Car Loan vs Cash Purchase
Compare the true cost of buying a car on loan vs outright cash, including opportunity cost.
Quick Summary: Car Loan vs Cash Purchase
Choosing between a car loan and cash depends on opportunity cost. If you pay cash, you lose potential investment returns on that capital. If you take a loan, you pay interest. If your post-tax investment return (e.g., 12% in MFs) exceeds the loan interest (e.g., 9%), taking a loan is mathematically superior.
How to use the Car Loan vs Cash Purchase
- 1
Enter Car Price
Input the final on-road price of the vehicle.
- 2
Input Investment Return
Enter the expected annual return you could earn if you invested the cash instead.
- 3
Review Wealth Impact
The tool compares the total outgo and the 'lost compounding' of the cash option.
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Regulatory Disclaimer
Last verified May 2026
Nature:Calculator platform and is NOT a SEBI-registered Investment Adviser. All calculations are indicative.
Risk:"Investments in securities market are subject to market risks. Read all related documents carefully before investing."
Consult a SEBI-registered IA or CA for personalised advice.
9 out of 10 traders in F&O incurred net losses (SEBI 2023). Tax estimates based on IT Act 2025. Trezoriq is not liable for financial decisions based on results.