{"id":66517,"date":"2023-03-22T04:56:48","date_gmt":"2023-03-22T04:56:48","guid":{"rendered":"https:\/\/carspiritpk.com\/?p=66517"},"modified":"2023-03-23T13:36:08","modified_gmt":"2023-03-23T13:36:08","slug":"auto-financing-falls-for-8th-consecutive-month","status":"publish","type":"post","link":"https:\/\/carspiritpk.com\/auto-financing-falls-for-8th-consecutive-month\/","title":{"rendered":"Auto Financing Falls for 8th Consecutive Month"},"content":{"rendered":"<p>Auto financing in Pakistan continued to decline for the 8th consecutive month in February 2023 dipping nearly 9% to Rs 326 billion from Rs 357bn in the same month of the previous year, according to the data released by the State Bank of Pakistan (SBP).<\/p><div class=\"carsp-in-article\" style=\"margin-left: auto; margin-right: auto; text-align: center; margin-top: 10px; margin-bottom: 10px; clear: both; \" id=\"carsp-837748123\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3921992284533937\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-3921992284533937\" \ndata-ad-slot=\"2279435244\" \ndata-ad-format=\"auto\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div>\n<p>Analysts believe car financing will continue to be sluggish in the upcoming months as a result of a sharp increase in monthly payments brought on by skyrocketing interest rates, rising vehicle prices, and delays in vehicle delivery due to plant closures.<\/p>\n<p>Local assemblers have continued to cease production due to parts &amp; component shortages following the central bank&#8217;s decision to impose tariffs on imported parts and kits in an effort to dampen vehicle demand. Furthermore, the interest rate now stands at a staggering 20%, which used to be just 7% in March 2020.<\/p>\n<p>Plus the current strict auto financing conditions which were implemented by SBP in September 2021 also sway plenty of buyers away. The tightened conditions render as:<\/p>\n<ul>\n<li>The minimum required down payment was increased from 15% to 30%.<\/li>\n<li>The maximum tenure of auto financing was reduced from 7 years to 5 years.<\/li>\n<li>The maxi\u00admum debt-burden ratio, allowed to a borrower, was decreased from 50 to 40%.<\/li>\n<li>Auto financing limits availed by one person from all banks in the aggregate, not to exceed Rs 30 lac at any point in time.<\/li>\n<li>Financing for imported vehicles is completely prohibited regardless of engine capacity.<\/li>\n<\/ul>\n<p>According to Samiullah Tariq, head of Research Pak Kuwait Investment Company, in the midst of record inflation, banks are issuing loans at rates that are up to 5% higher than the Karachi Interbank Offered Rate (Kibor), making it extremely difficult for the buyers to afford higher monthly installments.<\/p><div class=\"carsp-content\" style=\"margin-left: auto; margin-right: auto; text-align: center; margin-top: 10px; margin-bottom: 10px; clear: both; \" id=\"carsp-1301426631\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3921992284533937\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-3921992284533937\" \ndata-ad-slot=\"2279435244\" \ndata-ad-format=\"auto\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div>\n<div class=\"carsp-after-content\" style=\"margin-left: auto; margin-right: auto; text-align: center; margin-top: 10px; margin-bottom: 10px; clear: both; \" id=\"carsp-1194721071\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3921992284533937\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-3921992284533937\" \ndata-ad-slot=\"4734905637\" \ndata-ad-format=\"auto\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Auto financing in Pakistan continued to decline for the 8th consecutive month in February 2023 dipping nearly 9% to Rs 326 billion from Rs 357bn in the same month of the previous year, according to the data released by the State Bank of Pakistan (SBP).<\/p>\n","protected":false},"author":2,"featured_media":66519,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[7,3],"tags":[1971,2798],"class_list":["post-66517","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-pakistan","tag-car-financing","tag-sbp"],"_links":{"self":[{"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/posts\/66517","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/comments?post=66517"}],"version-history":[{"count":0,"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/posts\/66517\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/media\/66519"}],"wp:attachment":[{"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/media?parent=66517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/categories?post=66517"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/carspiritpk.com\/wp-json\/wp\/v2\/tags?post=66517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}