Car Booking Rules in Pakistan | 20% Advance, Price & Registration

New car booking rules in Pakistan could change soon. The draft Auto Policy has three buyer-focused ideas: a limit on the advance you pay, a fixed price from booking day, and registration in the real buyer’s name before delivery. Buyers have faced rising prices and long waits for years, so these steps matter. All of them are still proposals, and none is law yet.

Key Car Booking Rules in Pakistan Under the Draft Policy

The 20% Advance Cap

Under the 20% car booking advance rule, a company could ask for no more than one fifth of the retail price as the first payment. The limit applies only to the opening advance. The rest is still paid on the terms you and the dealer agree on, so the cap does not reduce what the car costs. Today many buyers hand over a large share of the price months before delivery. That money works like a free loan to the manufacturer. When the advance is smaller, the company has less cash to play with and less reason to take more orders than its plant can build. Long queues, and the extra “on-money” that grows on them, usually start there. For a buyer, a smaller advance also means less money stuck if the wait drags on or your plans change. Still, a cap alone cannot promise fast delivery. It only makes waiting cheaper for you and over-booking harder for sellers.

Price Lock at Booking Date

The Pakistan Auto Policy 2026-31 that buyers are hoping for is simple. Once you book and pay the advance, the retail price on that day should stay the same. If the company raises its price later, you would not be asked to pay the difference. One exception has been reported: a sudden rise in government taxes could still be passed on. The exact wording of that exception has not been published, and it will decide how strong the protection really is. A wide exception can weaken the whole idea, while a narrow one keeps it useful. This is why the final text matters more than the headlines. In the past, many buyers saw prices go up between booking and delivery, and they had to accept the new rate or lose their advance. A written price lock would end that argument, but only if companies are legally bound to follow it. Until then, ask for the price terms on paper.

Draft Booking Proposals at a Glance

Rule Details
Advance Payment Cap The initial booking payment is capped at 20% of the car's retail price.
Price Lock The price applicable on the booking date will apply, with a possible exception for government tax increases.
Vehicle Registration The car must be registered in the actual buyer's name before leaving the showroom.
Buyer Information Buyers should receive clear details about the vehicle, warranty, after-sales services, and complaint filing process.
Delivery Timeline The draft does not confirm a universal delivery deadline or fixed compensation for late delivery. Reports differ, so the final policy should be checked.

Maximum Advance Payment for Different Car Prices

Car Retail Price Maximum Advance (20%) Remaining Amount (80%)
Rs 25 lakh Rs 5 lakh Rs 20 lakh
Rs 40 lakh Rs 8 lakh Rs 32 lakh
Rs 50 lakh Rs 10 lakh Rs 40 lakh
Rs 1 crore Rs 20 lakh Rs 80 lakh

(Rupee figures are simple calculations on the proposed cap, not official numbers.)

New Car Booking Policy in Pakistan: Registration and Next Steps

Buyer-Name Registration and On-Money

The third idea in the new car booking policy Pakistan buyers are reading about goes straight at on-money. At present, a car waiting at a dealer can stay unregistered, so a booking can be sold to someone else without any record. If the car must be registered in the real buyer’s name before leaving the showroom, any later sale becomes a proper ownership transfer with forms and fees. That will not end reselling, but it removes the quiet, free flips that push premiums up. It also raises fair questions. If the car is registered to you before delivery, who pays the registration cost, and what happens if delivery is late or you cancel? The draft does not answer these yet. These rules also put legal duties on companies, so they need legislation, not just a notification. The Prime Minister has approved the draft, but cabinet and Parliament steps are still pending. Until final approval, nobody has new legal rights.

What to Ask Your Dealer Today

  • Is the quoted price fixed, and what can change it?
  • What is the written delivery estimate?
  • How much of my advance is returned if I cancel?
  • Whose name will the car be registered in, and who pays for it?

FAQs

Are these booking rules final?

No. The draft has been approved by the Prime Minister, but cabinet and Parliament still have to clear it.

How much advance can a company take?

Up to 20% of the retail price as the first payment. On a Rs 50 lakh car, that is Rs 10 lakh.

Will my price stay the same after booking?

That is the idea. The booking-day price would hold, but a tax-increase exception has been reported, so the final wording matters.

Will this stop on-money?

Not fully. It adds paperwork, fees and a record to resale, which should discourage it, but demand still runs ahead of supply.

Is delivery time guaranteed?

Not by anything confirmed so far. Reports differ on delivery dates and penalties, so get a written estimate from your dealer.

Do I get a refund if I cancel?

The draft does not clearly create a refund right. Your dealer’s written terms still decide that.

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