Dealerships Make a Huge Increase in Own Money Amid Global Crisis
Delayed deliveries are becoming an increasingly bothersome mainstay of the Pakistani car market in more ways than one. On the one hand, the standard procedure entails car buyers having to wait for a long time (sometimes as long as a year) for their cars to be delivered. Those who want their cars to be delivered early have to resort to paying illegal premiums called ‘own money’ to dealerships.Advertisement
Despite the government’s efforts, the own money culture is exacerbating. A media outlet recently reported that car dealerships have increased the amount of own money on the purchase of new locally assembled vehicles to Rs. 400,000.
The President of the Car Dealers Federation, Shehzada Saleem, told the media outlet that the own money on vehicles with engine capacities between 650cc and 1000cc has been increased from Rs. 100,000 to Rs. 250,000.
Additionally, the own money on the Suzuki Cultus has gone up from Rs. 75,000 to Rs. 250,000. Saleem added that the Honda Civic is currently warranting own money of up to Rs. 300,000, while that on the Corolla Altis Grande has been increased to Rs. 400,000.
A few weeks ago, a car dealer told the media that the own money on crossover SUVs like the Kia Sportage, the Hyundai Tucson, the DFSK Glory 580, and the MG HS ranges up to Rs. 700,000.
Based on latest reports, the following are the amounts of premium being charged against some popular vehicles in the market
|Vehicles||MSRP (PKR)||Own-Money (PKR)|
The root of this in the local car industry is believed to be the lack of transparency and active law enforcement by the concerned authorities.
The government had stated on several occasions that it is working on eradicating the own money culture from the market but there seems to be a lack of substantial follow-up on its claims so far.