Delay in Car Delivery? – This is Your Right as a Customer
In the last couple of years, several car manufacturers have entered in the local market of Pakistan. The companies like KIA Lucky Motors, DFSK , Changan Master Motor, MG Pakistan and Proton Pakistan have started their business in the country. Although these companies have launched several cars, but almost every company is delaying the delivery for one reason or another. The delay in car delivery has become a norm in Pakistani auto market.
Delay in Car Delivery:
Every other car manufacturer hand over the vehicle to the customer after a long wait, which can go up to months. For example, the current Delivery time for Hyundai Tucson is around 8 months, while Changan Alsvin will be delivered after a wait of 6 months. Moreover, Honda City, which has not even been officially launched, started pre-booking and its current delivery time is over 8-9 months.
The end consumer gets most affected by this delivery system because companies increase the car prices regularly. By the time of the delivery, the car price has increased many folds. Hence, the individual gets a new car after a very long wait and at a much higher price than the original one. And what does it encourage? The menace of ‘ON Money’, as the dealers and investors take advantage of this scenario. They offer customers immediate delivery with extra money; for example, the current ‘ON Money’ on different vehicles ranges from Rs1-lacs to Rs7-lacs. And most of the customers opt this offer to avoid wait and price increase hassles.
Meanwhile, as per the latest media reports, the government has decided to impose heavy penalties on car companies over late deliveries. The reports suggested that the government will finalize the decision soon and introduce it in this year’s annual budget. It means, if approved, the penalty will be applicable from July 1, 2021. However, we want to tell you that this is not a new law; rather, it already exists. Maybe the government will introduce some new terms and conditions in it. So, you don’t have to wait for the details, here is what you can do if your car delivery is delayed.
So, What Can You Do as a Consumer?
As a consumer, you have power but under specific circumstances. There is a policy of KIBOR under which the car manufacturer is bound to pay you after a said time period. But this policy is applicable only when you have booked the car with full payment. So, if you have paid fully for a new car, the company is bound to deliver it within two months. If the company fails to do so, then it will reimburse a percentage of your payment.
Currently, the KIBOR rate is 7.45% on the total amount of your car, meaning the company would reimburse 7.45% of the amount of your car. For example, the current price of the Changan Alsvin Base Variant is Rs22,00,000, and following is the method to calculate the KIBOR rate for your vehicle.
2,200,000 x7.45% (KIBOR rate) ÷365 (Days of year) x 60 (Days in 2 months) = PKR26,492/month
By this formula, you can calculate the amount on your car. And the company is bound to pay you this amount at the end of the second month of booking. But let us mention again, this only applies if you have booked the car with full payment.
We hope that this will be helpful for you and you can make the companies pay for late car deliveries.