Own Money Car Pakistan : Premium and informal in buying selling

Own Money: How has premium become an informal parallel sector in car buying and selling in Pakistan?

Car companies in Pakistan acquit themselves in own money while according to auto sector experts this own money involves a systematic car dealership and investors which makes people pay real price of the car. Are forced to pay more than

Mohammad Asghar booked a car for 1st time last year with his earnings. Asghar a 38 year old small business owner was eager to get his car but the car company did not deliver it to him even after seven months.

Own Money

Mohammad Asghar booked a locally manufactured car through a bank in November 2021 & was asked by the company to give him a car in June 2022.

Contacting the dealer through whom Asghar had booked the car in mid June revealed that his car could not be delivered yet as some of the cars to be delivered in March are yet to be delivered.


He no longer expects his car to arrive in July. He says that along with the down payment of the car he has also collected additional amount of withholding tax from the government on big cars but he does not think that he will be able to get his car soon.

Own Money car

Same situation was faced by Malik Ishaq who has booked 1800 cc car. He was told by the dealer that if he pays more than 2 lakh wool money he can get the car immediately. However Ishaq is not interested in buying a car by paying wool money so he is also waiting for the delivery of the car. Are

The price of petrol in the Pakistan has gone up by about 60 per cent in recent times & many people including Shehzad Mahmood are interested in selling their big cars & buying smaller and better average cars. Shehzad sold his big car & got a low powered car in just one week & he had to pay 1.5 lakh wool for a car he could get in a week.

He needed a car for work so he paid for the wool & got the car in a week. On the other hand many buyers like Asghar and Ishaq did not get their car after many months due to non payment of own money. Can do

Own Money car compny

The noise of wool money is heard a lot in the buying & selling of cars in Pakistan. Experts in the auto sector consider Own money to be an informal parallel sector in sector which involves billions of rupees annually those who get a car immediately have to pay extra for the actual cost of car in case of own money. Are

Toyota IMC a major car manufacturer in Pakistan has recently apologized to its customers for delays in  delivery of cars. The policy & the devaluation of  rupee have-been declared.

In this advertisement the company has also informed  buyers about the delayed delivery.

Own Money details

What is Own Money in  auto sector and  how has it become a parallel sector?

Own money has become a parallel sector in car buying own selling in Pakistan which is informal. Own money is the extra money or 'premium' that a buyer has to pay above the actual price to get the car as soon as possible.

If a person wants to buy a car the showroom gives him a few months or in some cases a year but if the buyer wants a quick car he will have to pay more than the actual price of the car which is called own money. In that case instead of the company you buy the car from someone who has already booked & got the delivery.

Mr HM Shehzad an expert in the auto sector told British News : that it was a whole black market in which the buyer was robbed & had to pay more than  original price of  car.

Me Shehzad said that this includes everything from cars companies to their authorized dealers sub dealers of these authorized dealers & investors. According to him own money business involves billions of rupees including big investors dealers & companies.

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He says that investors are preferred through authorized dealers & just as there are anonymous deals in the property sector there are anonymous deals in  car sector and work with big investor dealers. Are doing

Abdul Waheed director general of the Pakistan Automotive Manufacturers Association a representative body of automobile manufacturers confirmed that a full fledged parallel economy has-been set up in the sector in the case of wool money but said it would not allow cars to be made. It's not the fault of  companies.


Shehzad said that investors were active in the car sector as well as in property sector & were involved in  own money business.

Significantly however companies have never taken any concrete steps to curb own money.

Is own money related to the supply and demand of cars?

Talking about the relationship between car production in Pakistan & its demand for own money car dealer Sheikh Shiraz said that it is also related to the reduction in supply & demand.

He said that a person who has-been a car buyer needs a car as soon as possible & this is where own money starts.

He said that investors have booked cars & they take advantage of this haste on the part of the buyers & ask  buyers who come to them to buy cars on own money.

Talking about the involvement of car dealers in own money he said that a few months ago some car dealers used to get open quota of some cars for their corporate buyers which were sold through own money but now for a few weeks now Work has also stalled as this quota has-been abolished.

He said that now own money is taken when a person needs a car in a hurry and he contacts the dealer &  investors who are in touch with the dealers and who have a car to be delivered take extra money. They sell these cars.

In this regard Mr HM Shehzad said that companies should increase their production as far as supply & demand are concerned.

He said that 3 &  a half lakh cars are manufactured in Pakistan annually & companies should increase it according to their demand but these companies do not increase their production nor do they have inventory when they are taking money at time of booking. If so they should also provide vehicles to the customers on time.

HM Shehzad said that if there was a problem with the CKD assembled vehicles due to central bank policy  car companies should have had a 6 month inventory to prevent their production from being affected.

He said that the policy here is that money is taken in advance from Gahg and after that car is given late.

This money is in billions of rupees which are taken at the time of booking the car and then car companies do their business on this money.

Mr Abdul Waheed said that the situation is bad at moment due to the fact that there is no special chip available in the international market which is installed in the car & this has affected the production of cars in Pakistan. Similarly CKD has faced problems due to new policy & freight charges.

Is there a penalty for delayed delivery of vehicles?

Are there any fines imposed on cars companies in Pakistan 4 delay in delivery of cars after payment to car users?

Mr Asim Ayaz head of policy at the Engineering Development Board EDB a government agency told the British news that if there was a delay in delivery of cars to consumers by carmakers after payment Companies are fined what they have to pay customers.

He said that if there is a delay of two months after the delivery time by the company after the customer pays the price then company has to pay the Karachi Interbank Offer Rate Kibor plus 3% to such customer. In case of fine money has to be refunded.

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This means that if the company is unable to deliver vehicle to you within 2 months then as a customer you have the right to receive a late delivery payment.

He said there were hundreds of customers who were paid by company for 2 delay in delivery of car after payment.

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