20 Lakh Auto Loan Calculator

True Cost of a Car

When buying a car, the sticker price isn't the final number. Trade-in values and down payments lower your principal, but sales tax and interest inflate it. This specific calculator handles all those variables distinctively compared to a standard home loan.

Why are auto loan terms getting longer?

Dealerships often push 72-month or 84-month loans to make the monthly payment look smaller to the buyer. However, cars are depreciating assets. A longer term means you will be "underwater" (owing more than the car is worth) for a significant portion of the loan, while paying thousands more in interest.

Frequently Asked Questions

Should I choose a 60 or 72-month loan term?

While a 72-month auto loan reduces your monthly payment, you will pay significantly more in total interest. Shorter loan terms generally offer lower interest rates and prevent you from owing more than the car is worth.

How does tax impact my car purchase?

Depending on your location, sales tax is applied to the final purchase price of the vehicle. However, in many jurisdictions, if you trade in a vehicle, the tax is only calculated on the difference between the new car price and the trade-in value.