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 consumerspay 10 percent less than before to register a second-hand car. Thosewho buy a new car can save 5 percent.
The new carmarket will not be influenced much by the decree, as the 15 percent feeis only good news for consumers in the Hanoi market, where it waspreviously 20 percent.
In Ho Chi Minh City, therate was already 15 percent and in others it was 10 percent. Moreover,the Hanoi market only accounts for 12-15 percent of car purchases.
Theused car market is heating up thanks to the decree, which reduced theregistration fee for used cars from 12 percent to 2 percent.
Visitors to used car showrooms have increased significantly, accordingto Tran Hai Duong, salesman in a Hanoi branch of Vietnam AnycarCompany, which trades used cars.
Dương says hiscustomers 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 positivelyaffect the used car market, insiders predict. Before, due to the highregistration fee for used cars, both sellers and buyers often agreed notto change their ownership on paper – making it difficult forauthorities charged with regulating vehicle ownership.
But now that the fee to register a used Kia Forte 2011 is 10 millionVND (500 USD) instead of 60 million VND (3,000 USD), many buyers arepaying for ownership papers.
Nguyen Thi Cuc, President of theVietnam Tax Consulting Association, said that decree was not onlywarming up the local car but also helped authorities manage thevehicles.
Even more importantly, if more people registered their cars, the national tax could bring in more capital, she said.-VNA
Under Decree 45/2011/ NDCP which took effect on April 2, car consumerspay 10 percent less than before to register a second-hand car. Thosewho buy a new car can save 5 percent.
The new carmarket will not be influenced much by the decree, as the 15 percent feeis only good news for consumers in the Hanoi market, where it waspreviously 20 percent.
In Ho Chi Minh City, therate was already 15 percent and in others it was 10 percent. Moreover,the Hanoi market only accounts for 12-15 percent of car purchases.
Theused car market is heating up thanks to the decree, which reduced theregistration fee for used cars from 12 percent to 2 percent.
Visitors to used car showrooms have increased significantly, accordingto Tran Hai Duong, salesman in a Hanoi branch of Vietnam AnycarCompany, which trades used cars.
Dương says hiscustomers 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 positivelyaffect the used car market, insiders predict. Before, due to the highregistration fee for used cars, both sellers and buyers often agreed notto change their ownership on paper – making it difficult forauthorities charged with regulating vehicle ownership.
But now that the fee to register a used Kia Forte 2011 is 10 millionVND (500 USD) instead of 60 million VND (3,000 USD), many buyers arepaying for ownership papers.
Nguyen Thi Cuc, President of theVietnam Tax Consulting Association, said that decree was not onlywarming up the local car but also helped authorities manage thevehicles.
Even more importantly, if more people registered their cars, the national tax could bring in more capital, she said.-VNA
