During the days leading up to Tet holiday, a used car showroom called “Trung Japan Auto” in Long Bien, Hanoi, attracted attention with dozens of European luxury cars on display. Perhaps the most eye-catching car in the showroom was a Bentley Mulsanne with a striking black and white color scheme.
Starting with selling Japanese phones, Mr. Ta Trung (affectionately known as Trung Japan) shifted to selling used luxury cars at affordable prices, ranging from 300-400 million VND. The criterion that Mr. Trung set when he first opened the showroom was to “make Mercedes-Benz more accessible to the masses”.
With the increasing affordability of used Mercedes-Benz cars, Mr. Trung started importing higher-value luxury cars, ranging from one to several billion VND. In recent years, his showroom has begun to feature used Rolls-Royce and Bentley cars.
We had a conversation with Mr. Trung to learn about his journey of selling these pre-owned luxury cars at a time when most businesses have faced extremely difficult periods.
Hello Mr. Trung, thank you for agreeing to this interview. In recent years, you have expanded your business to sell used luxury cars. At the same time, you also own a Rolls-Royce. What led to these changes?
They say that if you have a passion for cars running through your veins, then you will eventually aim for the highest peak, conquering the pinnacle of emotion. When they have the means, they will pursue supercars or luxury cars such as Ferrari, Lamborghini, Rolls-Royce, or Bentley.
In Vietnam, playing with supercars like Ferrari and Lamborghini can be relatively challenging in terms of operation and fully experiencing the essence of the cars. It is more common to keep these supercars at home for display rather than for everyday use. On the other hand, using a Rolls-Royce for daily purposes is a different story. It allows me to travel to many places and serve different purposes. Therefore, when it comes to owning and doing business with luxury cars, I aim for cars like Rolls-Royce and Bentley, rather than supercars.
A Rolls-Royce was one of my cravings, a dream that I had worked very, very, very hard to achieve. The feeling of owning a luxury car is different from borrowing someone else’s car and taking it for a spin. Borrowing a car can never provide the same complete and fulfilling experience as having your own. That’s why I bought and have been using a Rolls-Royce Ghost since 2021.
What are the challenges and advantages of selling used Rolls-Royce and Bentley cars?
I consider it a high-risk venture. In business, they say that the higher the risk, the higher the profit. Expensive cars like Rolls-Royce or Bentley have attractive price margins, which made me desire and convinced me to invest a large sum of money to import them.
If the timing is right, the profits from selling a Rolls-Royce can be very tempting. Instead of selling 10 Mercedes-Benz “C-Class” cars, I can sell just one Rolls-Royce. Although the profit margins may not be the same, the “turnaround time” is faster. In reality, it would be challenging to sell 10 “C-Class” cars in one month, but if lucky, I can sell a Rolls-Royce within a week.
There are also significant risks involved. For example, during the recent financial crisis, it affected all business sectors, including the automotive industry. When people need money to cover other expenses, their first thought is often to sell their cars for quick liquidity. Therefore, it was difficult to sell cars to individuals at that time, especially expensive luxury cars, as not many people were willing to make such a purchase.
The Rolls-Royce Ghost that I am currently using was purchased in 2021. At that time, the economy was improving, and cars were selling well. Because I liked the car so much, I kept it and did not sell it. However, last year, it was challenging to sell. I listed the car for 19 billion VND, but now it is only worth around 16 billion VND, meaning I incurred a loss compared to the purchase price. Many customers were interested, but they did not have the financial means to buy.
Why did you decide to import Rolls-Royce and Bentley cars during a downward economic year, knowing the difficulties involved?
The essence of our society’s cash flow is always circulating from one person to another. There are times when the government redistributes money, but during the difficult times for real estate businesses, it could be the right opportunity for other businesses, such as those in the food industry.
Therefore, people still received money during that time, and they used that money to buy things they had been dreaming of for a long time, at a lower price than when the overall economy was on the rise. That includes acquiring luxury cars. I approached the right customers, so I was still able to sell the cars.
According to you, what are the differences between customers buying new Rolls-Royce or Bentley cars versus those buying used ones?
In my opinion, customers buying new Rolls-Royce cars are generally more successful and have stable businesses. When they have stable cash flow, they will buy new cars without emphasizing the price but rather prioritizing their emotional fulfillment.
