Household financial pressures impact car ownership decisions

Individual financial struggles and hesitations regarding car ownership are highlighted through two different household scenarios in China and Vietnam.

In China, a technical worker and his wife, earning a combined monthly income of approximately 10,000 NDT (33 million VND), decided to sell their used car after three years. The couple had purchased the vehicle for 200,000 NDT using 60,000 NDT in savings and a 140,000 NDT loan. The monthly loan repayments and maintenance costs consumed over 60% of their total income, creating significant financial pressure on the family, which includes a primary school student and elderly parents in rural areas.

In Vietnam, a couple in Hanoi with a combined monthly income of 105 million VND is debating whether to purchase a car valued at over 1 billion VND. Despite having 800 million VND in parental support and no need for loans, the couple is hesitant due to high recurring costs. Specifically, they are concerned about parking fees in the Hanoi Ring Road 2 area, which amount to 4 million VND per month, alongside other maintenance expenses for a growing family with two children.