Budget Impact: Used Cars Could Become More Affordable

Jawad

30 May 2025

243

Budget Impact: Used Cars Could Become More Affordable

Used car buyers in Pakistan may soon benefit from a substantial price decrease if the proposed changes in the upcoming federal budget are implemented. According to the All Pakistan Motor Dealers Association (APMDA), the Budget 2025 used cars segment is poised for a positive shift that could make vehicles much more affordable for consumers.

APMDA Chairman Haji Muhammad Shehzad revealed that the government is considering lowering import duties on used vehicles and extending the allowed age limit for imported cars from three years to five years. These adjustments are part of Pakistan’s commitment to the International Monetary Fund (IMF) to relax import regulations and stimulate the auto market.

Currently, the combined import duties on used cars range from 96% to a staggering 475%. The budget proposals suggest a gradual reduction in these taxes by around 20% annually over the next five years. This budget impact on used car market could result in a used cars price drop ranging between Rs. 500,000 and Rs. 1 million, making it a significant relief for buyers.

The chairman emphasized that increasing the import age limit to five years would allow more affordable options in the market. For instance, a five-year-old Japanese vehicle is nearly half the price of a three-year-old model, which could drive the prices of small cars below Rs. 2 million, encouraging more buyers. This will enhance used car affordability budget for the average consumer.

With these changes, the used car market changes budget landscape considerably, leading to increased competition among dealers. APMDA projects that vehicle imports might surge to 70,000-80,000 units in the next year, a notable rise from the 30,000 units imported this year. This increase would not only benefit buyers through better used cars discounts 2025 but also boost government revenues.

In conclusion, the budget effect on car prices is likely to make cheap used cars after budget more accessible, encouraging more people to consider pre-owned vehicles. This anticipated used car prices decrease could transform the automobile sector in Pakistan, offering a more affordable option for many.

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