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Thread: Karachi below Punjab??

  1. #1
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    Default Karachi below Punjab??

    Karachi Car prices are a good 10-15 % lower than Punjab in the advertisments posted on Pakwheels and Jang newspaper.

    Are the prices really lower in Karachi, or do people in Punjab tend to leave more room for bargaining?

    In short, is it worth the effort to save a couple of hundred thousands and get a car from Karachi and transport it to Lahore?
    Those who like me - Raise your hands. Those who do not like me - Raise your standards!!!

  2. #21
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    Default

    Quote Originally Posted by panicslayer

    Demand supply is not at all a factor. Regarding car, whatever the demand is, supply can easily be adjusted according to that...... Being into autos market for the last 4-5 years, i have an experience that here in Peshawar, people don't like karachi registered vehicles for few reasons. - Rust, due to high percentage of humidity in Karachi - Police is always after karachi registered, don't know why - For this region, checking file and etc is not easy to go all over to karachi and do that Now the main point is, this is not only for Karachi registered vehicles...... Peshawar, Islamabad and Lahore.... Except these vehicle, registered vehicles of any other city has lower demand and hence lower prices, not specifically karachi

    You are missing the whole point. The Original Post talks about Why prices in Karachi is lower than prices of car sold in Punjab. He is not saying Why cars in Karachi are sold for less prices in Punjab. He is saying why karachi cars are sold at lower prices in Karachi and Punjab made cars are sold at higher prices in punjab.


    And you are contradicting youself, first you said It has nothing to do with Demand/Supply. Later on you said registered vehicles in other cities has lower demand and hence lower prices.


    Prices are ALWAYS determined by Demand / Supply situation and cost of production. If prices reduce thats only because either the demand has reduced or the supply has increased!


    For me Why Karachi prices are lower than Punjab here are the reason


    1. Supply & transportation costs are major issue. As someone pointed out, the delivery costs of vehicles transported to up country from Suzuki and Indus motors plants in Karachi makes the final product prices of new vehicles heigher in Punjab. Area of Punjab is bigger and supply/availability of dealers for total market who want to buy a car is lower than that in Karachi. Hence people in Punjab are willing to pay higher prices than those in Karachi where supply is no issue.


    2. Karachi has good availability of busses and taxis than Punjab on a per Mile basis. In Lahore it's very difficult to get a taxi while not many buses deploying passengers to different parts of the city. Only some vans. In karachi you get lots of Busses, taxis, Rickshaws etc. Hence need for cars is lower, hence lower prices.


    3. Threat of car theft is a lot higher in Karachi, which distract some people to buy a car of their own and they would rather prefer public transport.


    4. Social status symbol in Punjab of owning a car is higher than that in Karachi. Hence once again higher need.


    So if the need in Punjab is higher, why not supply is increased to bring down the prices there? the answer is it's not easy to distribute throughout Punjab, vehicles that are made/imported in Karachi. And transportation costs need to be recovered in the form of higher prices.

  3. #22
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    Quote Originally Posted by xyppam

    Yes, all of you seem to have a point. Conclusion - there IS a price difference b/w Karachi and Punjab. So the higher price Lahoris and Islamabadis are asking for their cars doesn't mean that they have left more room bargaining. BTW, just out of curiousity, how much is the bargain elasticity in Karachi market? I know in Lahore showrooms its around 4-7 percent, i.e. 40-70 thousand can be waved off on a car worth 1 million. But the question remains; Is it worth the time and effort to travel to Karachi in order to buy a car worth a little over a million?

    Bargain elasticity should be th esame, more or less. And I think it is worth the effort to buy a car in Karachi if the price differential is substantial.


    I just said a very obvious thing

  4. #23
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    Default

    I always thought it was due to the fact that Karachi is a huge market for cars and there are always lots of cars available for sale, so if you dont like the price of one car, move ahead and find a suitably priced car. Here there are not THAT MANY cars to play with to begin with!

    Just my two cents!
    God Bless Pakistan! ......................... I am never amused by underage punks driving around their papa's cars!

  5. #24
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    Khuldun just said what khurem has been saying since morning.

    My car search has been prolonged for almost a month now, and I think I should visit Karachi before my strengths exhaust.
    Those who like me - Raise your hands. Those who do not like me - Raise your standards!!!

  6. #25
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    ^^ Try to find a car online before you go and make sure you have all the facts sorted out so that you can go and make a hassle free deal. One of my cousins has been getting all his cars from Karachi. He lives in southern punjab and when he has to change a car, makes a visit to Lahore, sells the car and gets a friend along on a road trip to Karachi and gets a new car. Not only does he save about 50,000/- net, he also enjoys the whole car changing plan!
    God Bless Pakistan! ......................... I am never amused by underage punks driving around their papa's cars!

  7. #26
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    Default

    agreed with abid raza & khurem
    ITS BETTER TO KEEP SMALLER NEW CARS RATHER THAN OLDER BIG ONES...

  8. #27
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    Default

    And whats the price differnece between a karachi and lahore registered car in LAHORE?

  9. #28
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    if you really want to buy a car from Karachi you won't get good resale value in Punjab.. that is mainly because of the paper work and a local registered car has a safe feel to the law enforcers... the other thing is that its always easy for a local registered vehicle to pay your annual taxes.. Karachi is a huge market for cars and the number game decides the prices and the will of the people selling and buying a particular car determines its price. though you can bargain as the margin is good, on a good deal you may be able to peel some extra bucks of the price i.e. that is upto 9% of the asking price.

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