Vietnamese automaker VinFast may sell the cheapest new car in America soon, according to a new report. Buyers would have to use a government tax credit to get the jaw-droppingly low price. But the tiny VF 3 2-door SUV could be offered for as low as $13,500 after Uncle Sam’s discount.
What Is VinFast?
VinFast is the first Vietnamese automaker to attempt to sell cars in America.
Related: What Is VinFast? All About The New Vietnamese Automaker
It’s a subsidiary of Vingroup, Vietnam’s largest conglomerate, which does business in fields as varied as real estate and healthcare. If you enjoy your vacation at a Vingroup resort in Vietnam enough to stay, you can move into a Vinhomes-built apartment, study at a Vingroup university to launch your new career, and shop at Vingroup-owned grocery stores for your breakfast before class.
VinFast, its fledgling automaker arm, has been planning aggressive growth. It now has offices on five continents, with plans to sell vehicles on each.
That sales plan includes the United States, where VinFast is opening a handful of showrooms in Southern California.
What is the VF 3?
Those showrooms might offer a tiny 2-door SUV with a starting price as low as $20,000.
The report comes from industry publication Automotive News, which explains that VinFast is in the process of building a dealership network in America. Those dealers, AN reports, are urging the company to offer its VF 3 for sale in the U.S.
AN describes the VF 3 as a “minicar that’s specifically designed for the Vietnamese market but could have potential as a sub-$20,000 city car for budget-minded Americans.” We’d describe it as a newborn puppy of the old Toyota FJ Cruiser, all awkward proportions but cute for that reason.
It could cost even less than $20,000 for most buyers. VinFast’s sales strategy is heavy on leasing. Leased electric cars qualify for the full $7,500 EV tax rebate even if they’re built overseas.
And the VF 3 could be built in the U.S. VinFast plans a factory in North Carolina. EVs assembled in North America, with battery minerals that originate in the U.S. or certain partner countries, qualify for the same rebate even when purchased, not leased.
Starting Jan. 1, buyers can transfer that credit directly to dealerships for use as a downpayment.
That could bring the effective price of the VF 3 as low as $13,500 for most buyers — instantly making it America’s most affordable car.
Reasons for Skepticism
We wouldn’t urge you to start saving for the tiny thing yet. There are at least two good reasons to wait and watch VinFast develop before deciding this is the car for you.
One is about the company. VinFast briefly appeared to be one of the world’s most valuable companies this summer before values crashed back to Earth. It isn’t yet clear whether VinFast will become a viable automaker with a convenient network of service centers across the U.S. or just a meme stock forgotten in a decade.
The other is about the cars. VinFast’s first U.S. product, the VF 8, received some of the worst early reviews we’ve ever seen for a car earlier this year. Most of the issues reviewers cited are fixable. But, for our money, we’d wait to see if the company can fix them before getting too interested in a VinFast product.
