Car Dealers in Pakistan Taking Instantaneous Car Deliveries a Hostage Against High Premium
Car Dealers in Pakistan Taking Instantaneous Car Deliveries a Hostage Against High Premium
Due to the long delay suggested inbetween booking and receiving a vehicle, car purchasers in Pakistan have to pay high premium money to car dealers in order to receive their cars instantly without waiting for three or four months.
The cars available at showrooms are not locally produced and in order to buy one, customers have to wait 3-6 months for their vehicle to arrive, or they have to pay extra money to receive the vehicle without waiting.
High Premium for Toyota Corolla
Different cars have different time periods within which they are delivered. If you book a Toyota Corolla Gli or Xli now, the vehicle will be delivered to you in July and if you book a Toyota Grande or Altis, you will have to wait till May. The 2nd option includes paying high premium. Premium on Corolla Xli is Rs135,000 while premium for Corolla Gli starts from Rs170,000 and completes on Rs180,000.
The request for fresh vehicles increases swiftly in the very first six months of the year as customers tend to buy vehicles in that period due to the switch of model with the commence of the year.
Due to lower interest rates, people have shifted towards car financing and this has taken the auto financing sales up to 30% as compared to one and a half year ago when these sales were only 10-15%.
Production And Request, Poles Apart
Car dealers exposed that more than 200 vehicles are being produced every day by the IMC, and Toyota Corolla acquires the largest share in it. Even however the production has enlargened, it has still not met the request of the vehicles.
Premium for Honda
If a Honda Civic is booked now, it will be delivered to the customer in August. As a result, customers are paying Rs150,000-200,000 as premium. It was exposed that the premium for models that are more in request has enlargened up to Rs250,000.
Honda City buyers will receive their vehicles in May-August. Premium for City ranges from Rs100,000-130,000.
It was said that Honda Atlas Cars have embarked to produce 170 cars per day. Four months before, production rate was 110 cars per day. The enhanced production has still not been able to cope up with the enlargened request for the Honda cars.
Besides the fresh models, the old models of Pak Suzuki are also available on premium cash as the delivery of these vehicles also takes time. Delivery time for Bolan, Ravi and Suzuki is three to four months and the premium charged for these vehicles ranges from Rs40,000-45,000.
Rs120,000 is being charged for instant delivery of Suzuki WagonR. Delivery time for WagonR is 5-6 months. The delivery time for Suzuki Ciaz is three months and the premium charged for this vehicle is Rs90,000. The only vehicle being delivered in one month’s time is the Suzuki Swift.
Talking to Dawn, H.M. Shahzad, the Chairman All Pakistan Motor Dealers Association (APMDA) said:
“Our used car dealers are not involved in on money business”
It is hard to tell if such lengthy time gap for the delivery of these vehicles actually exists or the request has actually surpassed the production rate. Until now, no act has been taken by the government against car dealers involved in on-money business.
