LAHORE: Car financing in Pakistan has remained low over the last few years, despite cut in the interest rate as it is availed only by 20-25 percent of consumers purchasing auto vehicles in the country, said Pakistan Industrial & Traders Association Front Chairman Tahir Javed Malik.
The option of car financing is only availed by 20-25% of consumers purchasing auto vehicles in Pakistan, as per recent statistics. The period of 2004-2007 had witnessed car financing figures peaking at 70-75% of vehicle purchases in Pakistan.
The process of seeking car financing became more cumbersome and expensive for the consumers of Pakistan. In spite of the reduction in interest rate by the State Bank of Pakistan to boost consumer lending, banks maintained their cautious approach; presently car financing markup rates still amount to 14-18%.
