Pakistan’s Used Car Market Hits New High

In a year marked by economic uncertainty and skyrocketing prices, one unexpected sector in Pakistan is thriving — the used car market. With inflation continuing to squeeze household budgets and new car prices pushing further out of reach for the average consumer, more Pakistanis are turning to second-hand vehicles as a practical and affordable solution. The result? Pakistan’s used car market has hit an all-time high in 2025, with record numbers of imports and local transactions reshaping the automotive landscape.

This surge isn’t just a temporary spike — it’s a structural shift. Data shows that more than 34,000 used vehicles were imported into Pakistan in the last fiscal year alone, reflecting a strong and growing demand. Buyers are seeking value, reliability, and fuel-efficient options, and they’re increasingly finding them in Japanese imports and well-maintained local listings. At the same time, platforms like PakWheels, OLX, and CarFirst are making it easier than ever to compare vehicles, secure financing, and access vehicle history reports — all from a smartphone.

But this growth isn’t without friction. The rise in used car imports has triggered alarm bells in the local automotive industry, with manufacturers like Pak Suzuki and Indus Motor voicing concerns over the impact on local assembly plants and employment. Government policies and shifting import duties also play a crucial role in determining the market’s future, with the federal budget and regulatory changes acting as both catalysts and constraints.

In this blog, we’ll explore what’s fueling this boom in Pakistan’s used car market, the opportunities it presents for buyers, and the challenges that lie ahead for industry players. Whether you’re a potential buyer, a car enthusiast, or just curious about the trends shaping Pakistan’s economy, this deep dive has something for you.

What’s Driving the Boom in Pakistan’s Used Car Market?

Economic Pressures and Affordability

One of the biggest factors pushing Pakistanis toward the used car market is the country’s economic situation. With inflation at record levels and the Pakistani rupee struggling against the dollar, brand-new cars have become a luxury that many can no longer afford. In 2025, even entry-level new vehicles cost upwards of Rs. 3 million, pricing out much of the middle class.

Used cars, on the other hand, offer a more budget-friendly alternative. For the same price as a new compact vehicle, buyers can often get a well-maintained, fuel-efficient sedan — sometimes even with higher-end features. Lower insurance costs, slower depreciation, and better resale value make used cars a smarter long-term investment for many families.

With salaries failing to keep up with the cost of living, more people are shifting their mindset: instead of aspiring to buy new, they’re learning how to get the best value from pre-owned options.

Surge in Japanese Imports and Market Demand

Japanese used cars have become the go-to choice for many Pakistani buyers — and for good reason. These vehicles are known for their durability, fuel efficiency, and high-quality maintenance standards. Models like the Toyota Corolla, Suzuki Alto, and Honda Vitz dominate the import lists, offering reliable transportation without the high cost of a brand-new unit.

According to import records, over 34,000 used cars were brought into Pakistan in the 2024–25 period, with Karachi and Lahore leading in demand. Japanese imports are particularly attractive due to their low mileage and advanced features — like hybrid engines, push-start systems, and safety enhancements — which are often unavailable in locally assembled vehicles at the same price point.

The rise in demand is also being driven by a growing preference for fuel-efficient and compact cars, especially among urban dwellers dealing with high petrol prices and tight parking spaces.

Policy Changes and the Government’s Role

Government policy has always played a significant role in shaping Pakistan’s car market — and used cars are no exception. In recent years, changes in import duties, tax exemptions, and regulatory leniency have made it easier (and sometimes cheaper) to bring in foreign vehicles.

The 2025–26 federal budget included measures that inadvertently boosted used car imports, including adjustments in import duty slabs and tax thresholds. Additionally, Special Regulatory Orders (SROs) — which regulate car imports — have seen temporary relaxations, making it possible for overseas Pakistanis and dealers to import more units.

However, this has sparked pushback from local car manufacturers, who argue that the influx of used imports is hurting domestic production and threatening jobs in the local auto industry

Opportunities and Challenges in the Used Car Space

Online Marketplaces and Buyer Empowerment

Digital platforms have completely transformed how people in Pakistan buy and sell used cars. Instead of relying solely on traditional showrooms or word-of-mouth referrals, buyers now have access to massive listings on websites like PakWheels, OLX, and CarFirst. These platforms allow users to compare prices, check vehicle history, calculate resale value, and even arrange financing — all from the comfort of home.

