Used car dealers are making hay while the sun shines. Taking advantage of rupee depreciation, they are making huge profits by increasing the prices of old imported used cars up to 10 percent. According to a survey conducted in the last two weeks, it has been found that dealers of used cars while cashing on the disparity of Pakistani rupee against dollar have increased the prices of used cars from 8 to 10 percent.
More than 10 used car dealers including the auction price bazaar at Sohrab Goth have increased the price of economy segment cars like Mira/Suzuki Kei by up to Rs 30,000 to Rs 40,000. Similarly, the price of Vitz/Passo has also been increased by Rs 55,000 to Rs 65,000, while they have increased Rs 125,000 to Rs 140,000 in the price of Sedan like premio/allion.
Also, the dangerous practice is that they don't demand any National Identity Card or National Tax Number from the customer, nor any other document, and are selling these junk cars simply on transfer letters. It is worth adding that these old used cars are already being sold at higher prices than locally made new cars while the consumer has complained over unchecked price hike of old used cars. "It is sad that concerned authorities have failed to control frequent price increase of imported used cars," said a customer.
It has also been revealed during the survey that dealers are still holding on their old stock of 5-year old vehicles and now selling them at new rates. Sources disclosed that used cars' prices are deregulated and not fixed, with the result that prices vary from showroom to showroom. Moreover, dealers don't offer any warranty and they don't give any after sales service.
"Government's policies have proved lethal for the local industry and around 2.2 million people employed in auto sector are at the risk of losing their jobs due to fear that the decision of cut in age limit of old used cars will be taken back," said a source associated with local auto industry. This latest price increase shows that these dealers don't pay any heed on the concerns of consumer and are bent upon fleecing them. Earlier, failing to checkmate the decision of used cars' age limit cut by the government, the dealers increased the prices of five-year-old imported used junk cars up to 14 percent.
The increase in the price of Mira/Suzuki Kei was up to Rs 55,000; Vitz/Passo prices were increased upto Rs 80,000; Axio's price increase was up to Rs 110,000; and Premio had a price increase of up to Rs 160,000. Interestingly, All Pakistan Motor Dealers Association (APMDA) always portray itself as one of the well-wishers of Pakistani nation but actually is busy making profit through imported used cars stocks/investment. This clarifies how much love they have for the common man of Pakistan, the source said.
On the contrary, it has been found that the prices of locally made new cars are stable and did not have any price increase for quite some time despite that the US$ has touched new record of disparity. Only Honda Civic had price revision due to launching of its new model with additional accessories and features.
It is the need of the time that the government should act prudent and while considering the strengthening of the Yen against US dollar in the last few years must revise used car duty slabs which were fixed in 2005, source said adding that the revision of used car duty slabs will let the consumer know how they are being fleeced by the mafia of used car dealers.
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