Second-hand motorbike shops in HCM City are facing a slump following the newly adjusted decree 71 to increase the fine on owners of unregistered old vehicles.
Second-hand motorbike shops hit hard times
Those who buy second-hand vehicles must complete procedures to have their name included on the registration documents. Those who fail to complete the process will be fined from VND6-10 million (USD287.63-479.38) per car and VND1 million (USD47.93) per motorbike or other motorised vehicle.
Streets such as Luy Ban Bich, Thoai Ngoc hau, Ba Hom, Tinh Lo 10 or Phan Dang Luu, that specialise in the trade have seen less sales.
Phan Hiep Phuoc, a second-hand motorbike shop owner on Tinh Lo 10 Street, Binh Tan District said, "Now customers want registration papers. But doing the paper work is complicated and may take the whole day. And add VND5 million onto the cost of a motorbike."
Nguyen Thi Van, another owner on Luy Ban Tich Street has similar experience, "Our sales have gone down even though we work harder. We may even have to close the shop."
According to the shop owners, in the past they have often ignored the proper transfer vehicle ownership process, their customers were just given the original owners' vehicle registration papers and a written paper from the shop. Because of such simple sales techniques, it was easier for them to make sales.
Now, however, there are some cases even the shop owners can't find where the original owner is.
Phuoc said, "If the vehicle was sold one or two months ago we can probably still find the original owner. However, it's almost impossible to do so if the vehicle was sold long time ago, and even if we find them they may not agree to help."
Currently, a number of cheap motorbikes in the shop have been sold several times posing even more difficulties in finding the original owners. Even though many shop owners want to close, they cannot figure out what to do with their inventories.
"I used to sell five to seven motorbikes a day, but I haven't sold a single one over the past several days. I still have my overhead of wages, rental fees." Phuoc said.
Cheap motorbikes that have been sold several times