Pakistan Real Estate Times - Pakistan Property News

LAHORE: The sales of brand new and used cars have declined by around 90 percent in the last two months due to high prices and low availability of finance by the banks, the car dealers told Daily Times on Monday. They said that the sales of new, used and reconditioned vehicles have declined due to increasing prices. They said that recent increase by various automobile manufacturing companies have resulted in decline of sales of new cars while tightening of finance by the banks also affected the sales negatively. The local automobile manufacturing companies have increased the prices almost 35 to 50 percent, which pushed up the prices of used and reconditioned vehicles as well. The recent increase in prices of used and reconditioned vehicles also caused a decline in sales, said Rizwan Goraya a showroom dealer of Jail Road. He said that for more than last one month, he had sold only one used and one new vehicle. “I used to sell around 20 vehicles in one month but now the sales are drastically down,” Goraya said adding that if the trend continues then the showroom owners would have no option but to close business. Another car dealer Abdul Jabbar said that the prices of re-conditioned vehicles have also increased. “An imported vehicle that earlier was available for Rs 300,000 is now being sold for Rs 425,000,” Jabbar said. The Jail Traders Association Secretary General, Zafar Iqbal said that people are not interested in selling the cars, as they have to arrange more money for newer models. “If a person is using 1996 model and if he wants to upgrade the model to 2002 then he has to arrange at least Rs 100,000 for the new model,” said Iqbal. nauman tasleem

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