Are you in the market for a used car? Well before you make any decision you should read on and know that buying a used car from the Pakistani used car market is nothing less than “siasat” (politics, diplomacy). Experts have identified what actually increases the chances of fraud in selling or buying a second hand vehicle. Read so you know.
Buying a second hand car in Pakistan is a tempting idea, especially when brand new models can be too pricey and often out of reach. Getting a bank to finance the car is definitely an alternative, where the lease can fill out the cost slowly and steadily, but even then, this practice is best accommodating for people with a good monthly income.
Some dealers in the used automobile market expect their market to overtake the new car business in Pakistan and looking at current trends one may say it has already been overtaken.
Whether you’re buying your dream car used or a normal used car for everyday commutes, Pakistan buyers as well as sellers are in a dilemma: there is great discrepancy in the prices from dealer to dealer. Apart from that, used car sellers, often the ones with more knowledge, use this extra know-how to their advantage and manipulate used.
This results in “asymmetric information” –a dilemma where the buyer is unaware that he may be purchasing a lemon. The seller is more informed about the hidden truths of the used car but by using this information for a one time personal gain the seller disrupts the efficiency of overall market and also looses out on the buyer’s loyalty.
Research has discovered the following about the used car market in Pakistan:
Variations in the used cars market in Pakistan
- A second hand vehicle of the same model and make carries different price tags, with a price difference of 40% to 50%.
- Toyota Vitz 2014, for example, is being sold for Rs. 9 lac by one seller, yet it can cost as much as Rs. 12 lac, when purchased from another dealer. This is confusing.
- Both the sellers have no information why there is so much difference. The sale is mainly dependent on seller’s opinion and is totally subjective, which in most cases is dishonest.
- Such mismatched information can lead to unsuccessful transactions.
- The selling party is always looking at the highest price of a comparable car and even adds one or two percent more. However, the buyer will always look for the lowest price of the desired car. A gulf of expectations is created which results in frustration, time wastage, and false leads for both.
- Moreover, the information provided by sellers does not offer a proper evaluation of the car’s actual condition.
Apart from the above, other barriers for successful transactions include uncertainty over cars. This however is the same concern as that of seller providing less information then needed and buyers lack of knowledge.
One solution to this huge gap of dishonest sales and purchases of used cars is buying used cars from reliable online resources such as Motor Traders, Pakwheels or MyCar.pk. They have their own check lists and put a car into a category accordingly, so when the buyer comes online, a few clicks can get him to his desired purchase. Moreover, some of them even offer car inspection teams for helping you see the car details.
Let the latest of these online websites help you with your sale or purchase of used cars so you can focus on enjoying your ride like you should!