Buying a car in India is not just about the ex-showroom price. For a middle-class family, especially if you are married and already paying a home loan, it’s important to know how much salary you actually need to afford a ₹10 lakh car comfortably.
🏦 1. On-Road Price of a ₹10 Lakh Car
A car priced at ₹10,00,000 (ex-showroom) will cost more once you add registration, insurance, and taxes.
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Ex-Showroom Price: ₹10,00,000
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RTO + Road Tax (~10%): ₹1,00,000
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Insurance (1st year): ₹40,000
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Handling & Accessories: ₹15,000
👉 On-Road Price ≈ ₹11.5 lakh
💳 2. Car Loan EMI for ₹10 Lakh Car
Most buyers take a car loan. Let’s assume:
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Loan Amount: ₹9 lakh (after ~20% down payment)
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Loan Tenure: 7 years
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Interest Rate: 9%
👉 Monthly EMI ≈ ₹14,500
🏠 3. Existing Home Loan EMI
If you already have a home loan, this is your biggest fixed expense. Example:
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Home Loan: ₹40 lakh
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Tenure: 20 years
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Interest Rate: 8.5%
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EMI ≈ ₹34,500
🛢️ 4. Running Cost of the Car
Apart from EMI, you need to consider monthly running costs:
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Petrol (1,000 km/month, mileage 15 km/l, petrol ₹100/l) ≈ ₹6,600
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Insurance (averaged monthly) ≈ ₹2,000
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Service/Maintenance ≈ ₹1,000
👉 Monthly Running Cost ≈ ₹9,500
📊 5. Total Monthly Outgo
| Expense | Monthly Cost (₹) |
|---|---|
| Home Loan EMI | 34,500 |
| Car Loan EMI | 14,500 |
| Car Running Costs | 9,500 |
| Total | 58,500 |
💡 6. Required Salary
Financial planners recommend that EMIs should not exceed 40–45% of your monthly salary.
If your household EMI + car costs are around ₹58,500 per month, then:
👉 You need at least ₹1.3–1.5 lakh monthly salary (CTC ~18–20 LPA) to comfortably buy and maintain a ₹10 lakh car if you are married and already have a home loan.
✅ Conclusion
If your salary is below ₹1.2 lakh per month, a ₹10 lakh car may put too much pressure on your budget. In that case, it’s better to:
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Consider a cheaper car (₹6–7 lakh segment)
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Or wait until your home loan EMI reduces
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Or buy a used car to reduce loan amount
A car should bring comfort and convenience, not financial stress. Plan your purchase wisely by balancing loans, fuel cost, and savings goals.
FAQ
Q1. What is the minimum salary to buy a ₹10 lakh car in India?
👉 Around ₹1.2–1.5 lakh per month if you already have a home loan.
Q2. Can I buy a ₹10 lakh car with a ₹70,000 salary?
👉 Not advisable with an active home loan, unless you have dual income or low living expenses.
Q3. Which is better: buying a new car or a used car when you already have a home loan?
👉 A used car reduces EMI pressure and running cost, making it a smarter choice.
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