Car Loan vs SIP: One Wins by ₹3 Lakhs

You want a ₹10 Lakh car. Should you take a loan or save via SIP and buy later?

Option A: Car Loan

• Loan: ₹8L at 9% for 5 years → EMI ₹16,600/month
• Total paid: ₹9.96 Lakh (interest: ₹1.96L)
• Plus down payment: ₹2 Lakh
• Total cost: ₹11.96 Lakh

Option B: SIP for 3 Years

• SIP: ₹25,000/month at 12% for 3 years → ₹10.8 Lakh
• Buy car outright, negotiate cash discount (₹30-50K)
• Total cost: ₹9 Lakh + you earned ₹80K in returns

The Catch

Option B requires patience — 3 years without the car. But you save ₹3 Lakh and avoid debt. The math is clear; the choice depends on your situation.

This is a draft article. Interactive loan-vs-SIP calculator coming soon.