Popular models in Pakistan often come with a waiting period, sometimes a few weeks and sometimes several months. That raises practical questions when a bank is involved. Does the bank pay at booking or at delivery? When do your installments start? And who pays if the manufacturer raises the price while you wait? This guide walks through the process and the points to settle before you book.
Ready delivery versus booking mode
With a ready-delivery car, the dealer has the car in stock, the bank pays once your financing is approved, and you take the car within days. With booking mode, the car is ordered from the manufacturer and delivered later. Many banks finance both, and some, such as Sindh Bank, mention booking-mode financing explicitly. Ask the bank which it supports for your model and dealer before you pay any booking amount.
When the bank pays, and when installments start
Practice differs between banks and products. Some banks pay the manufacturer or dealer in full at the time of booking, so the car is fully paid and its price is usually locked. Others pay closer to delivery. When your installments or rentals begin also varies: with some arrangements they start only after delivery, while others start earlier, and Islamic banks, which cannot charge rent on a car that does not yet exist for you to use, structure the waiting period differently. This is the most important question to put to the bank, because paying installments for months before you have a car changes the real cost considerably. Get the answer in writing.
What happens if the price goes up
Manufacturers in Pakistan have raised prices many times in recent years, often linked to the exchange rate. Whether a price increase affects you depends on the manufacturer’s booking terms. In general, a car paid in full at booking is protected at that price, while a car booked with a partial payment may be subject to the price on the date of delivery or invoicing. If the price rises and is not protected, you will need to pay the difference, and the bank will not automatically increase the financed amount, especially if you are already at the PKR 3 million limit. Read the manufacturer’s booking form for its price-protection clause, and ask the dealer to confirm which applies to your booking.
The premium trap
When waiting times are long, sellers sometimes offer immediate delivery for a premium over the official price, known in the market as “own money”. Banks finance the official invoice price, not the premium. The premium has to come from your own pocket on top of the down payment, and it buys you nothing in resale value once the waiting period ends. If you pay one, get a proper sale document and make sure the car is transferred correctly. Where you can wait, booking through an authorised dealer at the official price is almost always cheaper.
Rates during the wait
If your financing rate is variable, the rate applied may depend on when the bank disburses. A long wait during which KIBOR rises can raise your installment before you have even received the car. Ask whether the bank fixes the rate at approval or at disbursement. Our guide to KIBOR and fixed versus variable rates shows how much a percentage point is worth.
Cancelling a booking
If you change your mind or your circumstances change while waiting, cancellation is governed by the manufacturer’s terms and by your agreement with the bank. Manufacturers may deduct a cancellation charge, and the bank may charge fees for unwinding the financing. Check both before you commit.
Checklist before you book
Get the bank’s in-principle approval before paying a booking amount, so you know the financing will go through. Ask when the bank pays, when installments start and whether the rate is fixed at approval. Read the manufacturer’s price-protection clause. Keep the booking receipt and proforma invoice, which the bank will need; our documents guide lists the rest. And check the monthly amount for your model in the installment plan calculator, bearing in mind the SBP limits that apply however long you wait.
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