Planning Your First Car Purchase This Diwali 2025? Check EMI Before You Buy

Diwali is often considered an auspicious time to make major purchases, and for many, it’s the perfect occasion to bring home their first car. Festive offers, discounts, and attractive finance schemes make it tempting to buy immediately. However, before taking the plunge, it’s crucial to calculate your EMI (Equated Monthly Instalment) using an EMI calculator to ensure your purchase aligns with your financial comfort.

Why EMI Planning Is Essential?

An EMI represents the fixed amount you’ll pay every month to repay your car loan. It consists of both principal and interest components. Understanding your EMI beforehand helps you manage your expenses better, maintain savings, and avoid future financial stress.

Scenario 1: The Budget-Conscious First-Time Buyer

Imagine a buyer planning to purchase an entry-level car worth ₹8 lakh during the festive season. After paying ₹1.5 lakh upfront, the remaining ₹6.5 lakh is financed through a loan at an interest rate of 9% per annum for 5 years.

When you run these details through an EMI calculator, the monthly instalment works out to around ₹13,500. Over the loan period, the total repayment amounts to ~₹8.1 lakh, including interest. This scenario suits first-time buyers looking for an affordable option with a manageable monthly commitment.

Scenario 2: The Comfort Seeker With Long-Term Planning

Consider another buyer opting for a mid-range car priced around ₹15 lakh, with a down payment of ₹3 lakh. The remaining ₹12 lakh is financed at an interest rate of 8.5% for 7 years.

Using an EMI calculator, the monthly EMI is roughly ₹19,000. While a longer tenure eases monthly pressure, the buyer ends up paying about ₹16 lakh in total, including interest. This approach is ideal for those preferring smaller EMIs spread across a longer duration.

Scenario 3: The Premium Buyer Focused on Faster Repayment

A third buyer looking for a higher-end model might take a ₹20 lakh loan for five years at 9% interest after paying a suitable down payment. According to the EMI calculator, the monthly EMI comes to about ₹41,500. Although the instalment amount is higher, this buyer benefits from a shorter repayment period and lower overall interest cost.

Also Read: Buying a ₹12 Lakh Car: Should You Loan Half or Pay Full Upfront?

Conclusion

Before finalising your car purchase this Diwali, take a few minutes to use an EMI calculator to estimate your monthly outflow. Adjusting loan amount, tenure, or interest rate can make a big difference to your repayment comfort. Thoughtful planning ensures you enjoy your new car and the festive season without compromising your financial stability.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.