Planning to buy a car? Choose lowest repayment tenure when taking auto loan

For salaried, it's a depreciating asset with no tax benefit

• Car loans are usually of around seven years, but some lenders offer loans for up to 10 years
• A long-tenured loan means smaller equated monthly instalments (EMIs), which may make the car seem more affordable. But you end up paying more interest
• A car is a depreciating asset. Taking a bigger loan may not be the best thing to do unless you are a business owner who is buying the vehicle for office use
• While a salaried person doesn't get any tax benefit on a car loan, a business owner can deduct the interest