In a surprising turn of events, car purchases through bank loans in Pakistan have hit a new record, despite ongoing restrictions from the State Bank. The demand for auto financing is surging again, reviving activity in car finance departments at various banks that had been largely inactive over the past few years.BAD NEWS FOR CAR ENTHUSIASTS: PRICE HIKE FOR CHANGAN ALSVIN MODELS
According to industry sources, more than Rs. 250 billion worth of auto loans were issued in a single month, marking the highest figure in the last three years. This surge reflects a renewed public interest in purchasing vehicles through installment plans, even amid economic challenges.
Recent data released by the State Bank shows that auto financing in March increased by 7.5% compared to the same month last year. A key factor behind this rise is the drop in bank interest rates, which have now fallen into the single-digit range, making car loans more affordable and attractive to potential buyers.
Experts believe that while the State Bank’s conditions — such as a maximum loan amount of Rs. 3 million and a mandatory 30% down payment — could slow down the growth of auto financing, other factors are pushing demand upward. A stable exchange rate, improved investor confidence, and public trust in economic recovery are encouraging more people to opt for car loans.
Financial analysts also predict that if interest rates remain low and restrictions continue to ease, car leasing through banks will grow even further in the coming months. The trend highlights how consumers are adapting to financial conditions, taking advantage of favorable loan terms to meet their needs despite regulatory challenges.
This resurgence in auto financing signals a potential rebound in the automobile and banking sectors, offering hope for broader economic activity and consumer spending in the near future.
