High interest rate drives demand for used cars

KARACHI: Amid unprecedented 22 per cent interest rate and restrictions imposed by the State Bank of Pakistan (SBP) to curb vehicle demand, consumers have increasingly been seeking used vehicles for auto financing over the past two to three years.

A number of banks have ventured into the leasing and financing of used vehicles, including models up to nine years old. However, high monthly instalments continue to deter many consumers due to affordability issues.

Dealers and banking...