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What is car mafia? How car mafias effect the price range? | Digital Pakistan

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What is car mafia?

How car mafias effect the price range?

Cars are not just a conveyance source but an indicator of
social status
and a great topic of conversation. In Pakistan, the infrastructure of car manufacturing depends on the imports. Only some parts are assembled here. Cars have always been expensive in comparison to the other countries. But, it took a hysterical increase from previous years.
Taxes were implemented
prices were raised and the overall sales went down. The cars prices have reached alarming limit. But what caused all the increase in prices?

are one big reason but there are more shocking facts attached to it. We call it the car mafia!

Since, cars are not manufactured in Pakistan. The only option left is to import them. But, there are no effective standards set from government side. A car, before reaching to its dealer line, passes so many other channels. With each pass, price is raised and the final price becomes too expensive to afford on an average.
Import evaluations increase the cost.
In local industry

the raw material and parts
are expensive due to the dollar rising. Federal excise duty is imposed followed by
sales tax
Add workers welfare funds and workers participation funds to it, all that makes the overall price high.
In Pakistan, you do not simply buy a car
and ride back to home. Paperwork takes a lot of time, sometimes months. But, if you really want to get it immediately done then you will be asked to pay heavy amounts in the form of premiums. That also is an expense on buyer side.

So, what could be the solution to all these problems? Buying a
second hand car
Let’s see if we can make a deal!
In Pakistan, there is no set standard of quoting prices of used cars.
Sometimes, the dealers themselves raise the prices for a car that seems to make more profit. As a result, the same car becomes most desirable and expensive on the second hand market. In fact, the price of a used car is adjusted according to the new car price. The dealers are making great business out of such deals in the form of heavy commissions.

Optimal Solution?
Unfortunately, ‘Made in Pakistan’ has lost its manufacturing quality. Government does not provide any aid to dealers and no subsidiary policy is available. Local manufacturing will help to control the car prices. But, with no control on quality maintenance, buyer trust will keep its loose. Rather, a system may be developed that makes a consumer proud to be a part of it.

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