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Many banks are selling and liquidating cheap cars

TPBank, VIB and many other banks are offering to sell and liquidate many cars as collateral for debts at prices 8-20% cheaper than market prices.

Since the end of June, a series of banks have continuously issued announcements about the liquidation of collateral as cars to recover and handle associated debts.

Recently, TPBank announced the auction of five cars of Toyota, Chevrolet, and Kia brands to recover debts at this bank.

Models for sale in this batch include Toyota Vios E with a starting price of 381 million VND; Ford cars with a starting price of 502 million; Kia Thaco Frontier costs 269 million; Chevrolet Aveo price 207.7 million; and Chevrolet Colorado with a starting price of 393 million VND.

These are 5 cars of 5 individual customers who have a debt at the bank with the current balance of principal and interest at about VND 2.23 billion. However, the aforementioned customers all have lost their ability to repay their debt obligations, so the bank has seized collateral and liquidated the debt collection.

VIB Bank is also selling 64 means of transport, mainly cars with under 9 seats of many famous brands to handle debt.

In particular, there are many popular models such as Toyota Vios; Toyota Innova; Honda City, Chevrolet Colorado… even including some expensive cars like Mitsubishi Pajero or Peugeot.

The models being sold by this bank range from 230 million VND for the 2018 Chevrolet Aveo models to more than 1 billion VND with some Peugeot cars.

Many banks are selling and liquidating cheap cars

The car models sold by banks are often cheaper than used car markets in the market. Photo: TL

TPBank and VIB are currently the two banks that liquidate the most secured assets as cars. These are also the two banks that account for the majority of the market share in car loans.

Many other banks also continued to sell car liquidation to handle debts recently, such as BIDV, which is selling Toyota Corolla Altis 2.0, registered for the first time in 2011 for 420 million VND and Toyota InnovaG registered for the first time in 2013. price 220 million.

BIDV Long Bien branch is selling 8 passenger cars of Thaco Mobilhome brand with the starting price from 563 million to 1.3 billion VND / unit.

Vietcombank liquidated 10 Kia cars from 2008-2011 in intact condition, but showed signs of deterioration, the starting price for these assets is only from 60-70 million VND / unit.

VPBank is also auctioning 17 means of transport, mainly cars, with prices ranging from VND 276 million to VND 1.5 billion …

Notably, most of the models being sold by banks are cheaper than cars of the same condition on the market.

As the 2018 Chevrolet Colorado pickup is being offered for sale by VIB for 450 million, the same car on the market with the lowest price is 510 million VND, about 13% more expensive than the liquidation price of the bank.

Or the Honda City 2018 model is for sale for 500 million, the price on used car markets is currently about 530-580 million, depending on the situation. The 2018 Mitsubishi Pajero car sold for 850 million is also much cheaper than the price of 900-950 million in the market …

According to the survey, the car models being liquidated by banks are usually 8-20% cheaper.

The director of the debt handling division at a large bank said that cars are a group of assets with very good liquidity and are often easily handled by the bank when seized.

However, the psychology of the buyer of car collateral from the bank is often concerned about the accompanying papers (because of the related bad debt – PV), if offering a price equivalent to the market, it will be difficult to compete. Therefore, most banks leave liquidation prices low.

However, he also affirmed that lower prices do not mean that banks sell assets at low prices but still have to meet the rate of return when liquidating assets.

“Unless the case is sold too many times, it will force banks to lower the asset price. In many cases of liquidation for the 5-7th time, the price is 20-30% lower, but there are still no customers to buy, especially with real estate assets, factories, machines, ”he shared.

According to Zing


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