Hanoi (VNS/VNA) - The market for used cars in 2025 is expected to experience headwinds amid rising sales of new cars and electric vehicles (EVs), according to experts.
Government incentives and policies aimed at promoting the purchase of new vehicles may draw consumers away from used cars. Policies include tax breaks, rebates or lower financing rates, and potential registration fee reductions for domestically manufactured vehicles, which could make new cars more attractive financially.
This would shift consumer interest towards new cars, especially in segments priced over 800 million VND (32,000 USD), putting still more pressure on the used car market.
The increasing popularity of EVs is also expected to intensify competition. As more consumers opt for EVs, the demand for traditional used cars could decline. A clear differentiation in the used car market observed in 2024 also suggests that consumers may be more discerning, leading to a competitive landscape where only well-maintained used vehicles or very popular car models may retain their value.
The growing popularity of electric vehicles (EVs) will add another layer of competition. As more consumers consider EVs, used cars, particularly those above the 800 million VND mark, may face significant challenges in maintaining their market positions.
The segment of used cars priced under 500 million VND is expected to thrive due to affordability and high demand from first-time buyers. Conversely, higher-priced used cars may experience price reductions to remain competitive with new and electric vehicles.
In addition, the trend of purchasing used cars online is anticipated to accelerate. Platforms like Cho Tot Xe, Bonbanh and Oto.com.vn will continue to provide services that enhance buyer and seller trust, including vehicle inspections, financing options and insurance.
The availability of comprehensive information and services will facilitate safer transactions, appealing to a growing segment of consumers who prefer convenience.
In 2024, the mid-range used car segment (priced between 500 million VND and 1 billion VND) showed strong liquidity, while lower-priced models under 500 million VND maintained robust demand. However, sales of more expensive used cars lagged as consumers shifted towards new models.
Despite fluctuations in demand, used car prices remained relatively stable, with only minor decreases noted in the fourth quarter of 2024. High purchase prices from dealers have contributed to this stability.
Popular models included a range of vehicles from A-class hatchbacks to D-class SUVs, reflecting a diverse market catering to various consumer preferences.
Experts noted that as the used car market heads into 2025, it will be crucial for stakeholders to adapt to changing consumer behaviours and policies. The interplay between used cars, new cars and EVs will shape market dynamics, while online platforms will continue to play a pivotal role in facilitating transactions and enhancing market transparency.
The ongoing adjustments in pricing and consumer preferences will require strategic responses from dealers and manufacturers alike./.
