(Car on Installment in Pakistan )using a car in Pakistan has become easier than ever with car on installment plans. Instead of paying the full price at once, you can spread the payment into small monthly installments. Whether you live in Karachi, Lahore, Islamabad, or any other city, both banks and dealers offer flexible options for new and used cars.
EV Charging Stations in Pakistan; A complete guide 2025-
In this article, we’ll explain how car financing in Pakistan works, top banks offering installment plans, and the pros and cons of choosing dealers versus banks.
How Car on Installment Works in Pakistan
The process of buying a car on installment is simple:
- Select the car you want.
- Pay a small amount as down payment (usually 20–30%).
- Bank or dealer pays the remaining amount.
- You take the car home.
- Pay monthly installments until the full price is covered.
👉 Example: Ali from Karachi bought a Honda City. He paid 5 lakh upfront and now pays 40,000 per month. He says it feels like paying rent, but instead he is building ownership of his car.
Car on Installment from Banks in Pakistan
Almost every major bank in Pakistan offers car financing. Popular names include:
- HBL Car Loan
- https://www.hbl.com/personal/loans/hbl-car-loan
- UBL Car Financing
- Meezan Bank Car Ijarah (Islamic Financing)
- Bank Alfalah Car Loan
Steps for Getting a Car Loan from Bank:
- Choose the car you want.
- Car on Installment in Pakistan
- Provide salary slip or income proof.
- Pay 20–30% down payment.
- Bank pays the rest directly to the dealer.
- You drive your car and pay monthly installments to the bank.
💡 Pro Tip: If you want interest-free car financing, choose Meezan Bank Car Ijarah or other Islamic banking options.
Car on Installment in Karachi
Karachi’s busy lifestyle makes having a car almost necessary. Luckily, car installment options in Karachi are everywhere:
- Tariq Road showrooms – Suzuki & Mehran on easy installments.
- Defence & Clifton dealers – Honda & Toyota on flexible plans.
- Saddar & Gulshan banks – Car financing with simple paperwork.
Fun Fact: In Karachi, some dealers even allow used cars on installments with only CNIC.
Car on Installment in Lahore
(Car on Installment in Pakistan)
In Lahore, cars are a must for family trips and wide roads. Both banks and dealers offer car installment plans.
- Banks in Lahore: HBL, Meezan Bank, Bank Alfalah.
- Dealers on Ferozepur Road: New & used cars on easy installments.
👉 Example: My uncle in Lahore bought a Suzuki WagonR. He gave 4 lakh cash and paid the rest over 36 months. He said paying in small parts felt easier than saving the full price.
Used Cars on Installments in Pakistan
Not everyone buys a brand-new car. Many people prefer used cars on installment because:
- Cheaper price.
- Lighter monthly payments.
- Easy approval.
⚠️ Always check:
- Car’s condition.
- Original documents.
- Dealer’s reputation.
Honda Car on Installment
Honda Civic, Honda City, and BR-V are the most popular cars in Pakistan.
- Banks usually require 20–30% down payment.
- Dealers sometimes offer lower down payment but with limited options.
Driving a Honda Civic on installment makes you feel like a king—even if you’re still paying for it.
Cars on Installments Without Interest (Islamic Financing)
Many people ask: Can I buy a car on installments without interest?
✅ Yes, you can!
Islamic banks like Meezan Bank offer:
- Ijarah → Bank buys the car and rents it to you.
- Murabaha → Bank buys the car and sells it to you at a profit, with fixed monthly payments.
This way, you avoid interest (Riba) and still enjoy installment plans.
Mehran Car on Installment
If you want a budget-friendly car, Suzuki Mehran is still a top choice.
- Easy to repair.
- Spare parts available everywhere.
- Dealers offer installments starting from 20,000–25,000 per month.
Perfect for students, small families, or people with limited income.
Comparison: Bank Financing vs Dealer Installments
| Feature | Bank Financing | Dealer Installments |
|---|---|---|
| Down Payment | 20–30% | 10–20% |
| Interest Rate | Yes (except Islamic banks) | Sometimes interest-free |
| Paperwork | More (salary slip, ID) | Less (CNIC mostly) |
| Car Options | Mostly New Cars | New & Used Cars |
| Trust Level | High | Medium |
Things to Check Before Buying a Car on Installment
✔️ Your monthly income (don’t choose a plan you can’t afford).
✔️ Interest rate & hidden charges.
✔️ Compulsory insurance (some banks require it).
✔️ Dealer’s reputation & car condition.
Conclusion
Getting a car on installment in Pakistan is easier than ever. Whether you are in Karachi, Lahore, or Islamabad, banks and dealers both offer flexible installment plans.
👉 The smart choice is to compare options, check your budget, and then decide. Once you bring home your first car on installment, every drive will feel like an achievement. 🚗✨
FAQs – Car on Installments in Pakistan
Q1: Can I get a car on installment in Karachi with just CNIC?
Yes, some dealers offer used cars with only CNIC, but banks always require salary or income proof.
Q2: Which bank is best for car on installment in Lahore?
Meezan Bank is great for interest-free financing. HBL and Bank Alfalah are good for quick approvals.
Q3: Is Mehran car on installment still available in Pakistan?
Yes, many dealers still sell Mehran cars on installment because they are cheap and easy to maintain.
Pingback: Washing Machine Price in Pakistan — Buyer's Guide 2025