Cars That Are More Expensive Than Property

Cars are generally considered a mode of transportation meant to take you from point A to point B in a rather dignified manner. Around the world cars have a certain cost of purchase which depreciates over the period of time.

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As the car becomes old, it requires frequent maintenance as parts tend to lose their efficiency due to wear & tear. Plus in developed markets it’s mandatory to keep the car in utmost working order which is a hassle of its own due to which people prefer trading their vehicles in favor of new ones. Furthermore as the technology moves on, newer cars offer features that are not available in the older models, and with government bodies keeping a strong check & balance on safety, emissions, fuel efficiency and other key areas, customers always get a better deal buying a newer car replacing their slightly older ones. In most cases new models are priced lower than the preceding model due to immense competition in developed markets.

The latest generation Honda City was priced lower than the existing model

However in our market cars are considered as an asset the value of which appreciates over the period of time instead of depreciating. Due to the absence of proper public transport, people prefer to have a car & opt it as their daily commuter or buy more than one car dedicated for different people in the family. Plus due to protectionist government policies we haven’t yet able to develop a competitive automobile market as the industry is hostage in the hands of 3 players which operate as a cartel by safeguarding each others’ interests & not introducing rival products in terms of price or segment.

Related: Future of Auto Industry with No Government Support

Furthermore the prices of cars are revised ever so often due to various reasons including depreciation of currency as well as taxes & duties imposed by the government. In the last 30 months automakers in Pakistan have revised car prices by nearly 16 times and each time the price of a vehicle is increased, it affects those available in the used car market as well. You may come across used cars which are being sold for more than their purchase price. And ironically the prices of new cars in recent years have increased so much that they have become more expensive than a residential property.

Today in Karachi, a small (new) apartment cost between PKR 4 million to PKR 6 million whereas medium range new property cost between PKR 6 million to PKR 12 million. Off course there is a vast variation in prices particularly when you consider the area, the accommodation and various other factors however the idea is that the sort of money one spend in buying automobiles (which are considered consumables elsewhere) can buy you a decent residential property.

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Listed below are cars that are available for over PKR 4 million in our market. And let’s not bring in the likes of German luxury cars into debate which have always been expensive however the sort of cars that are mentioned below are in no way considered as luxury vehicles in any part of the world and are in fact rather ordinary mass produced vehicles.

Make/ ModelPriceOrigin
Honda Civic 1.5 RS TurboPKR 4,599,000Local Assembled
Honda Civic 1.5 VTEC Turbo OrielPKR 4,349,000Local Assembled
Honda CR-V 2.0 CVTPKR 10,700,000Imported
Honda Accord 1.5L VTEC TurboPKR 11,999,000Imported
Toyota Fortuner 2.7 GPKR 7,699,000Local Assembled
Toyota Fortuner 2.7 VVTiPKR 8,399,000Local Assembled
Toyota Fortuner 2.8 Sigma 4PKR 9,149,000Local Assembled
Toyota Hilux Revo G 2.8PKR 5,899,000Local Assembled
Toyota Hilux Revo G A/T 2.8PKR 6,199,000Local Assembled
Toyota Hilux Revo V A/T 2.8PKR 6,549,000Local Assembled
Toyota Rush G A/TPKR 5,220,000Imported
Toyota Rush G M/TPKR 5,040,000Imported
Toyota Camry Low GradePKR 16,050,000Imported
Toyota Camry High GradePKR 16,500,000Imported
Toyota Prius SPKR 8,370,000Imported
KIA Grand Carnival LXPKR 4,899,000Imported
KIA Grand Carnival EXPKR 6,499,000Imported
KIA Sportage FWDPKR 4,899,000Local Assembled
KIA Sportage AWDPKR 5,399,000Local Assembled
Hyundai Grand Starex GLPKR 4,549,000Imported
Hyundai Grand Starex GLSPKR 5,099,000Imported
Hyundai Grand Starex GLXPKR 5,899,000Imported
Hyundai Ioniq GLSPKR 6,399,000Imported
Hyundai Santa Fe GLSPKR 18,500,000Imported
Isuzu D-Max V-Cross 3.0PKR 5,800,000Local Assembled
Isuzu D-Max V-Cross A/T 3.0PKR 6,100,000Local Assembled

Related: The Importance of Keeping Up with Time

The prices of these vehicles are way out of the reach of many and this is one of the key reasons why sales of new cars in Pakistan are constantly on a decline. These vehicles are available for much lesser price in other parts of the world and if somehow the government is able to bring the prices down by slashing some taxes and ensuring true localization, prices of cars will come more within the reach of masses and eventually sales will begin to improve.

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