If there is any car in Pakistan which is like a hard cash, then that is Honda City. No matter when or how did you buy it, its walking cash. You can always convert it into cash by selling it over the buying price anywhere in the country.
My cousin moved to Pakistan in 2009 and bought a new Honda city for 1.3 million. He drove it in various states of illegality into various stationary and non stationary objects over the past 13 years. He had it repainted and endlessly repaired.
He is selling it for 1.6 million. Yes go figure.
That’s due to inflation. Cars are depreciating assets, some people say but not with the Honda city. In 2009 pkr was trading at 65 and today it is hovering around 180. Your Cousin bought Honda city for usd 20000 and sold at usd 8888. Does that make any sense now bro? No, it doesn’t make sense. Your calculation is wrong. Take into consideration depreciation cost and then it will give you true value. Mind it that a car bought in 2009 doesn’t have the same dollar value in 2022.
You are merely stating facts which I am not denying! I just told the actual usd buying price and usd selling price. I didn’t say anything about true value of car after depreciation. I can understand. But ignoring these factors like depreciation costs or TCO, doesn’t give the true value of the asset. So, I think it was a very good deal. He used car for 12 years and sold it at a price which was more than the actual value of the car in 2022.
The true value was the market value he actually received for his car/asset. Depreciation etc is for the books or taxes.
There are many cars sold for much more than their book values. People know that used cars can be repaired overhauled much cheaper than buying a new car in Pakistan. Yeah, and there are many which are bought using car loans on which interest is paid..so many factors. inflation is not the only one.
That’s one reason why car’s are in such high demand in Pakistan: they are a good bet against inflation. My 2012 Honda City cost on road INR1.1 Million now has a resale price of INR 250k approx. Wish I could export it to Pakistan, one observer said from India. This is a very good deal. For those who are suggesting that it should be adjusted against inflation, this is a valid point. But they are also ignoring the depreciation cost of the car. In five years a new car is almost 40-50% depreciated.
A friend bought a corolla in 2005 for 800,000. It got snatched in 2007, recovered in 2013 after being driven in Peshawar for 6 years, driven some more and sold for a million. Whats the big deal? He bought it with 14500 USD and now selling it with 9400 USD. I know someone qho bought a brand new house with 1.5 Million back in 2010 and after using it roughly the worth of that old house is 12 M now. It looks like the value of the car has gone up but in reality, it is the rupee that has gone down. The price of a used item depends on the price of brand new item at the time when the transaction is done. How much is a new Honda City car in 2022?