Dealers of used cars facing plunging sales.

ISLAMABAD -- Car dealers in Islamabad are feeling the pinch of falling sales amid surging prices of new cars and petroleum products.

Many dealers in the federal capital have not closed a single deal of used car sale during the running month.

According to the Pakistan Automotive Manufacturing Association (PAMA), Pak Suzuki Motor Company only sold 72 of the 273 Cultus cars (1000-CC) produced in February. Similarly, only 93 out of 599 pieces of WagonR produced in February were sold. The PAMA data also revealed that the sale of all other car manufacturers has plunged in the last two months

The dealers believe the high prices of new cars have increased the resale value of used cars, making them out of the reach of potential used-car customers.

The high-interest rates and the financing cap of Rs 3 million and above have also affected the overall demand for cars, the dealers of used and new cars added.

Muhammad Awais, a...