Auto-Finance Suggestions

[soomrojb]

Dear All,

I’d like to upgrade from Mehran (1998) to Cultus VXL (2017) and have recently been meeting with couple of banks and seeking other possible investment means that I can think of, in order to avoid bank interest (riba). I’d like your suggestions in this regard, before picking an option; here are further details:

• Vehicle price: 1.72 ~ 1.8 millions
• Down payment: 1 million
• Bank loan (up to): 0.8 million

And here are possible options:

Bank Islami
* Tracker/insurance are separate
* Monthly rent: 40K
* Total rent in 24 months: 960K
* Total interest: 160K

Meezan Bank
* Monthly rent: 44K
* Total rent in 24 months: 1056K
* Total interest: 256K

Committee/BC
* 50K per month for 20 month
* Total amount: 1 million
* Self-purchase, no bank involved
* Not-confirmed yet, due to less participants

Before suggestions:

• I am okay with older models of Vitz/Swift or Cultus 2017+ against 10 lacs in advance, rest 50K per month
• kindly don't recommend other brands/models

I have never applied for a bank loan before and committee/BC isn’t finalized yet, I know that there are always hidden charges in bank transactions and unknown expenses come if I choose to go with any bank. I need your suggestion in:

• Which bank should I choose any why?
• Are there any other bank/non-bank options as well?
• Is it possible that someone can land money against proper legal documents, just to help me get the car, I can easily re-pay up to 50K per month (and little additional at end), making it 14 months tenure (or even lesser); this way, I won’t have to go with riba/interest based alternatives

I need to finalize this soon after Eid, hopping for positive feedback and suggestions.

Regards,

Soomro

[dr.salmanawan]

I financed my last car from Bank Islami. Its a very nice and friendly bank. All the staff was cooperative. Had some issue with delivery and called their Head office directly. They were more than ready to entertain and even isntructed Branch to entertain the customers better.
Also during warranty claim never faced any issue.
When I went to them for clearance certificate, it was issued without any hassle.
I couldnt transfer the car to my name in time and the certificate expired, replacement certicate has a fee (first one is free), the rep in the bank told me to take the expired certificate o excise
His words were
Sir aap ye un ko de den, unhon ne hmary paas bhejna hai verification ke liye, hum clear kr den gy, aise hi aap ko extra fees bharni pare gi.

So overall a very good experience.

[azfarnb]

There are no hidden charges in bank transactions. Everything is pretty clear and obvious.

Go for any of the above banks, the market rates are competitive

1. Avoid non-banking leasing
2. I don't think anyone on pakwheels would help. Friends and family should be your first point of contact. If you go asking for money from any Khan Installment, theyre going to charge upto 50% in markup so thats a big no

[Moderator]

in Pakistan Banks & DFIS are authorized to conduct leasing business under SECP & State Bank umbrella. All such activities under non registered private investment companies are illegal. Stick to legal banking channels only, every passing day scamming businesses are in mushroom growth robbing people of their money and property both.

[hassan3344]

Hi,

I would suggest you to get quote from Bank Alhabib(islamic). Their process was pretty quick and the car would be on your name rather than bank's. I have personal experience with Meezan, Dubai Islamic and BAHL. BAHL was the most convenient and quick to respond.

Meezan took almost 2-2.5 months to process the case whereas BAHL took a month only and car was at my place.