Own money is an illegal selling practice by car dealers in Pakistan to exploit buyers. When asked from dealers why they practice and propagate such lousy notion in the car market, they say that they don’t have any other area in which they invest their money, so that is why they book cars ahead of their production and earn huge profit. Furthermore, the car dealers also charge customers own money by saying that the money is going to the company.

If you book a car in Pakistan, it takes 5-8 months on average to reach your doorstep. So to avoid delays and cut short the delivery time, customers pay a ‘premium’ (own rate) on top of the price of the car. This practice by dealers is unethical and spiteful since dealers and auto manufacturers take advantage of customers by overcharging them in the name of premium.

Own money Hits An All-time High

Despite some efforts by Indus Motors Company (IMC) to reduce and diminish this “premium” practice, dealers are still charging customers extra money. IMC canceled orders of 1300 booked cars recently and gave a refund to the customers involved in this so-called premium scam. However, many Toyota cars are still being sold on premium and in fact, it has hit an all-time high in terms of value.

Not just Toyota, dealers for all local cars have put a premium on almost all major models.

 

Own money on Toyota

  • Fortuner: Rs 700,000 premium with a delivery time of 7-8 months.
  • Corolla XLI (VVT-i): Premium: Rs 150,000, booking to start after 2-3 months.
  • GLI 1.3 VVT-i: Premium: Rs 2270,000 and booking will start after 2-3 months.
  • GLI 1.3 VVT-i Automatic: Rs 200,000 premium and booking will start after 2-3 months.
  • Revo: Premium Rs 500,000 to Rs 600,000 and booking to start after 2-3 months.
  • Altis Grande: Premium Rs 315,000 with booking to start after 2-3 months.
  • Altis Automatic 1.6: Rs 270,000 premium and booking will start after 2-3 months.

Own money on Honda

  • Honda City Prosmetic i-VTEC 1.5: Premium rate Rs 175,000 and available in 7-8 months.
  • Honda City i-VTEC 1.5: Premium rate Rs 165,000 and available in 7-8 months.
  • Honda City Auto i-VTEC 1.3: Premium rate Rs 180,000 and available in 7-8 months.
  • Honda City Manual i-VTEC 1.3: Premium rate Rs 160,000 and available in 7-8 months.
  • Honda City Aspire Manual i-VTEC 1.5: Premium rate Rs 155,000 and available in 7 months.
  • Honda City Aspire Auto i-VTEC 1.5: Premium rate Rs 170,000 and available in 7-8 months.
  • Honda Civic 1.8 Oriel i-VTEC CVT: Premium rate Rs 280,000 with a delivery time of 8 months.
  • Honda Civic i-VTEC CVT: Premium rate Rs 140,000 with the delivery time of 8 months.

Own money on Suzuki

  • Mehran VX Euro II: Rs 25000-30000 with 3.5-4 months delivery time.
  • Mehran VXR Euro II: Rs 20,000-30,000 premium with 3.5 to 4 months delivery time.
  • Cultus VXR: Rs 40,000 premium with 2 to 3 months delivery time.
  • WagonR VXR: Rs 120,000 premium with 4 to 5 months delivery time.
  • WagonR VXL: Rs 160,000 premium with 4 to 5 months delivery time.
  • Swift DLX 1.3 Automatic: Rs 30,000 premium with delivery in 5 months.
  • Vitara GL+: Premium rate Rs 30,000 and delivery in 5 months.
  • Bolan Cargo Van Euro II: Rs 40,000-50,000 with delivery in 3-4 months.
  • Bolan VX Euro II: Rs 40,000-50,000 with delivery in 3-4 months.
  • Ravi Euro II: Rs 30,000-40,000 with delivery in 2-3 months.

Own money on FAW

  • FAW V2: Premium rate between Rs 45,000 & Rs 50,000 with delivery between 2.4 and 4 months.

We also investigated the current situation of car own money on different car dealers in one of the city in Pakistan, it starts from Rs 30,000 (Mehran) up to Rs 250,000 for Toyota.

We also tried to do a car finance from one of the private banks and they also told us there is own money involved but still it will take time from 20 days to 30 days for the car to reach our doorsteps. We were trying to book Toyota XLi 1.3, after getting all information we were actually paying an equal amount of down payment for own money and taxes.

I was unable to understand one point, WHY CAR COMPANIES LIKE TOYOTA, SUZUKI AND HONDA are not delivering cars to the customer instead of dealers to avoid middlemen that will increase companies sale and cars will be available on actual prices. The idea of cars delivery by these big brands is not a new thing. These brands are doing same in other countries like UAE (Dubai), India, KSA etc.

Banks finance teams are also involved in this game to get more top up money from the buyer.

We also talked to one of the companies support center on phone to get their views on own money and they told us we discourage this practice but we can’t provide you with more information.

Since Pakistani courts are so active to actions on public issues, this can be a big case involving big car brands and automotive business.