It is much more than just a one-time purchase in 2019 for a car in Pakistan; it is a long-term commitment and decision that is influenced by a number of factors. From the price tag to recurring costs such as fuel, insurance, and maintenance, the cost of ownership is an important consideration for new car buyers. In this article, we are going to look at the actual cost of keeping a car in Pakistan so you can make an informed decision in this respect.
Purchase Price
Car prices in Pakistan surged in 2025 as a depreciated currency and taxes pushed prices up for car owners. For instance Suzuki Alto VX used to be considered an affordable option, but now its price begins from PKR 2.144 million. The middle-tier cars , including Toyota Yaris and Honda City, ranged between PKR 4.8 million and PKR 5.3 million. Top-of-the-line vehicles, such as the Toyota Fortuner or imported, can cross PKR 10 million.
Depreciation
Depreciation is an unspoken yet massive detriment to the value of a vehicle. On average, a new vehicle will be worth like 20-30% less than you paid for it 1 year into the contract, and half of the value 5 years later. It means the car, worth PKR 5 Million after five years, might have depreciated to as low as PKR 2.5 Million, depending on the condition it is in and how much the market still needs it.
Fuel Costs
Fuel cost. This is one of the largest costs of owning a car. If one were to have an estimated average fuel consumption of 14 km/l and drives 15,000 km every year, the vehicle would eat up a total of approximately 1,071 liters of fuel. Covering 20,000km a year at Rs300 and pricing a liter, the annual cost of petrol should be about Rs321,300. But the mileage you will get out of your tank can change depending on your driving style, the cost of fuel, and how efficient your vehicle is.
Insurance
Car insurance is compulsory in Pakistan, and rates depend on the kind of car you have as well as your driving history. The average annual insurance premium is between PKR 50,000 to PKR 150,000. Though costlier comprehensive coverage is best if you want to stay protected against events outside of your control, such as accidents, theft, or natural disasters.
Maintenance and Repairs
There is a health care and fitness analogy here. Prove to me that I need preventive maintenance. Regular maintenance is the best way to keep a car running longer and stronger. Regular maintenance such as oil change, brake checkup, and tyre rotation may run you up to PKR 15,000 to PKR 30,000 in a year. Also, one should factor in any unforeseen repairs or the need to replace some parts altogether. For example, to change a tray of tyre would cost approximately 50k PKR.
Registration and Taxes
There are several charges that are levied for the vehicle registration in Pakistan, such as the registration charges, token taxes, and the number plate fees. These costs may be between PKR 10,000 to PKR 50,000 based on the engine capacity of the auto and the province of registration. And there is an annual token tax as well, the rate depends on engine capacity, type of vehicle, etc.
Financing and Interest
For those who go for a car loan, the interest rates contribute the most to the cost. With current interest rates hovering around 15%, interest costs for a five-year loan for a PKR 3 million car would also exceed PKR 1million. You’ll want to include these costs when looking at financing options.
Parking and Other Charges
Parking is a problem in the urban areas of Pakistan, particularly in big cities such as Lahore and Karachi. Parking rates in commercial areas can vary from PKR 2,000 to PKR 5,000 a month. In addition, the costs for car washes, accessories, and occasional fines can ski along as well.
Conclusion
If you own a car in Pakistan in 2025, you will have to deal with a complex host of expenses and challenges beyond the initial purchase price. When one considers depreciation, fuel, insurance, and maintenance , as well as other incidentals, the yearly price tag can add up. Prospective car owners should conduct thorough research and budgeting to ensure they are financially prepared for the responsibilities of car ownership.
