The Nuisance of Own Money in Automobile Purchases

Mohammad Shaaf Najib, Usman Qadir


The constant gap in demand and supply of vehicles in Pakistan
gave birth to a phenomenon unique even today to the Pakistani automobile
market known as the ‘own money’ for brand new vehicles. For immediate
possession of an automobile that has been purchased, the buyer must pay
a premium charge: own money. The question is, what is this own money,
and why must one pay this to possess something one has already paid for?
In the early 2000s, when car sales in Pakistan rose sharply, aided by
the banks’ introduction of car financing services, the demand and supply
gap widened. The number of buyers increased rapidly, while vehicle
production capacities did not significantly increase to match this rise
in demand, resulting in an increased waiting period for the delivery
after booking the vehicle. An opportunity to earn commission was created
for those in the middle of the supply chain, i.e., the

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