Should You Take a Car Loan?
Cars are depreciating assets, so financing one is a negative-return decision purely from a math standpoint. The right question is not 'can I afford the EMI' but 'can I afford to lose this amount over the life of the loan'. Aim for a down payment of at least 20%, keep the tenure under 5 years, and avoid loans on old/used cars where rates are much higher.
Frequently Asked Questions
What is the ideal down payment for a car?
At least 20% of the on-road price. Higher is better.
What is the maximum car loan tenure?
Banks typically allow up to 7 years for new cars and 5 years for used cars.