HCMC – Auto dealers have proved to be the biggest beneficiaries of the Government’s move to introduce a 50% cut in car registration fees, and not car buyers, as expected, since many dealers have taken advantage of the cut to end their promotional programs and increase the prices of cars, according to operators of auto showrooms.
Many car buyers expected to enjoy huge price cuts after the move to lower the auto registration fee by half took effect from June 28 this year. It will go on until the end of 2020, reported Dan Tri news site.
The owner of Manh Thang showroom based in Hanoi, Pham Manh Thang, said that auto dealers reduced their promotional programs after the registration fee reduction took effect. The programs were introduced in the previous months to deal with the slump in sales and attract more customers.
Accordingly, auto manufacturers and dealers have proved to be the biggest winners of the 50% cut as they no longer have to offer discounts to customers. From the perspective of customers, there has been no change in the cost of buying cars, Thang added.
Further, as the registration fee reduction encouraged consumers to purchase cars during the period, auto dealers grasped this opportunity to raise car prices, resulting in an increase in registration fees.
Thang advised people who wish to buy cars from now until the end of the year to exercise caution and not follow the crowd. The fee cut is only valid on locally assembled or manufactured cars.
Nguyen Van Dung, owner of an auto dealership in Hanoi, confirmed that car prices have increased by VND10 million-VND100 million since the end of May when the Government planned the registration fee cut.