This level of transparency is empowering buyers, especially first-time car owners, to make informed decisions. For example, many listings now include verified mileage, accident reports, and photos from multiple angles, which help reduce uncertainty and avoid scams. Some platforms even offer certified pre-owned programs, ensuring vehicles meet certain quality benchmarks before sale.

Additionally, financing has become more accessible. Banks and fintech startups are offering used car loans with lower interest rates and simpler eligibility criteria. As a result, middle-income buyers who couldn’t afford new vehicles are now confidently entering the market through digital channels.

Quality, Transparency, and Buyer Risk

Despite the growth and accessibility, buying a used car in Pakistan still comes with risks. Many buyers face issues like tampered odometers, non-disclosed accidents, or fraudulent documents. While online platforms help reduce these risks, they can’t eliminate them entirely — especially when transactions occur outside certified networks.

One of the biggest challenges is the lack of standardized vehicle inspection services. In most cases, buyers rely on personal mechanics or word-of-mouth reviews, which can be unreliable. There's also a lack of awareness about checking auction sheets (for Japanese imports), verifying engine numbers, or cross-checking ownership records via Excise and Taxation departments.

To counter this, a few companies now offer pre-purchase inspection packages and legal document verification services. However, adoption is still low outside major cities like Karachi, Lahore, and Islamabad. Educating consumers on how to buy smart, safe, and secure is still a major opportunity in this space. To stay safe while buying a used, learn how to avoid used car fraud in Pakistan

Local Car Makers' Concerns and Market Competition

The influx of used cars — especially imported Japanese models — has not gone unnoticed by local automotive manufacturers. Companies like Pak Suzuki, Indus Motor Company, and Honda Atlas have publicly expressed concern that rising imports are undercutting their sales and disrupting the balance of the local market.

Their argument is simple: while imports benefit consumers in the short term, they hurt local production, reduce job opportunities, and discourage investment in local assembly and manufacturing plants. Some local players are lobbying for stricter regulations, higher import duties, or even import bans to protect the domestic industry.

On the other hand, many economists argue that competition from imports forces local brands to improve quality, reduce prices, and innovate — ultimately benefiting the consumer. The debate continues, and the government’s stance in the coming years will shape how both the new and used car markets evolve in Pakistan.

Top 5 Most Imported Used Car Models in Pakistan (2025)

Rank	Model	Country of Origin	Key Features	Avg. Price (PKR)
1	Toyota Aqua	Japan	Hybrid, fuel-efficient, push-start, rear camera	2.6M – 3.2M
2	Suzuki Alto (660cc)	Japan	Compact, great mileage, affordable parts	1.7M – 2.2M
3	Honda Vitz	Japan	Reliable, strong resale, CVT transmission	2.4M – 3.0M
4	Toyota Prius	Japan	Advanced hybrid tech, premium features	3.8M – 5.5M
5	Daihatsu Mira	Japan	Compact city car, low maintenance, ideal for women	1.6M – 2.0M

Conclusion

Pakistan’s used car market has clearly entered a new era — one driven by shifting consumer preferences, economic necessity, and digital innovation. As inflation continues to push new vehicles out of reach for many, second-hand cars have emerged not just as a backup option, but as the primary choice for thousands of Pakistani families and individuals.

With more than 34,000 used car imports in the past fiscal year alone, it’s evident that affordability, fuel efficiency, and quality are winning over buyers. Platforms like PakWheels, OLX, and CarFirst have helped simplify the process, providing better access to listings, inspection tools, and even financing — something that would’ve been unthinkable a decade ago.

However, this boom also brings serious challenges. The lack of standardized inspection procedures, rising incidents of fraud, and gaps in consumer education still make the used car space risky for many buyers. Meanwhile, local car manufacturers are struggling to maintain relevance, with growing concerns about job loss and reduced domestic investment.

Looking ahead, the future of Pakistan’s used car market depends on a few key factors: policy direction, consumer awareness, and technological innovation. If the government can strike a balance between protecting local industry and supporting consumer demand — and if platforms and fintech firms continue to innovate — the sector could remain strong for years to come.

For buyers, the best approach is to stay informed, do your research, and don’t rush into a deal. The market is evolving, and with the right knowledge, buying a used car in Pakistan can be not only affordable but also surprisingly rewarding.