Big News for Car Buyers as HBL Introduces New Auto Financing Offer

KARACHI: Habib Bank Limited (HBL) has introduced a new CarLoan Azadi Offer for customers looking to purchase a vehicle, offering car financing at a 14% fixed markup rate, 1.4% insurance, and a free vehicle tracker.

According to the bank, the special offer will remain available until September 30, 2026.

Under the latest HBL promotion, customers can obtain auto financing to purchase a vehicle of their choice. The key feature of the offer is the 14% fixed markup rate, which will remain unchanged throughout the approved financing tenure.

The fixed rate reduces the risk of unexpected increases in monthly financing costs resulting from changes in market rates. However, the actual monthly installment will depend on the financed amount, repayment period, vehicle price and other applicable charges.

1.4% Insurance

The offer also includes vehicle insurance at a rate of 1.4%, providing customers with a specified insurance rate alongside their auto financing.

Free Tracker

HBL’s Azadi Offer also provides a free vehicle tracker. The tracker is intended to provide customers with additional vehicle monitoring and security, while its installation cost will not be charged under the offer.

Example: Suzuki Alto VXR Five-Year Financing Plan

Based on an example using a 14% fixed rate, 30% down payment and a five-year (60-month) tenure, the estimated financing arrangement for a Suzuki Alto VXR is as follows:

Details Amount
Suzuki Alto VXR Price Rs2,994,861
30% Down Payment Rs898,458
Amount Financed by HBL Rs2,096,403
Financing Tenure 5 years / 60 months
Annual Markup Rate 14%
Estimated Monthly Installment Rs48,780
Total Installments Over 5 Years Rs2,926,777
Total Markup Over 5 Years Rs830,375
Total Cost Including Down Payment Rs3,825,235

The example indicates that the customer would pay an estimated Rs48,780 per month over 60 months, with the total financing payments amounting to approximately Rs2.93 million, excluding the initial down payment.

The total amount paid by the customer, including the Rs898,458 down payment, would be approximately Rs3.83 million over five years.