Purchasing a new car is a significant financial decision, and it’s important to carefully consider all of your options before making a purchase. One important factor to consider is the car down payment.

A car down payment is an initial payment made by a car buyer to the lender or the dealership while purchasing a new car. It is the amount that is paid upfront before the car loan is disbursed. The car down payment is calculated as a percentage of the car’s ex-showroom price, and the remaining amount is financed through a car loan.

What is the Down Payment on a Car Loan?

In India, the car down payment for a new car can vary depending on the lender’s policies and the type of car being purchased. Generally, the minimum down payment for a car ranges from 10-20% of the ex-showroom price. For example, if the ex-showroom price of a car is Rs. 5 lakhs, the car down payment could range from Rs. 50,000 to Rs. 1 lakh.

However, note that a higher down payment can have a positive impact on the car loan interest rate and the overall cost of the car. Lenders usually offer lower interest rates for higher down payments as it reduces their risk. However, EMI increases if you opt for a zero down payment car loan.

How is Car Down Payment Calculated?

To calculate the down payment that you’ll need to buy a new car in India, you’ll need to consider several factors. Here are the steps you can follow to calculate your down payment:

  1. Determine your budget: The first step in calculating your minimum down payment for a car is to determine how much you can afford to pay for a car. Consider your income, monthly expenses, and any outstanding debts you may have. Be sure to factor in additional costs, such as maintenance, insurance, and fuel expenses, when determining your budget.
  2. Choose a car: Once you’ve determined your budget, you can start looking at cars that are within your price range. Consider the type of car you’re interested in, as well as any additional features or options you might want. Keep in mind that some types of cars, such as luxury vehicles or sports cars, may require a larger down payment.
  3. Calculate your down payment: Once you’ve chosen a lender and secured a loan, you’ll be able to calculate your down payment. If you’re looking for a tool to help you calculate the down payment for a new car in India, you can try using Tata Capital’s car down payment calculator. This online calculator allows you to input various parameters, such as the type of car you’re interested in, your budget, and the terms of your loan, and it will provide you with an estimate of the minimum down payment for a car required. Using this calculator can be a helpful way to get a sense of how much you’ll need to pay upfront when buying a new car in India.
  4. Consider additional costs: In addition to the minimum down payment for a car, you may also need to pay taxes, fees, and other costs at the time of purchase. Be sure to factor these costs into your budget and add them to your car down payment calculation.


The down payment for a new car in India can vary from 10%-20% of the ex-showroom price. Some companies do offer zero down payment car loans. It is important to consider the down payment while purchasing a new car, as it can greatly affect the car loan interest rate and overall cost of the car. It is always recommended to save up and make a higher down payment to save on interest and overall costs.

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