Going for Mahindra Thar Roxx MX1 Diesel MT 2WD? Here's how 20% extra down payment can cut your EMI by nearly Rs 6,000; see estimates
Mahindra Thar Roxx MX1 Diesel MT 2WD is the new buzz in the town. A number of auto enthusiasts want to take a drive of Mahindra Thar's brand new model. Do you want to own it? Do you want to purchase it by taking a loan? Car loans are for up to 7 years, but the majority opt for 5 years. In 5 years, you pay interest along with your principal. You can finance 100 per cent of the car amount. But there is a catch! You get the loan on the ex-showroom price and not on the on-road price. The difference between the on-road price and the ex-showroom price is the down payment that you need to pay mandatorily to the car showroom at the time of purchasing the car. As far as the on-road price is concerned, you can get that amount financed 100 per cent, or you can make extra down payment and take the loan for the rest. The extra down payment has its own perk. It can reduce your car loan repayment substantially. But what if your choice is Mahindra Thar Roxx MX1 Diesel MT 2WD, and instead of going for a 100 per cent finance of the car, you pay 20 per cent extra down payment of the car's on-road price? How much difference will it make to your EMI? How will this calculation work? Get details of that in this article.
Photos: Unsplash/Pixabay
Mahindra Thar Roxx MX1 Diesel MT 2WD loan conditions
The on-road price of the car is Rs 17,08,329, while the ex-showroom price of the car is Rs 13,99,000. So, the maximum loan amount that can be available for it is Rs 13,99,000, which we will use in our projections. We are taking the car loan interest rate as 10 per cent, and the loan duration as 5 years. We are not showing here the processing fee as it can vary from loan to loan.
What will be down payment for Mahindra Thar Roxx MX1 Diesel MT 2WD?
The minimum estimated down payment that you need to make is Rs 3,09,329 (ex showroom price-on-road price).
What will be EMI for Mahindra Thar Roxx MX1 Diesel MT 2WD?
At 10 per cent interest, the estimated EMI for a Rs 13,99,000, 5-year loan will be Rs 29,725.
What will be interest component for Mahindra Thar Roxx MX1 Diesel MT 2WD?
The estimated interest that you will pay in 5 years will be Rs 3,84,476 (21.6 per cent of the loan amount of Rs 13,99,000). So, the estimated repayment amount will be Rs 17,83,476.
How much extra down payment you will make for Mahindra Thar Roxx MX1 Diesel MT 2WD
Your actual down payment was Rs 3,09,329. In it, you are adding 20 per cent of the ex-showroom price. It means your estimated down payment will be Rs 5,89,129.
How much money you will save on Mahindra Thar Roxx MX1 Diesel MT 2WD loan
With Rs 5,89,129 as the down payment, your loan amount will reduce to Rs 11,19,200. The estimated EMI you will pay on this loan for 5 years will be Rs 23,780. The estimated interest component will be Rs 3,07,581 (21.6%) and the total estimated repayment will be Rs 14,26,781.
It means that by making 20 extra down payment of Mahindra Thar Roxx MX1 Diesel MT 2WD's on-road price, your EMI will be reduced by Rs 5,945.
What will be interest component for Mahindra Thar Roxx MX1 Diesel MT 2WD?
In the new loan, the estimated interest component will be Rs 3,07,581, and the total estimated payment over 5 years will be Rs 14,26,781.Interest Component Rs 3,07,581(21.6%)
Principal Component Rs 11,19,200(78.4%)
Total Payable over 5.0 Years Rs 14,26,781
Disclaimer
(These calculations are projections and are for knowledge purpose only. Actual car prices and loan conditions may vary.)