Sun. Dec 4th, 2022

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

By vivian