Dealers Of Used Cars Facing Plunging Sales

Car dealers in Islamabad are feeling the pinch of falling sales amid surging prices of new cars and petroleum products

ISLAMABAD, (UrduPoint / Pakistan Point News - 21st Mar, 2023 ) :Car dealers in Islamabad are feeling the pinch of falling sales amid surging prices of new cars and petroleum products.

Many dealers in the Federal capital have not closed a single deal of used car sale during the running month.

According to the Pakistan Automotive Manufacturing Association (PAMA), Pak Suzuki Motor Company only sold 72 of the 273 Cultus cars (1000-CC) produced in February. Similarly, only 93 out of 599 pieces of WagonR produced in February were sold. The PAMA data also revealed that the sale of all other car manufacturers has plunged in the last two months The dealers believe the high prices of new cars have increased the resale value of used cars, making them out of the reach of potential used-car customers.

The high-interest rates and the financing cap of Rs 3 million and above have also affected the overall demand for cars, the dealers of used and new cars added.

Muhammad Awais, a car dealer in G-8 Markaz, said Indus Motor Company, Honda Atlas Cars, Lucky Motor Corporation (KIA), Pak Suzuki Motor Company, and Hyundai Nishat Motor havel recently increased their car prices significantly.

However, car manufacturers have also been experiencing record low sales for the last two months, leading to a reduction in production.

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For Awais, rising prices of petroleum products have increased the operating costs of used cars, making them less attractive for consumers to buy. "People understand that used cars not only consume more fuel, but also burden owners with extra maintenance cost."