Should you invest in property — or cars?

Amjad Lodhi, who owns a car rental company, bought a Toyota Corolla in 2019 for around Rs2.5 million. Having paid off the amount in three-year instalments, he recently sold it for Rs3m, a cool Rs500,000 more than the original price. But he doesn’t seem satisfied. Reason: the sticker price has now crossed Rs5m. This is partly why people want to sell their old vehicles at higher prices. They want the difference to be as small as possible when they buy a new one. “If a new car adds Rs500,000 to its price, consumers demand an extra Rs200,000-250,000 for their old vehicles,” Mr Lodhi said. Abdul Nasir, who drives for a ride-hailing service, faces a similar situation. He has an offer of Rs630,000 for his Suzuki Cultus 2006 model, a car he bought for Rs550,000 less than a year ago. “It’s a great offer, but I must have the extra money in my pocket to get an advanced model,” he said. So, a record rise in vehicle prices is a kind of double-edged sword for most people who want to upgrade. Still, car prices have skidded out of control so fast that some people have even started treating them like real estate, though property stakeholders say sectors like auto and currency are volatile and may not be the best option in the long term.