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About this tool
Test a second vehicle against the 20/4/10 rule, your EMI-to-income ratio, emergency savings and parking.
This second car affordability checker tests a proposed vehicle purchase against six benchmarks at once: the 20/4/10 rule (at least 20% down, no more than a four-year loan, and all transport costs under 10% of gross income), your total EMI-to-income ratio against the 40% comfortable level and the roughly 50% lender cap, how many months of household expenses your emergency fund still covers after the down payment, and whether you own a parking slot for every vehicle. The EMI itself uses the standard reducing-balance formula.
Open Second Car Affordability Checker on AltFTool — it loads instantly in your browser.
Enter Gross monthly income (INR), Other loan EMIs — home, personal (INR), and the Existing vehicle EMI and running cost per month.
Add the Second vehicle on-road price, Down payment, Loan interest rate (% a year), Loan tenure (years), the new running cost, Liquid savings today, Monthly household expenses, Parking slots you own and Vehicles you will own after this.
The headline gives what the second vehicle costs a month as EMI plus running, and The six tests marks each benchmark pass, warn or fail with the figure and the fix; Copy result saves the verdict.
Down payment, tenure, transport share, EMI ratio, emergency fund and parking all tested together.
Fuel, insurance, servicing and parking for both vehicles go into the transport share.
Each check reports its own value, benchmark and what would fix it.
Put at least 20% down, keep the loan to four years or less, and keep all transport costs — every vehicle's EMI, fuel, insurance, servicing and parking — under 10% of gross income. It is a rule of thumb rather than a lending requirement, but it is the fastest way to spot a purchase that will squeeze the rest of your budget.
Indian lenders typically cap total EMI obligations at around 50% of gross income when assessing a loan, and most planners suggest staying under 40%. Above the lender cap the loan is likely to be declined regardless of how comfortable it feels.
Compare the second vehicle's full monthly cost — EMI plus fuel, insurance, servicing and parking — against what the same journeys cost by cab or ride-hailing. A second car earns its place when it is used most days; for occasional use, the fixed costs alone usually exceed the fare bill.
Aim to still hold six months of household expenses in liquid savings, and treat three months as the floor. A down payment that pushes the emergency fund below that turns any job gap or medical bill into new debt at a much higher interest rate than the car loan.
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