Mortgage and asset liquidation services increased sharply

Although the epidemic has temporarily passed, its consequences are still making life difficult for many people. Including Mr. Tran Van Nen’s family in Binh Tan District, Ho Chi Minh City. He and his wife, who are workers, drivers of technology cars, their income dropped sharply, even now they have to be unemployed, causing the family’s meager savings to dry up. Mr. So had to bring his motorbike to a pawn shop to borrow money.

Customers are choosing to buy liquidation products at shopthanhly.vn of VietMoney Company – Photo: H.Lai

The owner of the pawn shop Ngoc Phuoc (St. 4, Binh Tan District, Ho Chi Minh City) said that since the COVID-19 epidemic, the number of customers bringing mortgaged property increased by about 20-30% compared to before. Even now, the number of visitors is still increasing, not decreasing. Usually, customers will hold assets such as phones, computers, motorbikes, jewelry… from 15 -30 days. Depending on the new and old, the mortgage price is equal to 30-70% of the property value, the interest rate is about 2% if borrowed for ten days and about 5%/month if borrowed for a month.

“Some people pledge their identity papers to borrow 200,000 – 300,000 VND”, a pawn shop owner on No Trang Long Street, Binh Thanh District shared.

An employee of the F88 pawn shop on Cach Mang Thang Tam Street, District 3, said: Demand for mortgage loans increased by about 60-70% compared to the time before the epidemic. “There are 70-80% of the pledged assets are motorbikes and cars because the value of the mortgage and the loan received is quite high, the rest are computers and phones. The borrowers are mainly technology car drivers, workers, small traders, freelancers, office workers …”, an employee at the store said.

Mr. Trinh Van Phuong – founder and CEO of VietMoney – said that in the context of escalating prices, the demand for used brands has also increased. Many pawn chains have now developed a mortgage liquidation model. In the opposite direction, the demand to sell mortgaged assets also increased. Many people who want to save money should choose to buy liquid goods. “After the epidemic, the amount of mortgaged properties that customers wanted to sell out was packed into the warehouse. The company tried to open a liquidation store, but within a few days, all of this inventory was sold out “- Mr. Trinh Van Phuong said.

The chain of pawn shops F88 also has its own store that specializes in selling mortgaged property of customers who do not want to redeem the property. Property here is also sealed intact during the mortgage process, returned in three days. “Most of the liquidated assets at the store are motorbikes, with prices ranging from 15 to 92 million VND/unit. Demand for used cars is quite high, popular cars have prices ranging from 15 to 36 million VND / unit”, said an employee of the mortgage warehouse at F88.

According to Dr. Dinh Trong Thinh – economist – the second hand market has thrived after the COVID-19 pandemic not only in Vietnam but also in many countries around the world. According to a survey conducted by the Belgian Trade Federation (Comeos), in 2021, sales of used computer products in the country are 332 million euros; fashion goods: 324 million euros; television and audio products: 196 million Euro; furniture: 140 million euros and smartphones at 134 million euros. On the e-commerce site eBay (USA), the sale of used items skyrocketed, in 2020 the company sold more than 60 million second-hand items. In China, in 2021, about 202 million people bought second-hand goods on online platforms, up from 183 million in 2020.

“Most modern pawn chains today have foreign capital. Catching up with the trend of liquidation market, they quickly launched pages specializing in mortgage liquidation. Compared to current online sale sites, buyers do not know who the seller is, it is not clear whether the product is good or not, these liquidation stores will create trust for consumers and will develop in the future. future” – said Dr. Dinh Trong Thinh.

Mr. Trinh Van Phuong added, there are many reasons why liquidation items attract customers. Firstly, because the global supply chain is broken, many new models (models) are reduced in quantity. Second, after the pandemic, when incomes decrease, consumers tend to spend more rationally, preferring to buy second-hand, good-quality products to save costs.

(According to Women in HCMC)

Interest rates on pawn… in heaven!

Covid-19 seriously affects the income of workers. To endure, many people have to pledge their assets to “survive” through the day. Many pawn shops are “screaming” interest rates in the sky!