Business

Import of used vehicles: PAAPAM conducts study to highlight flaws

Purchase of second-hand imported cars comes with risks

Our Correspondent April 29, 2015

Purchase of second- hand imported cars comes with risks. CREATIVE COMMONS

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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COMMENTS (5)

Dani | 8 years ago | Reply @Gutka/Mainpuri: So it's a crime to criticise your industry, I thought that's the way they can know where they need to improve themselves and grow. P.S I'm a patriot and that's the only reason I've been using locally manufactured cars containing parts made by these imbeciles whole my life.

Valuation | 8 years ago | Reply PAAPAM a rated trade body talking about un-regulated, illegitimate product and business model. Cars are loved/dreamed about asset of the youth in our part of the world. Despite the odds about roads to drive, youth will own, rent, lease cars any how. The Kei family of disposable cars made for the Japanese domestic market, with no spares made at all. After fourth inspection of the car its traded in with another new car. This disposable car find its way to Pakistan or other Asian/African markets. PAAPAM should propagate in collaboration with JAMA subsidy/support on how to buy a new Japanese car, or a used Japanese car, made in Japan, for the Japanese. Ask JAMA what Made in Japan means. It is made for the specs., of the Japanese consumer. Ask any port authority or WCO Customs Office, whether we can import a used car of 4/5 years or more. What is the valuation/appraisal for Custom Assessment. Whether it is allowed to be shipped by ocean freight, or air freight. What is the depreciated price for claiming duty. I suggest PAAPAM should visit the annual Tokyo Motor Show the organisers of he show for more than six decades annually. They will host PAAPAM with free ticket, and Japanese hospitality for knowledge about how to handle a Japanese waste to a foreign country, which they are not even allowed to throw in the sea. The trash comes to Pakistan, with value manipulation. This car is without any disclaimer, warranty, etc., because this is trash. PAAPAM come to Tokyo Motor Show with all your family and learn how you can take a car with you which is used for 6 years.