Satyan-Before thinking of that, first understand whether the car is NEED or WANT. If it is very much a necessity, then go ahead. For many of us it is just a weekend necessity. For that why to invest? Why can’t use the Ola or Uber kind of services? Second thing to go for a loan or not. I feel any loan is bad. However, if you have cash, then going for loan and investment your cash somewhere where the return will be more than your car loan interest. But in a short periods of such car loan tenure (approximately around 5 years), it is hard to get more return than car loan (considering the current interest trend and equity market). Hence, suggest you to use your own money and avoid car loan.