Govt to Take Strict Action Against Anyone Charging ‘Own Money’ on Car Sale

Advisor to the Prime Minister on Commerce, Abdul Razzak Dawood, has said that the government is planning to cancel the registration of dealers charging ‘own money’ to the customers on selling new cars.

While talking to the media, the PM advisor said, “I discourage the unnecessary charging of ‘own money’ and I have raised this matter with the stakeholders. We are chalking out a plan with regard to canceling the registration of dealers who are involved in this business.”

Notably, the Finance Minister has also asked the advisor to sit with the stakeholders and address this issue as soon as possible.

‘Own money’ is an illegal selling practice widely prevailent among car dealers across the country. This practice is to exploit the buyers, who are aware of it most of the times.

The dealers charge buyers the ‘own money’ by saying that the money is going to the company. However, this additional money is excluded from their profit margin given by the automobile manufacturers.

The reason buyers are willing to pay this additional sum is that they do not want to wait for months to drive their new car. In order to get the car immediately, they willingly cave into the exploitation by the car dealers.

It needs to be mentioned here that the Automotive Development Policy (2016-21) clearly states that the price and delivery schedule should not be more than two months from the time of booking. However, the customers have to wait for up to six months to get their new vehicle.

Via: Profit

  • why is this illegal? people agree themselves to pay own money to dealers and they know that it’s not being given to the company.The rich people don’t want to wait for months to get the car that’s why they purchase from dealers with extra money.What’s wrong with that?Is the government trying to say that we should give the car to them on the first day for free while the others have to wait for like 6 months?This is a business and stopping it doesn’t make any sense.if you don’t want to pay money to dealers then you should wait 6 months.

    • what is that bull shit to pay own to fulfill dealers abdomen? they dont have any thing else in world to earn money.
      how they have cars available if booking time is 6 month for normal user.
      bcz its mafia of car dealers who do this, and take money from people.
      i am 100% sure dealers of car association have some pre deal with vendor like HONDA , TOYOTA .

    • haram khany ki adat ho tou aesi hi baten nikalti hain. aag tou lagy gi tm dealers ko jab oper ki kamai khatam ho gi.

    • It is because of these car dealers, people have to wait for 6 months because they book with intention to sell on profit, else if end consumers book cars, they should get theirs in 2 months time.

    • This is really not the way to do business. cars should be readily available for the customer all the times with any booking. OR Booking should be free of cost. what a strange companies are taking 100% payment in advance and delivering the vehicle after months Why??? there should be a car against 100% payment not wait……

  • Chay ex-CJ kee tarah inn ko bhi private business main taang araanay ki aadat par gayee hai lagta hai…..

  • Who is Mr. Abdul Razzak Dawood?
    Just PM advisor? we need these people in Ministry.
    Its good to know, we still have some sensible people in advisory.

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