Total Cost of Buying a Used Car on Loan
Down payment, EMIs, interest, fees and insurance added up — plus running costs.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
The sticker price is only part of the cost. Add interest, processing fee with GST, insurance for each year, RC transfer and hypothecation fees, and early repairs to know what the car really costs.
Worked example
| Item | Amount |
|---|---|
| Car price (agreed) | ₹6,00,000 |
| Down payment (25%) | ₹1,50,000 |
| Loan | ₹4,50,000 at 12.00% for 4 years |
| EMI | ₹11,850 |
| Total interest | ₹1,18,811 |
| Processing fee (1% + GST) | ₹5,310 |
| Insurance (≈₹15,000 a year × 4, falls as IDV drops) | ₹60,000 |
| Total paid over 4 years (excl. running costs) | ₹7,84,121 |
Also budget for: RC transfer and hypothecation fees (set by each state — shown on Parivahan when you apply), any pending challans, an independent inspection, immediate servicing, tyres, battery and brake pads on older cars, fuel, parking and FASTag.
Illustrative figures; insurance premium depends on model, city, IDV and add-ons.
Rate effect
| Rate | EMI | Total interest | Extra vs lowest rate |
|---|---|---|---|
| 10.00% | ₹12,681 | ₹1,08,702 | ₹0 |
| 11.00% | ₹12,923 | ₹1,20,293 | ₹11,591 |
| 12.00% | ₹13,167 | ₹1,32,012 | ₹23,310 |
| 13.00% | ₹13,414 | ₹1,43,860 | ₹35,158 |
| 15.00% | ₹13,915 | ₹1,67,938 | ₹59,236 |
₹5,00,000 for 4 years.
Total cost calculator
Frequently asked questions
What is the biggest hidden cost?
Often immediate repairs — tyres, battery, clutch or suspension on an older car. Inspect before buying and budget a buffer.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.