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Auto Financing Drops to Lowest Level in 2022

Despite sky-high inflation and tightened restrictions on auto loans, the impact on car financing in October seems meager. The decline, however, is progressive as the difference between auto financing in June 2022 and December 2022 is sizeable

According to the latest report, auto financing came in at Rs. 345 billion in October 2022, observing a month-over-month (MOM) decline of just 1.4%, and a year-over-year (YOY) decline of 0.1%.

Arif Habib Limited (AHL) highlighted in its report that car financing has reached the lowest level since January 2022. However, the decline is not as substantial as originally anticipated, and chances are that it may rise in the coming months once the economy stabilizes.

On the other hand, consumers are of the view that the State Bank’s restrictions have made it impossible to get a good financing deal. While talking to ProPakistani, a customer stated:

If you buy an average car that costs Rs. 3.8 million, and pay Rs. 1.5 million upfront, then monthly installment is Rs. 98,000, which is huge. Because if one waits and accumulate the same amount for 2 years then there is no need for financing. The last year is just to pay markup. So why even bother with financing?

Car sales showed slight signs of recovery last month. This implies that despite the recent car price hikes and restrictions on car loans, the demand for cars is still fairly high. At the same time, experts reckon that it may never be as high as last year when the car industry was booming.


  • People do not have money to have 2 times meal under the current establishment’s puppet government, how can they afford to finance cars?

    • For your info banks don’t even think of giving loan to client barely meeting his necessities, neither that person even can to get loan apply with empty accounts. Don’t repeat the old fashioned illogical statement. It is the car prices + higher interest to blame. People are still ready to get loan with low interest rate.

    • You are right government and bank mafia looting peoples in Pakistan.
      Courts are sleeping no justice so mafias are ruling the systems

  • Car financing at 16+ interest will squeeze the pockets. This necessity is not that important when it comes to get financing at that exuberant interest rate.


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