Car Financing through Private Financing Companies

engr.umaraftab8 (Umar Aftab) 2021-07-07 11:28:04 +0500 #1

Hi all, I am planning to get a car financed from Horiizon Automobiles Islamabad. If anyone here has any experience financing a car through private finance companies, specifically Horiizon Automobiles, please share your valuable feedback and suggestions. Looking forward!

azfarnb 2021-07-07 11:52:40 +0500 #2

My first and only suggestion would be to avoid going to private companies for financing. They’re not regulated and can charge whatever the hell % they want to charge. And then you dont even know what their business practices are. Agar majboori hai and you cant go to a bank, tau bus phir take the step and let us know what your experience was like

Proverbial_Slang (Proverbial_Slang) 2021-07-07 12:06:23 +0500 #3

I would suggest to avoid them. A Pakwheels member posted an issue with one such company. Better to go with registered financial institutions.

engr.umaraftab8 (Umar Aftab) 2021-07-07 12:14:17 +0500 #4

They are registered with SECP, FBR and Chamber of Commerce.

sardarg (Singh is King) 2021-07-07 12:34:40 +0500 #5

sir to deal in financial matters STATE BANK NOC is key requirement.

above are requirement to register as Private Limited Business Entity it does not allow handling financial matters. Ask for State Bank registration number & PSX Code (stock exchange listing number) to operate as leasing company.

engr.umaraftab8 (Umar Aftab) 2021-07-07 13:02:04 +0500 #6

Alright, so we can say these companies are a total fraud?

engr.umaraftab8 (Umar Aftab) 2021-07-07 13:07:51 +0500 #7

What do you say about this?
Non Banking Finance Company (NBFC) Incorporation in Pakistan
Non banking finance companies (NBFCs), also known as non-bank financial institutions (NBFIs) are entities that provide similar like banking and financial services but do not hold a banking license.

nfssaad (Saad Ahmed Khan) 2021-07-07 13:52:25 +0500 #8

why not going for bank?

capsat (ومن شر حاسد إذا حسد) 2021-07-07 19:08:36 +0500 #9

you may read this link to understand how an NBFC operate, commonly known as Assets Management Company

engr.umaraftab8 (Umar Aftab) 2021-07-08 01:01:07 +0500 #10

So what does this mean? These private financing companies are NBFCs and can be trusted?

engr.umaraftab8 (Umar Aftab) 2021-07-08 01:05:02 +0500 #11

Banks usually charger a higher mark-up and include insurance in their plans which makes monthly instalment considerably higher.

nfssaad (Saad Ahmed Khan) 2021-07-08 09:56:43 +0500 #12

you really want to get a zero meter car with no insurance?

bank wont run away after taking your money remember that....

capsat (ومن شر حاسد إذا حسد) 2021-07-08 20:09:24 +0500 #13

NBFC's ( assets management companies ) have several limitations.

Banks are much better choice, no matter if & when liquidated or merger happens services will not discontinue or documentation will never go stale.

sardarg (Singh is King) 2021-07-15 14:49:40 +0500 #14

companies dealing for sale of items / vehicles under installment schemes without Leasing licenses are 'scammers' run & managed by black money investors.. You miss 2 installments and criminals will show up take away the material and you are empty handed. You can not goto court against such con artists. The fine print document you sign without consulting a lawyer is basically your leash under their control.