Exploring the used car market in Pakistan: where to buy a used car?

Used car sales have seen a surge in Pakistan post-COVID, thanks to the ever-increasing prices of new vehicles. There are several ways you can buy used cars in Pakistan, such as online portals and brick-and-mortar dealerships. There are pros and cons of each way of buying, which we will delve into in this informative blog.

Pakwheels

Pakwheels is arguably the pioneer of online classifieds of vehicles in Pakistan. You can find both brand-new and used vehicles here, listed by motor dealers as well as individual sellers. There are currently over 62,000 vehicles listed for sale throughout the country, which shows the level of utility people derive from the platform.

Pros

1. Large variety of vehicles for buyers so a wider pool means better choices and options
2. Free to use as posting and viewing an ad is free
3. Wide access since millions of people use PakWheels to search for their next vehicle
4. Price references such as Pakwheels can be used to research market trends and prices
5. Pakwheels has many ads of vehicles that have already been inspected
6. You can book a Pakwheels inspection for a vehicle that you like

Cons

1. The algorithm favors paid ads and the cars in the “featured ads” category get dramatically more reach than their free, organic counterparts
2. Prevalence of dishonesty as many sellers hide the issues in their cars, often leading to uninformed purchases
3. No accountability since Pakwheels takes no responsibility for any problems that arise from a purchase from its platform

OLX

OLX is another classifieds website based out of Norway that has the category of used cars. All kinds of vehicles are listed here, including bank-leased vehicles and scrap vehicles.

Pros

1. Big variety of options
2. Free to post ads for sellers and free to view for buyers

Cons

1. Not as hyped as Pakwheels so limited exposure
2. OLX asks users for commission if a deal goes through their platform, which is unethical
3. Leased vehicles being sold are against the law

Social Media Platforms

Recently, many dealers and individuals have started to use social media platforms to sell their vehicles. The Facebook marketplace has turned into a mini-market now considering the number of listings it has. Dealers have made Instagram profiles that they use to publicize their stocks.

Considering the millions of users who visit these platforms every day, it is a great way of selling your vehicle.

Pros

1. Large exposure as many people use social media
2. Brand image building for dealerships, for example, Road Soul in Lahore
3. Direct communication channels encourage transparency between sellers and buyers

Cons

1. Scams are common wherein dubious sellers demand advance payments and disappear afterward
2. Lack of quality assurances wherein there is no direct service to verify the cars
3. Misunderstanding vehicle information can lead to regrettable purchases for buyers

Physical dealerships

There are thousands of used car dealerships spread through all cities of the country. Trusted dealers often have reputations that exceed customer expectations and accordingly, they can charge premiums for giving a one-spot purchasing experience for customers.

Pros

1. Numerous options within a single roof mean greater variety to choose from
2. Certified pre-owned vehicles are available in dealerships that help buyers assess the car’s condition
3. Convenient process as most dealerships take responsibility for the car’s documentation and other legal processes including title transfer etc.
4. The ability to trade in a previous vehicle adds to the convenience as buyers can sell their car and buy a new one in one go
5. Dealers often offer warranties and buy-back clauses

Cons

1. Dealers often inflate prices to cover their overhead expenses
2. Dealers’ vehicles are often repaired and these repairs are hidden or understated to secure a sale, which hurts buyers in the long run
3. Dealers often charge a commission on top of the car’s price as a markup for their services
4. You have to physically visit the dealership to buy the vehicle as opposed to getting a car inspected by services like Pakwheels after seeing an online ad
5. The cost of purchasing often goes up when you visit different dealerships in search of your next vehicle

Peers, friends, and family

Buying from friends and family is one of the oldest tricks in the book. Friends and family often have a degree of trustworthiness and transparency that you cannot obtain from private sellers in the market.

Pros

1. Chances of getting a better price are higher when buying from friends and family as they can leave you significant sums as part of negotiations. Additionally, since they don’t have overhead expenses to cover like a physical dealership
2. Familiarity with the car’s ownership means that you can be sure of the car’s history and usage patterns etc.
3. The emotional stake and trust of buying from a friend or family ensures you have peace of mind

Cons

1. This emotional trust can backfire if your friend or relative willingly hides the drawbacks of the car and you cannot confront them about it later on
2. There is no guarantee that the car’s condition will be as told, so it is advised to get the car checked regardless of whether the seller is a good friend or not

Conclusion

This was a rundown of some ways you can buy used cars in Pakistan. Is there any other way that you use that we did not mention? Let us know in the c