Buying a new car has become more accessible as United Bank Limited (UBL) has rolled out a UBL Drive financing plan for the Honda City, offering monthly installments starting from around Rs. 68,629 under its residual value option.
The financing plan covers all major Honda City variants and is designed to ease the financial burden on buyers by combining a lower upfront payment with reduced monthly installments. This is achieved through a 50% residual value structure, allowing customers to defer a portion of the vehicle’s cost to the end of the financing period.
Honda City Instalment Details Under UBL Drive
Under the residual-value option at a fixed rate of 14.5%, monthly installments are significantly lower compared to standard fixed-rate plans. For example, the Honda City 1.2L CVT can be financed with a monthly installment of Rs. 68,629, while other variants fall in a similar range of Rs. 69,000 to Rs. 70,000, depending on the model.
Customers opting for traditional fixed-rate financing will face higher monthly payments of around Rs. 102,000 to Rs. 103,000, highlighting the benefit of the residual-value structure for those focused on managing monthly expenses.
How the Residual Value Option Works
Under this plan, customers pay installments on 50% of the vehicle’s value during the financing period. The remaining amount is paid at the end of the tenure, refinanced, or settled through vehicle resale, depending on the customer’s preference.
UBL offers financing tenures ranging from one to three years, giving buyers flexibility in structuring their payments.
How to Apply for UBL Drive Financing
Interested buyers can apply online through the official UBL Drive platform. Applicants are generally required to submit:
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CNIC
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Income and employment details
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Bank statements
Once the application is submitted, a UBL representative contacts the customer to complete documentation, assess eligibility, and finalize the down payment, tenure, and installment plan.
According to UBL, the process involves minimal documentation and relatively quick processing, making it easier for customers to drive away in a new Honda City without long delays.
