Government is planning to cancel the registration of dealers charging ‘Own Money’ to the customers on selling new cars, said Advisor to PM on Commerce, Abdul Razzak Dawood.
While talking to the media, the PM advisor said, “I discourage the unnecessary charging of Own Money and I have raised this matter with the stakeholders. We are chalking out a plan with regard to canceling the registration of dealers who are involved in this business.”
‘Own money’ is an illegal selling practice widely prevalent among car dealers across the country. This practice is to exploit the buyers, who are aware of it most of the times.
The dealers charge buyers the Own Money by saying that the money is going to the company. However, this additional money is excluded from their profit margin given by the automobile manufacturers.
The reason buyers are willing to pay this additional sum is that they do not want to wait for months to drive their new car. In order to get the car immediately, they willingly cave into the exploitation by the car dealers.
It needs to be mentioned here that the Automotive Development Policy (2016-21) clearly states that the price and delivery schedule should not be more than two months from the time of booking. However, the customers have to wait for up to six months to get their new vehicle.