Easy Steps to Buying a New Car Without Getting Defrauded

Toyota Gujranwala Motors was recently in the news for all the wrong reasons. Its proprietor allegedly siphoned off hundreds and millions of rupees from his customers and fled abroad. To make matters worse, some of the victims did not have a receipt to prove their case. They had given cash to the proprietor who had earned their trust over a period of time. These people now find themselves in a lurch.

So how can you buy a car from a dealership without the fear of getting conned by its owner? While the process will slightly differ from company to company, and for individuals, corporations, and government, the following steps will more or less apply on the booking of cars from all the major car manufacturers in Pakistan.

If You are Booking a Car with Partial Payment Where Delivery Time is More than 30 Days

  1. Fill in and sign the Provisional Booking Order (PBO) form and obtain Customer Copy from the dealer
  2. Attach a valid photocopy of your CNIC
  3. Get a Pay Order or Demand Draft made in the name of Car Company [Indus Motor Company Ltd/Honda Atlas Cars (Pakistan) Ltd/PSMC. The dealership will tell you the amount and attach it with PBO. The Pay Order/Demand Draft must not be older than 14 days from date of issue at the time of submission
  4. Sign Partial Payment Undertaking and keep its photocopy for your record
  5. Ask the dealer the date before which you need to pay the remaining amount

When Making Balance Payment

  1. Pay the difference between RSP (including freight) and the partial payment you’ve already made
  2. Pay the withholding tax
  3. Get the Balance Payment Form and keep its photocopy for your record

If You are Booking a Car with Full Payment Where Delivery Time is More than 30 Days

  1. Fill in and sign the Provisional Booking Order (PBO) form and obtain Customer Copy from the dealer
  2. Attach a valid photocopy of your CNIC
  3. Get a Pay Order or Demand Draft made in the name of Car Company (the dealership will tell you the amount) and attach it with PBO
  4. Pay the RSP (including freight)
  5. Pay the withholding tax
  6. Sign Full Payment Undertaking confirming that the dealer offered you the option of Partial Payment and have its photocopy made for your record

Take Away Point: The Bottom line is to never pay in cash or write a cheque, make pay order or demand draft in the name of an individual or dealership. All transactions must be documented so that you have documentary evidence in case of litigation.

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