Business
Used car dealerships hit hard by gloomy market
  • | Infonet, dtinews.vn | April 16, 2012 02:45 PM
 >>  Fall in auto sales indicator of consumer confidence

Many retailers of second-hand cars have complained about a sharp fall in revenues as car owners rush to sell.

Dealerships see sharp drop in car sales

Several used car lots have been reporting that cars are sitting on showroom floors for months before being sold.

Most used car lots along Tran Khat Chan, Nguyen Van Cu and Nguyen Chi Thanh Streets, in Hanoi, have been reporting poor sales, pushing many to the brink of going out of business.

Nguyen Ngoc Anh, from the Hanoi-based Hoa Binh Autos, said that he receives a lot of inquiries each day, but the vast majority are from those who want to sell, not buy.

“Economic difficulties, tight monetary policies and recent increases in taxes and fees for cars have all had their effect. 80% to 90% of car owners had to get loans to buy their vehicles. There was a time when we would sell dozens of cars per day, but now were down to one or two. Some days we don't make any sales at all,” Anh said.

Nguyen Thanh Du, a marketing official of Anh Dung Trade Development and Investment Company said blamed the decreased sales on higher fees levied on cars by local authorities. He said that many people who would have bought cars have changed their minds.

"People want to sell these days because of rising taxes and  other fees;" he said.

Because of the tough economic times, many dealerships have had to lay off their employees.

Anh Dung enterprise has just sack two staff. They plan to change their business sphere if the situation will not improve in the time to come as they are finding it difficult to afford current business costs amid gloomy business.

Hoang Cuong from Phu Dat Limited Company, which specialises in imported luxury cars said, “If the situation doesn't improve in the next few months there will likely be a lot of dealerships forced to close shop. I've never seen  such a difficult market.”



Showroom on Tran Khat Chan Street forced to close shop

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