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True Cost of Ownership
The real lifetime cost of a car — not just the sticker price or the EMI.
How this is calculated
Total cost = down payment + every EMI actually paid during your ownership period + insurance/maintenance/fuel over that period, minus what you get back at resale. EMI uses the standard reducing-balance formula; if your ownership period runs longer than the loan tenure, the loan is treated as fully paid off for the remaining months.
Tax treatment
A personal-use car generally carries no income-tax deduction in India — no depreciation, no interest deduction, unlike a home loan. If the vehicle is genuinely used for business, a portion of running costs and depreciation may be deductible; check with a CA, since the rules depend heavily on actual usage split and documentation.
Common questions about True Cost of Ownership