HÀ NỘI — Unlike previous years, this year’s peak season has seen a slowdown in used car sales.

With both the New Year and Lunar New Year (Tết) fast approaching, consumer spending usually picks up, especially on cars, motorbikes and home upgrades.

However, this year, the used car market has fallen into a slump. Many car dealers said that they were just trying to see the year through and avoid losses, hoping for better business next year.

Nguyễn Quốc Anh, owner of Nam Bắc Auto Garage in Hà Nội, said that sales in October were slightly better than the previous month, but it was still the garage’s fifth consecutive month of losses.

"To break even, we needed to sell around 25 cars per month," said Anh.

"We sold about 100 vehicles in the final three months last year. This year, sales has been weak, and we could only hope things would pick up closer to Tết."

Similarly, Nguyễn Xuân Biên, a board member of Bcar Hà Nội, said that the used car market this year has been extremely difficult, showing trends similar to last year.

The company sold 48 cars last month, mostly priced between VNĐ700 million and VNĐ900 million, including models from Toyota, Ford, Mercedes and Mitsubishi.

"Even with that volume, we only covered the cost, with no profit," he said.

The tough economic climate and volatile investment channels had caused consumers to prioritise financial safety and cut back on big purchases, directly impacting used car sales, said Biên.

He predicted the year-end market would be much like last year, far from optimistic.

In southern Việt Nam, the market appeared somewhat more active, with showrooms seeing slightly better sales.

However, profits remain modest due to continued challenges and weaker overall demand compared to previous years.

Hoàng Viết Sơn, owner of Bình Dương Auto Supermarket, told the Báo Xây dựng (Construction) newspaper that at this time, it was easier to sell in the South than in the North.

Northern buyers were hesitant because many used cars were flooded during recent storms. Meanwhile, southern buyers were also cautious. Even though sales were better, many people were holding off on upgrading their cars, said Sơn.

"Our company sold about 50–60 cars last month, and around 20 cars in the first 10 days of this month," he added.

"While we did not lose money, profits were thin due to rising costs."

Many dealers were now selling on social media, which made competition fierce, he said.

Previously, three salespeople could sell 20 cars per month; it took 20 people to sell the same number now, added Sơn.

According to market experts, several factors have contributed to declining demand for used cars.

First, the difficult economic conditions have made consumers hesitant to spend on major purchases, even as the New Year is approaching.

Second, government policies promoting the shift from gasoline to electric vehicles (EVs) are encouraging consumers to choose electric over traditional fuel-powered cars.

In addition, strong promotions from car manufacturers have stimulated demand for new electric vehicles. The EV market in Việt Nam has expanded significantly over the past three years, with hundreds of thousands of units sold. — VNS