The used car market has been sluggish so far this year, with declining demand and lackluster transactions. Despite steep price cuts compared to previous years, many showrooms see few customers, operating minimally and holding their breath for a recovery.

A VietNamNet survey at used car hubs in central Hanoi, such as Le Van Luong, Pham Van Dong, Nguyen Chanh, Thanh Thai, Nguyen Van Cu, and Nguyen Van Linh, found sparse customer visits and transactions. Sales at major Hanoi dealerships have dropped sharply compared to last year.

Le Dinh Dung, owner of a used car showroom on Le Van Luong street, said that while he could sell 15-20 cars monthly in previous years, it now averages under 10, with some months as low as five. In addition to slow sales, car prices have dropped so sharply that pricing for trade-ins and resales has become increasingly difficult.

“Previously, lightly used cars (1-2 years old) would lose about 10-15 percent in value, now depreciation has gone up to 20-25 percent, and luxury vehicles are seeing even steeper drops. For example, a mid-range 2023 Hyundai Accent, which could fetch VND500 million at the end of 2024, now sells for just over 400 million. 

We have to sell many products at a loss, because the longer you hold on, the more you lose,” Dung said.

Trieu Bon, who runs a used car business in Dai Mo Ward (Hanoi), noted that used car prices have been trending downward over the past year, mainly following the decline of brandnew car prices.

“Many owners are holding on to their cars, waiting for better prices instead of selling at a loss. This has led to a clear drop in transactions. Sellers don’t want to lose money, and buyers are waiting for lower prices, which makes the market stagnate,” Bon explained.

Used car dealers in Hanoi admitted that the early months of 2025 were the most difficult and “haunting” period to date. With plummeting sales and high costs (rent, labor, loan interest), many businesses are just struggling to survive.

Dealers anxious as Ghost month nears

With the Ghost Month (the seventh month of lunar year, called ‘the month of forsaken souls) approaching, both new and used car markets are bracing for the familiar slump in demand due to consumer superstition. For car dealers, this is the most dreaded time of the year, as already weak demand worsens.

In the brandnew car market segment, many brands have launched big promotions and registration fee support to boost demand. Some sedans, SUVs, and MPVs have hit record low prices, and inventory issues persist. But things are even worse in the used car segment. 

The under-VND500 million market segment, once a fertile land for first-time buyers, has also cooled, due to deep price cuts in new cars.

According to Nguyen Minh Khanh, a showroom owner on Nguyen Van Huyen Street (Cau Giay, Hanoi), buyer superstitions further dampen demand, potentially marking the market’s lowest point for both new and used cars. However, Khanh noted that used car price drops are typically less severe than those for new cars. 

“In the last years, sales started to bounce back again after the 15th day of the Ghost Month and the market would warm up toward the end of the year. I believe the used car market will regain some momentum after the Ghost Month, though a strong boom like previous years is unlikely,” Khanh said.

According to industry experts, the Ghost Month serves as a necessary “pause” for the market to correct itself. Transactions are expected to improve afterward, as consumer superstition fades. From now until the end of the year, recovery may come via government stimulus policies and heightened year-end shopping demand.

However, a return to the high growth of previous years, when demand was stable and macroeconomic conditions were favorable, is unlikely. Additionally, upcoming policies related to limiting gasoline vehicles may also affect consumer psychology, causing hesitation in buying used gas-powered cars.

For used car dealers, the most critical factor now is liquidity. Those who can withstand the “Ghost Month storm” may have a chance to catch the year-end wave. On the other hand, many showrooms may be forced out of the market due to persistently high costs in rent, labor, and loan interest.

Hoang Hiep