Brand new 2009 model cars ‘gathering dust’
[I]* Traders say buyers not interested in old models, waiting for latest models to be released
* Car dealer says despite slashing of ‘own money’, increased taxes dampened sales in 2009
* Jail Road Traders Association official urges govt, manufacturers to decrease prices
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LAHORE: Brand new 2009 model cars are available on the market at less than the invoice price due to the arrival of the latest models. Sales of 2009 models cars have also plummeted due to a gradual increase in their prices throughout the year, traders told Daily Times.
They said buyers were not interested in last year’s models despite the fact that they were available for less than the invoice price, adding that most people were opting to wait for the latest models, which would be available by the third week of January.
Rizwan Goraya, a car dealer on Jail Road, said he had not sold a single vehicle this month as the buyers were asking for new models. He said a couple of months ago, ‘own money’ – immediate ownership charges – was charged on new vehicles, however, they were slashed after a decline in sales and the vehicles were available for less than the invoice prices.
Business: “An 800CC vehicle was available for on money of Rs 10,000 in August, but now it is being sold at less than the invoice price of Rs 454,000 – for a vehicle fitted with a CNG kit,” Goraya said, adding buyers were not purchasing vehicles citing high vehicle prices despite cutting the on money. “A lot of my regular customers said they are waiting for new models and are not ready to purchase an older model,” he said, adding business activities remained disturbed due to an increase in government taxes on new vehicles.
“It has wreaked havoc on our businesses and our sales have dropped sharply,” Goraya said. He said wrong policies of the Excise and Taxation (E&T) department had troubled car dealers and the masses earlier. “Though the policies were changed later, they did put pressure on the overall business.”
Revenues: Another car dealer, Anwer Bhatti, said the prices of vehicles kept increasing throughout the year and caused a decline in sales of brand new cars. He said not only did this trouble the dealers but revenues of the provincial government also decreased. “The government generates revenue after registration of new vehicles but the revenues have dropped due to a decrease in the registration,” he added.
Jail Road Traders Association General Secretary Zafar Iqbal said around 30,000 vehicles were registered with the E&T department in 2009. “Normally 100,000 vehicles are registered each year but there were less sales this year due to several reasons, including poor law and order situation and high retail prices,” he said, adding the recent wave of terrorism had also affected their business.
Prices: Iqbal urged car-manufacturing companies and the government to consider decreasing the prices. He said the middle class could not afford to buy a brand new car, which affected their sales. He said the government should provide security to markets and businessmen. Iqbal said an increase in petrol and CNG prices will also affect the sales of vehicles.
