Import of used vehicles: PAAPAM conducts study to highlight flaws

Purchase of second-hand imported cars comes with risks

LAHORE: There is no doubt that there has been a surge in the import of used cars in Pakistan. While the local industry continues to oppose the influx, a study on used “Car imports and its impact on domestic industry” prepared by Pakistan Association of Automotive Parts and Accessories Manufacturers (PAAPAM) stated that consumers are at a disadvantage while opting to go for this choice.

The study states that consumers face a variation in price or quality in the cars available at auctions or small used car dealerships.

In many cases, consumers end up paying a high price for a vehicle that ranks very low in terms of quality score allotted by the Auction House in Japan, stated the study. Additionally, in many cases, the importer tampers with the odometer – that conveys the mileage – and deceives the consumer.

The study added that purchase of such cars often means consumers have to blindly trust their dealers, since these cars are not backed by reliable manufacturers.

Citing additional problems, the study mentions that there is no channel ensuring availability of spare parts at fixed prices, so some parts have to be arranged from Japan or Singapore at exorbitant costs.

The study also mentions how maintaining these vehicles in Pakistan is a difficult ordeal since they not are designed to withstand the rugged roads of the country.

The study disclosed that the constant replacement of 3-5 year old cars in Japan is triggered through a system of Motor Vehicle Inspections introduced by the Japanese government. The heavy cost and complexity of the Motor Vehicle Inspection system and strict emission test standards result in drastic reduction in the worth of 3-5 years old vehicles.

Published in The Express Tribune, April 30^th, 2015.

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