Auto industry in Pakistan remained in dire straits for over a year now as rupee depreciation and huge cost hamper overall sales, but now Honda and KIA have come up with zero financing, and this is the first of its kind in the auto industry.
Honda, one of the leading auto giants, came up with a different scheme. Auto companies often external financing to fund their operations and investments but now Honda introduced self-financing, which involves using its own resources to fund operations and sales rather than relying solely on external sources of capital.
The company’s groundbreaking financing plan is no less than a revolt in the automotive industry as company started offering Honda BR-V, and Honda HR-V.
With the latest move, Honda aims to make vehicle ownership widely available and reasonable.
Sky-high car prices, other than stringent rules introduced by authorities pushed a challenging environment for both buyers and carmakers. Honda, and KIA however now decided to cope with the crisis with first-of-its-kind financing plans, shattering decades-old traditional norms.
In contrast to elevated markups, Honda’s zero-interest finance plans will surely help people get their hands on new four-wheelers. Under the scheme, buyers will have up to 24-month repayment schemes.
Lucky Motors, the assembler of KIA cars, came up with a plan allowing customers to pay in an 18-month scheme however Honda allows 24-month repayment for BR-V and HR-V models.
Despite the groundbreaking move, not all customers will rake up benefits as the companies are only offering lesser famous vehicles, and basic reason is surplus inventory that they want to dispose of.
