Car traders in Ho Chi Minh City will be pleased to know that a used car fair has just opened.

The car market, financed by Ho Chi Minh City-based Sago Auto Co. Ltd., is being held at the intersection of Nguyen Dinh Chieu and Mac Dinh Chi in District 1, starting from Wednesday.

Featuring services related to buying procedures like financing and registration, the venue is the first to let car owners meet buyers face-to-face.

Pham Van Thiet, chairman of the board of Sago Auto, said that the company aimed to make the car market outperform conventional trading methods.

Sellers can hire a stand at a cost of VND100,000 (US$4.5) a day to showcase their items and meet potential buyers, according to Sago Auto.

“All information related to the car is required to be clearly and fully provided, and the owner’s contact phone number is also shown both on the item and on the website,” he said when explaining how a transaction proceeds without go-betweens as per convention.

Thiet said that payment is done via a bank transfer in which buyers will send money to an escrow account. After the car ownership and documents related to the vehicle have been transferred to the buyer, the money will then be wired to the seller’s bank account.     

“This will ensure both sellers and buyers security throughout the transaction,” the Sago Auto chairman said, adding that “customers will choose the trading approach that will best protect their benefits.”

Inspired by a house for sale

Thiet said that he had come up with the idea of opening the market for trading cars after seeing a house for sale in the U.S.

“I find it impressive and safe when seeing all information about a house listed on the board, from the prices to the things that have broken down.

“They build the trust of buyers via honesty and clarity, which saves time for both sellers and buyers,” he said.

At that time, Thiet did not see selling cars at one’s own home, a conventional sales method in Vietnam, as an option because “car owners are not always available at home to show buyers their vehicle.”

“There is also a greater risk when completing transactions at home,” he admitted, adding that the buyers also leave it to luck if they fail to undertake good research on the vehicle they intend to purchase, not to mention the current status of the car itself.

Another factor putting buyers at risk is paying a deposit, “as it is hard to know whether the partner is the real owner of the vehicle,” Thiet said, hoping that the market would create a safe, convenient environment for both buyers and car owners to trade with ease.