Govt to introduce new car financing scheme under upcoming auto policy

ISLAMABAD: The federal govt has planned to introduce a new car financing scheme under auto policy 2021, with a lower down payment for the citizens willing to buy the cars for the first time, ARY News reported. 

The scheme is aimed to facilitate customers who are unable to buy a car after major price hikes during the past few years.

Announcing the main points of the new auto policy, Federal Minister for Industries and Productions, Khusro Bakhtiar, said the leasing process is being further eased to facilitate the buyers. “New buyer has to make 20% downpayment for buying the car under 1000cc.”

The minister said the buyer has to get the vehicle registered against his or her name under the scheme.

“The facility could boost sales in the auto industry which ultimately create business and employment opportunities,” he said, adding that the facility was currently being discussed with stakeholders.

New auto policy to decrease the price of 660cc vehicle by Rs105,000, while the price of 1000cc autos will be decreased by Rs142,000.

Read more: TAX ON PHONE CALLS EXCEEDING 5 MINUTES, RELIEF FOR 1000CC CARS : TARIN WINDS UP BUDGET DISCUSSION

The Minister for Industries and Production said that the notification regarding a reduction in the prices of vehicles will be issued in the next few days by the govt.

Under the new policy, the govt is eyeing to produce 0.5 million vehicles yearly, the minister said. The new auto policy to be presented before the federal cabinet in the first week of August said Bakhtiar.

He said lowering the vehicles’ prices will ultimately increase the demand. The auto industry sector has the potential of Rs1,200 billion, which is paying taxes up to Rs300 billion.