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Where Used Cars Have More Lasting Value Than Money

A falling currency, protectionist market, and inflation have created a frenzied market for automobiles in Pakistan.

From
The U.P Morr bazaar in New Karachi where used cars are sold on Sundays.

The U.P Morr bazaar in New Karachi where used cars are sold on Sundays.

Photographer: Asim Hafeez for Bloomberg Markets

Pakistan is an unusual place for cars. You can buy a new vehicle, drive it for years, and sell it at a higher price.

Muhammad Rameez, head of sales at Foundation Securities Pvt., says he purchased a new hatchback from the local unit of Suzuki Motor Corp. in 2019. After driving it 12,000 kilometers in Karachi, Rameez got it valued three years later at 65% higher than the original price. A Toyota Corolla purchased new for 2 million rupees ($8,766) five years ago can be sold in the used car market for 3.2 million rupees today, an increase of 60% before adjusting for inflation, according to Karachi-based Optimus Capital Management Pvt.