With rising inflation and fluctuating exchange rates, buying a car in Pakistan has become a challenging task for many. However, several brands and financial institutions have introduced installment plans to make car ownership more affordable. This article explores some of the cheapest car options available in Pakistan along with their installment plans, helping you make a budget-friendly decision.
1. Suzuki Alto
The Suzuki Alto is one of the most affordable and popular choices for first-time car buyers in Pakistan. It offers excellent fuel economy and is known for its easy maintenance.
- Price: PKR 2.2 – 2.7 million (depending on variant)
- Key Features:
- Engine: 660cc
- Mileage: 18-20 km/l
- Manual and automatic transmission options
- Modern features like power steering and ABS in higher variants
Installment Plan:
Many banks and financial institutions offer installment plans for the Suzuki Alto. One popular example is Bank Alfalah’s Auto Loan, which offers up to 7-year financing with a minimum down payment of 30%.
- Down Payment: PKR 660,000 (30% for the base variant)
- Monthly Installment: Around PKR 36,000 (for a 5-year plan)
2. United Bravo
The United Bravo is another affordable option, offering a reasonable feature set at a budget-friendly price. It competes with the Suzuki Alto but offers more cabin space and a few extra features.
- Price: PKR 1.7 – 1.9 million
- Key Features:
- Engine: 800cc
- Mileage: 12-15 km/l
- Power windows, rearview camera, and digital speedometer
Installment Plan:
United Motors partners with various banks, including Meezan Bank, which offers an Islamic car financing plan. With a down payment of 30-40%, you can avail of a plan lasting up to 5 years.
- Down Payment: PKR 510,000 (30% for the base variant)
- Monthly Installment: Around PKR 25,000 (for a 5-year plan)
3. Prince Pearl
The Prince Pearl is another economical hatchback that has gained popularity due to its low price and decent features. It’s aimed at the budget-conscious buyer.
- Price: PKR 1.9 – 2.1 million
- Key Features:
- Engine: 800cc
- Mileage: 12-14 km/l
- Touchscreen infotainment system and power steering
Installment Plan:
You can finance the Prince Pearl through Askari Bank’s car finance scheme, which allows up to 5-year installment plans with flexible down payment options.
- Down Payment: PKR 570,000 (30% for the base variant)
- Monthly Installment: Around PKR 27,000 (for a 5-year plan)
4. Suzuki Wagon R
The Suzuki Wagon R offers a balance between affordability and practicality. It is slightly more expensive than the Alto but offers more space and power, making it a popular choice for families.
- Price: PKR 3.0 – 3.5 million
- Key Features:
- Engine: 1000cc
- Mileage: 16-18 km/l
- Spacious interior and dual airbags in higher variants
Installment Plan:
The Wagon R is available on installment plans through banks like HBL and UBL, which offer up to 7-year financing options.
- Down Payment: PKR 900,000 (30% for the base variant)
- Monthly Installment: Around PKR 48,000 (for a 5-year plan)
5. KIA Picanto
The KIA Picanto is a stylish hatchback that’s a little higher on the price scale compared to the cars above but offers excellent features, safety, and a strong brand backing.
- Price: PKR 3.8 – 4.0 million
- Key Features:
- Engine: 1000cc
- Mileage: 15-17 km/l
- Advanced safety features including ABS and airbags
Installment Plan:
You can avail of KIA Picanto through installment plans offered by Bank of Punjab, which offers competitive interest rates and a down payment starting from 20%.
- Down Payment: PKR 760,000 (20% for the base variant)
- Monthly Installment: Around PKR 58,000 (for a 5-year plan)
6. Changan Karvaan
The Changan Karvaan is a budget-friendly van that offers considerable space and utility, making it ideal for businesses and larger families.
- Price: PKR 2.7 – 3.0 million
- Key Features:
- Engine: 1000cc
- Mileage: 10-12 km/l
- Seating for up to 7 passengers
Installment Plan:
Changan Pakistan partners with Faysal Bank, which offers a comprehensive car financing plan with flexible tenures ranging from 3 to 7 years.
- Down Payment: PKR 810,000 (30% for the base variant)
- Monthly Installment: Around PKR 44,000 (for a 5-year plan)
7. Suzuki Cultus
The Suzuki Cultus is one of Pakistan’s most popular hatchbacks, known for its reliability, fuel efficiency, and practicality.
- Price: PKR 3.5 – 4.0 million
- Key Features:
- Engine: 1000cc
- Mileage: 17-20 km/l
- ABS, airbags, and power windows
Installment Plan:
With a minimum down payment of 20%, Suzuki Cultus can be financed through Meezan Bank’s Car Ijarah, offering Islamic financing with competitive monthly payments.
- Down Payment: PKR 700,000 (20% for the base variant)
- Monthly Installment: Around PKR 55,000 (for a 5-year plan)
8. Toyota Yaris (Base Variant)
Although the Toyota Yaris is pricier than the cars mentioned above, it’s an entry-level sedan that offers excellent value for money in terms of features, comfort, and durability.
- Price: PKR 4.5 – 5.0 million
- Key Features:
- Engine: 1300cc
- Mileage: 13-15 km/l
- Advanced safety features and spacious interior
Installment Plan:
Toyota Yaris is available on installment through Toyota’s own financing plans as well as Alfalah Auto Loan. These plans offer up to 7 years of flexible payment options.
- Down Payment: PKR 1.35 million (30% for the base variant)
- Monthly Installment: Around PKR 65,000 (for a 5-year plan)
Things to Consider Before Opting for Installment Plans
While installment plans make car ownership more accessible, it’s essential to keep the following factors in mind:
- Down Payment: Most banks require a minimum down payment of 20-30%, which can be a significant amount upfront. Make sure you have enough savings before opting for financing.
- Interest Rates: The interest rates on car loans can range from 11% to 18% depending on the bank and loan tenure. Make sure to calculate the total cost you will pay over the years, including interest.
- Insurance Costs: Cars financed on installments typically require comprehensive insurance coverage, which adds to the overall cost. Check the insurance premiums before committing.
- Bank Terms: Each bank has its own terms and conditions regarding car financing. Always read the fine print and ensure you understand penalties, early payment options, and other clauses.
Final Thoughts
If you’re in the market for an affordable car in Pakistan but are constrained by your budget, opting for a car on an installment plan is a practical solution. Suzuki Alto, United Bravo, and Prince Pearl are some of the cheapest options, with manageable monthly installments. For those looking for more features and space, cars like the Suzuki Wagon R and KIA Picanto are great choices, though they come at a slightly higher price point.
When selecting the best option, balance the monthly installment, down payment, and your own financial situation. By comparing the various financing options offered by banks, you can find a plan that suits your budget and ensures hassle-free ownership.
