Getting a Car on Installment Without Bank in Pakistan

Want to buy your first car but don’t have sufficient money to pay upfront costs? Don’t get upset; you can get your dream car in installments without bank lending in Pakistan.

This blog post will take you through the process of buying a car in installments without the involvement of the bank.

Why Should You Choose an Installment Plan?

Buying a car without installments can be a considerable financial problem in Pakistan. To cope with this, many private companies offer a variety of installment options with adjustable terms and conditions for people wishing to buy a car.

The ability to divide the overall cost of the car into reasonable monthly installments is a fundamental advantage of these installment plans. This method relieves buyers’ financial pressure, allowing them to manage their budgets more effectively.

Best Leasing Companies in Pakistan for Car Financing

There are various legitimate leasing firms in Pakistan that provide reasonable financing solutions for people wanting to buy a car on installment plans without using a bank.

• ORIX: This organization provides car financing services along with other variety of financial services and has a solid reputation for trustworthiness and reliability.
• Saudi Pak Leasing Company: A well-known corporation famous for its flexible car financing options and customer-friendly policies.
• First Prudential Modaraba: With its customer-focused approach, this company provides affordable and adaptive vehicle finance options.
• Natover Lease & Refinance Ltd: This company offers customized financing and leasing solutions to meet the demands of a wide range of customers.
• Ibrahim Leasing Ltd: This company enables people to get their ideal car with no fuss by providing unique financial options.
• Pak Wheels Car Leasing: It is well-known for its extensive variety of leases and car options, making it a top choice among many clients.
• Paramount Leasing Limited: Paramount is well-known for its great customer service and quick car leasing process.
• Greys Leasing Limited: This company is a fantastic choice for future car owners due to its reasonable rates and flexible terms.
• First Habib Modaraba: With a large network and solid reputation, this company is a popular leasing firm among car lovers.
• Pak. Gulf Leasing: This company is well-known for its simple car leasing methods.
• Asian Leasing Corporation: This organization is a convenient option for many because it provides a wide range of financing options.

How to Apply for a Car Installment Plan

For those looking for alternatives to standard banking techniques, applying for a car installment plan through a private company is the best option. Here are the simple steps to do this:

Research

Start your research for a reputable leasing firm that offers cars on installments without using a bank. To do this, consult with family members or friends who have used this service, look for recommendations, and read online reviews.

Application

Once you’ve narrowed down your options, fill out an application form and send it to your selected leasing business. The application form usually requires adding your name, credit history, employment history, address, and other basic information needed to find out your eligibility.

Documentation

After application submission, be prepared to give the required documents, including an ID card, income proof, bank statement, residence proof and domicile proof.

Submission and Review

Once the company receives your application and documents, they will conduct a background check and review your credit score to verify your eligibility. Prior to approving your application, they may seek additional information or documentation.

Approval and Contract

If your application is approved, you will be sent a contract outlining the terms and conditions of the loan.

Down Payment

When you sign the contract, you will be required to make an initial down payment, which is generally 20% (can vary depending on the company) of the total price of the vehicle.

Repayment

It is critical to keep up with your payments in order to avoid fines due to missed or late payments.

Following these steps, you’ll be well on your way to getting your dream car via an affordable installment plan.

Advantages and Disadvantages of Buying a Car on Installment

Getting a car in installments comes with disadvantages along with advantages. 

Advantages of Buying a Car on Installments

• Affordable: Car installment plans offer an affordable path to owning your dream vehicle without the need for a lump-sum payment.
• Lower Interest Rates: These private companies often provide lower interest rates, making car ownership more cost-effective.
• Low Initial Down Payments: These installment plans typically require lower initial down payments, reducing the initial financial burden.
• Flexible Monthly Payments: You can get flexibility in monthly payment arrangements and manage your budget easily.

Disadvantages of Buying a Car on Installments

• Long Contract Length: Some companies’ car installment plans may have long contract durations.
• Additional Fees: There may be extra fees if you decide to buy from another dealer or break the lease early, increasing the overall cost.

What Should You Do If You Can’t Get A Car Installment Plan?

If you can’t obtain a car on installment, there are a number of other options for you: 

• One option to consider is working directly with an auto dealership that provides in-house financing choices.
• Other options are peer-to-peer leasing or financing platforms, including Prosper, Funding Circle, LendUpper, BlockFi, etc.

Best Car Financing Banks in Pakistan

Many banks in Pakistan also offer car leasing with adjustable terms and conditions.