Used car prices might rise – Here’s why
New Year is proving to be a hellish one for Pakistani consumers, especially for automotive lovers as local automakers have increased the prices of their cars. Toyota was the first to do so while Pak Suzuki and Al-Haj FAW followed soon. And now different rumors are circulating on social sites that prices of local and imported used cars will also hike in coming days. So to give a clear picture to our readers, we will dissect the rumors. It is to be noted here that this article is purely based on my personal opinion and there might be another picture to the story.
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Firstly why I think there is some weight in the rumors. As we all know that Rupee is getting devalued against Dollar and due to it the prices of oil, new cars, and other household items have surged. So this is my first reason why the prices of local and imported used vehicles might increase.
The second point is related to imported used cars by and large. The Government of Pakistan has issued new SRO namely 1067(1)2017 and strengthened its used car import policies to stop their mistreatment. With the new SRO, the government has made it difficult to import vehicles, which will inevitably increase their prices as there is a lot of demand for them and also the constant devaluation of the rupee. As of now, USD 1 is around PKR 110, which is quite alarming for country’s economy.
The local automakers despite working at full capacity cannot cater the needs of local consumers, which is why used car market dominates Pakistan domestic automobile industry. So if less used imported cars enter Pakistan, their price will undoubtedly rise. Similarly, due to importing fewer vehicles, the demand for the local used car will surge, resulting in the hike in their prices.
According to the government, it has issued the SRO to curb trade deficit, not to harm used car import. Let’s wait and see how events unfold. Until then keep motoring and stay tuned to PakWheels.com for more automotive news.