Oversupply creates opportunity for consumers looking to buy a new car

Oversupply creates opportunity for consumers looking to buy a new car

The domestic automobile market in early 2025 is experiencing a significant shift, characterised by aggressive price reductions on 2024 models.

Honda Vietnam has implemented a promotional strategy to reduce the prices of several models from march 1 to 31, 2025. Photo courtesy of the company

The home automobile market in early 2025 is experiencing a significant shift, characterised by aggressive price reductions on 2024 models. This trend creates a unique opportunity for consumers looking to purchase a new vehicle at a more affordable rate.

According to local car experts, the oversupply often leads to reduced prices as manufacturers and dealers try to sell excess inventory. This can result in attractive discounts for consumers.  To clear out older inventory, manufacturers may offer significant incentives, including cash rebates, low financing rates or extended warranties.

According to the General Statistics Office (GSO), in 2024, the total number of vehicles available for sale was 620,740, including domestically produced and imported vehicles as well as those in stock from 2023. However, the actual sales figure was only about 510,000 vehicles, resulting in an oversupply of more than 110,000 vehicles. 

Several car manufacturers in Việt Nam aim to stimulate demand through various discount programmes, with these price cuts a strategic move to clear out inventories and attract buyers in a competitive market.

Honda has implemented a promotional strategy to reduce the prices of several models including Honda City 50 per cent off registration fees, the Honda HR-V with 50 per cent off registration fees, Honda CR-V with 100 per cent off registration fees and Honda Accord with VNĐ50 million off. 

Similarly, Hyundai Thanh Cong Vietnam reduced prices of their cars manufactured in 2024 by up to VNĐ75 million (close to US$3,000) for various models. Ford Việt Nam has also made significant reductions in their vehicle prices, including a price reduction of VNĐ10 - 47 million for the  Ranger and a 50 per cent reduction in registration fees (worth VNĐ66 million, or US$2,591) for the Ford Everest Ambiente.

Meanwhile, Mitsubishi Việt Nam also launched several promotions, including a 50 per cent reduction in registration fees for the Mitsubishi Attrage along with a VNĐ72 million (US$2,800)reduction for the Mitsubishi Outlander as well. 

An Hoàng Đạt, an employee of a large car dealership in Hà Đông District, Hà Nội, revealed that the dealership is offering a few different incentives based on the year of the car's manufacture. For cars manufactured in 2025, bonus gifts like car window film and floor mats are available, but the major perks seem to be reserved for the 2024 models. If you opt for a 2024 model, you can get immediate delivery and enjoy significant incentives, like support for 50-100 per cent of registration fees or a cash equivalent, depending on the car model and version. 

According to car experts, buying inventory cars - new cars that have been manufactured in previous years but have not been sold - can offer both substantial benefits and some notable risks. 

Dealers often provide substantial discounts, sometimes saving you tens or even hundreds of millions of đồng compared to buying a brand-new 2025 model.

The dealership often covers registration fees, and buyers may also receive insurance and accessories as part of the deal. These bonuses increase the overall value you get from purchasing an inventory car. Even though the car was manufactured in 2024, it is 100% newandunused. The full manufacturer's warranty still applies, offering peace of mind that any issues or defects will be covered, similar to a new 2024 car. 

However, experts also warned that buying inventory cars, especially those from a previous year like 2024, tends to lose value faster than newer models. Experts estimate that buyers may lose between VNĐ15 and 30 million when resold. 

They also noted that when purchasing a vehicle that has been in stock for a while, it's crucial to consider the potential issues that might arise due to lack of regular use, such as with the battery, tyres and the brake system. 

Bizhub