The recent government decree reducing registration fees makes the used car market more exciting.
Under Decree 45/2011/ NDCP which took effect on April 2, car consumers pay 10 percent less than before to register a second-hand car. Those who buy a new car can save 5 percent.
The new car market will not be influenced much by the decree, as the 15 percent fee is only good news for consumers in the Hanoi market, where it was previously 20 percent.
In Ho Chi Minh City, the rate was already 15 percent and in others it was 10 percent. Moreover, the Hanoi market only accounts for 12-15 percent of car purchases.
The used car market is heating up thanks to the decree, which reduced the registration fee for used cars from 12 percent to 2 percent.
Visitors to used car showrooms have increased significantly, according to Tran Hai Duong, salesman in a Hanoi branch of Vietnam Anycar Company, which trades used cars.
Dương says his customers were looking to buy used car models such as Huyndai Getz, Avante, Kia Morning and Forte, which cost 300-600 million VND (15,000-30,000 USD).
The decree will not positively affect the used car market, insiders predict. Before, due to the high registration fee for used cars, both sellers and buyers often agreed not to change their ownership on paper – making it difficult for authorities charged with regulating vehicle ownership.
But now that the fee to register a used Kia Forte 2011 is 10 million VND (500 USD) instead of 60 million VND (3,000 USD), many buyers are paying for ownership papers.
Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association, said that decree was not only warming up the local car but also helped authorities manage the vehicles.
Even more importantly, if more people registered their cars, the national tax could bring in more capital, she said.-VNA
Under Decree 45/2011/ NDCP which took effect on April 2, car consumers pay 10 percent less than before to register a second-hand car. Those who buy a new car can save 5 percent.
The new car market will not be influenced much by the decree, as the 15 percent fee is only good news for consumers in the Hanoi market, where it was previously 20 percent.
In Ho Chi Minh City, the rate was already 15 percent and in others it was 10 percent. Moreover, the Hanoi market only accounts for 12-15 percent of car purchases.
The used car market is heating up thanks to the decree, which reduced the registration fee for used cars from 12 percent to 2 percent.
Visitors to used car showrooms have increased significantly, according to Tran Hai Duong, salesman in a Hanoi branch of Vietnam Anycar Company, which trades used cars.
Dương says his customers were looking to buy used car models such as Huyndai Getz, Avante, Kia Morning and Forte, which cost 300-600 million VND (15,000-30,000 USD).
The decree will not positively affect the used car market, insiders predict. Before, due to the high registration fee for used cars, both sellers and buyers often agreed not to change their ownership on paper – making it difficult for authorities charged with regulating vehicle ownership.
But now that the fee to register a used Kia Forte 2011 is 10 million VND (500 USD) instead of 60 million VND (3,000 USD), many buyers are paying for ownership papers.
Nguyen Thi Cuc, President of the Vietnam Tax Consulting Association, said that decree was not only warming up the local car but also helped authorities manage the vehicles.
Even more importantly, if more people registered their cars, the national tax could bring in more capital, she said.-VNA
