We are aware of the fact that the process of exploiting buyers to buy cars from dealers who illegally sell cars is known as own money. In Pakistan this process is taking hold of the poor buyers. Upon asking about their filthy practice and why they do these types of acts ,The dealers simply utter to have no other option to have a money investment. So this the reason of booking the cars before their production to gain huge profits.
The car former chairman Syed Nabeel Hashmi of Pakistan Association of Automotive Parts & Accessories Manufacturers (PAAPAM) shared that the customers own money as the dealers charge by saying that the money is going to the company. This statement is totally wrong.
He further added “Car dealers in Pakistan earn additional Rs.150, 000 to Rs.250, 000 money from own money exploitation on each vehicle they sell to the consumer. This additional sum which they have earned is excluded from the profit margin which the automobile manufacturers have given to dealers. On some cars, like the Toyota Fortuner, the own can go up as high as Rs6 lacs.”
The second cause of this is the unprofessional conduct which is still persistent is as a result of the long delivery time, which the company offers to its consumers. Some customers have to hang around for months to get car, so owing to have the car right away and immediately consumers pay own money to car dealers completely knowing that the dealers are subjugating them .
Customers hold responsible the auto manufacturing companies for the development of the own money practice; they utter that auto manufacturers should build up a speedy means to distribute cars so that this nasty practice would end in the country.
Conversely, the government has worked out a strategy to control this thing.
- Introduced a tax on the transfer of vehicle registration
- The record of the ID of all buyers should be recorded
- Non-tax filers to be punished with extra with-holding tax
The government is in opposition to the illegal scheme. On the other hand, the strategy is still not in practice for the reason that consumers are still buying cars while paying own money to the car dealers in Pakistan. Consequently if consumers desire to sort out this questioning practice, they should lend a hand to the government with full commitment.
The auto policy 2016-21 would also assist in getting rid of own money practice as it will create a center of attention for the foreign auto manufacturers to work in Pakistan, which will accomplish the command of local consumer and set up a more vigorous competition among automobile manufacturers.
Few steps to eradicate own money practice is also taken by Auto manufacturers. The Refusal to book multiple cars on a single CNIC is one of the steps. Most of them are already working on full capacity. There is by now a lot they can do at least at this point.
However ,right now we have to go a long way for all this to come true.The measures are being taken by the government to control this extortion nevertheless perhaps it tends to have a more practical and insistent campaign to tackle these type of dealerships.
