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KARACHI: A 100-basis-point rise in the interest rate to 11.5 per cent in April did not hit buyers’ sentiment, as outstanding automobile loans surged for the 18th consecutive month to Rs369.12 billion, breaking the peak of Rs368bn recorded at the end of June 2022.
According to data from the State Bank of Pakistan (SBP), auto financing by the end of April totalled Rs359.5bn.
Even the US-Israeli war on Iran since Feb 28 did not scare buyers from putting a handsome amount in purchasing costly vehicles, both locally assembled and used cars.
The jump in the SBP policy rate might have made financing a bit costlier, but buyers feel that the lending rate is still affordable. Various packages from assemblers and private banks for affordable car financing are also driving buyers crazy for new vehicles.
