Maruti Suzuki’s Ertiga is maintaining a strong hold in the Indian car market in the budget MPV segment. If you are planning to buy the base variant LXI of this 7-seater car, then understand here the complete calculation of how much EMI you will have to pay every month for the next 7 years after a down payment of ₹ 1 lakh.
Maruti Ertiga: How much will be the monthly installment on ₹1 lakh down payment? understand the complete mathematics
Ertiga LXI: On-road price breakup in Delhi
The ex-showroom price of the base model LXI of Maruti Ertiga has been fixed at ₹ 8.90 lakh. The cost of tax and insurance is added when buying it on-road in Delhi:
- Ex-showroom price: ₹8,90,000
- Registration/RTO Tax: ₹66,000 (approx)
- Car Insurance: ₹45,000 (approx)
- Total On-Road Price: ₹10,01,000
Mathematics of finance after ₹1 lakh down payment
Banks usually approve loans based on the ex-showroom price of the car. If the customer deposits the initial down payment of ₹1.00 lakh, the remaining amount of ₹9.01 lakh will have to be financed from the bank.
If the bank approves this loan for 7 years (84 months) at an annual interest rate of 9%, the financial position will be as follows:
- Total Loan Amount: ₹9,01,000
- Interest Rate: 9% p.a.
- Duration: 7 years (84 months)
- Monthly EMI: ₹14,656
How much additional interest will have to be paid in 7 years?
During the loan tenure of 7 years at 9% interest rate, the buyer will have to pay a total of ₹3.29 lakh as interest only, apart from the principal amount. In this way, the total cost of the car including ex-showroom price, on-road charges and bank interest reaches approximately ₹ 13.31 lakh.
Who is there to compete with in the market?
In the budget 7-seater segment, Maruti Ertiga competes directly with vehicles like Renault Triber, Kia Carens and Kia Carens Clavis.