped the wait-and-see period, and are seeking to buy cars at this moment. Not anticipating the demand, local automobile joint ventures did not raise their output. (Source: VNE,Viet Nam Net)