On the other hand, customers buying used cars are usually in the early stages of success. They need to project a good image and require financial optimization. Therefore, they tend to buy older models. Customers buying used cars are more rational and prioritize the price of the car.
When customers buying new Rolls-Royce cars are greeted in a VIP showroom with luxurious facilities like a 5-star hotel, how do you welcome customers buying used cars?
Customers buying used cars have the same emotional needs as customers buying new cars. They do not necessarily need to be greeted in an ultra-luxurious place. It is essential to take care of them and provide friendly advice, treating them like friends having a conversation.
Since the beginning, whether selling Mercedes or Rolls-Royce, my approach has always been the same. The more expensive the cars, the more I need to understand the emotions and preferences of customers. When interacting with people, I never start a conversation with “hey/sir/miss, I have this car, would you like to buy it?”. Most of my luxury car customers come from relationships I built while using other products.
For example, high-end watches have always fascinated me, and I have researched and liked this product. There were customers who initially purchased Rolls-Royce cars through stories about their passion for luxury watches. They hinted at trading multi-million dollar Patek Philippe watches for cars, and I was willing to negotiate. Even when they no longer needed the watch, they could sell it for cash.
Or why did I choose to buy a villa in Vinhomes? There are many potential customers in that area. I increased my network by participating in residents’ groups and groups related to luxurious products that I am interested in, such as speakers, audio equipment, and watches, actively interacting with them. Through these shared interests, they knew that I sold cars, and eventually, they would purchase cars from me.
Recently, I sold a car to the parents of a classmate of my child. During a parent-teacher meeting, I shared some funny stories, catching their attention. The guest asked, “Oh, you sell cars?”, I replied, “Yes”, then they continued, “I’m thinking of buying a car, can you advise me?” At that moment, I had to advise sincerely. Once they trust me, they often introduce other potential customers. Therefore, my customer base is closely connected.
This Rolls-Royce Ghost that I am currently driving also helps me convince customers to buy luxury cars. Customers are more willing to listen to me because they believe that when the showroom owner, like me, has experienced many luxury cars, what I say is more trustworthy.
They say that everything in the world has energy. A Rolls-Royce car is a product crystallized from the essence of artists. It carries the energy and conveys that energy to those who can perceive it. Similar to having a luxury watch, when you meet other watch enthusiasts, if you catch the right “vibe,” the deal could be closed faster.
Furthermore, the stories and knowledge that you possess also generate energy to attract customers.
In the context of a fluctuating vehicle market and a shortage of cash, any form of exchange can be worth considering. With cars priced at tens of billion VND, cash payments are not the only option. I am open to different forms of transactions. For example, some customers propose exchanging real estate, luxury watches, or even diamonds for Rolls-Royce cars.
I highly value transactions of this kind as it represents a lever to enhance sales efficiency with luxury car models. Also, these transactions provide opportunities for me to explore other aspects of business that I have not yet ventured into, such as real estate or diamonds.
After nearly three years of using a Rolls-Royce, how would you describe the experience of owning such a car? Some people say that used luxury cars are prone to breakdowns, expensive repairs, and having no spare parts available.
To be honest, it’s quite surprising that this car has never had any issues. I only change the oil and oil filters regularly. It could be because I don’t drive much, with only a few thousand kilometers in two and a half years, so no problems have arisen.
For the Ghost Series I, I have seen some cases where people have had to rebuild the engine or transmission. However, with the Ghost Series II which I am currently using, it is newer and has been very reliable.
Since BMW took over Rolls-Royce, many parts of Rolls-Royce cars are shared with BMW, so there are fewer issues. For example, the V12 engine in the Ghost is similar to the V12 engine in the 760i, so it is very robust.
The Bentley, on the other hand, experiences a quicker decline in interior quality. The leather deteriorates, becoming sticky and blurry, making it impossible to restore. This is partly due to the unsuitable hot and humid climate in Vietnam for this type of material. The suspension system of Bentley also encounters more issues compared to Rolls-Royce.
Repairing luxury cars at this time should not be a concern. Rolls-Royce and Bentley cars are now widely used and traded in the market. Many garages have spare parts available for me to borrow and test. For example, if the car experiences vibrations or jolts, it could be related to spark plugs, ignition coils, or fuel injectors. I could borrow these parts from another garage to check the issue and then order the exact replacement part. In the past, when spare parts were scarce, I would have to order all three parts to test and replace them, which was costly.
Thank you for sharing.
