Two people can buy the same car for the same price and one pays lakhs more — purely from tenure, down payment and rate. Here's how EMI works and how much car you can actually afford.
How tenure changes the true cost
Longer tenure feels cheaper monthly but costs far more overall. Same ₹8,00,000 loan at 9.5%:
| Tenure | EMI | Total interest |
|---|---|---|
| 5 years | ~₹16,800/mo | ~₹2.1 lakh |
| 7 years | ~₹13,100/mo | ~₹3.0 lakh |
Lower EMI, ~₹90,000 more interest. Pick the shortest tenure you can comfortably service.
On-road vs ex-showroom
The advertised price is usually ex-showroom. You actually pay the on-road price — add RTO/registration, road tax, insurance and handling. On-road runs 10–15% higher. Base your budget on on-road. See the breakdown →
What decides your interest rate
- Credit score — above ~750 gets the best rates; a weak score adds 2–4%. Fix your CIBIL →
- Down payment — more down, lower risk and often lower rate.
- Existing EMIs vs income — lenders check total obligations.
FAQ
Safe EMI for my income? Within 10% (at most 15%) of take-home.
Longer tenure a good idea? Only if cash flow demands — it raises total interest.
An EMI you can afford plus fuel you can't isn't affordable — estimate running cost with the Fuel & Trip Cost Calculator, and weigh loan vs cash. Rates vary — confirm before signing.
