Whether EMI is to be calculated at total cost of vehicle even if we paid some down payment
or
whether it will be calculated on net amount after deducting down payment.
as the dealer is calculating EMI at total cost without deducting down payment.
EMI is to be calculated on price- down payment. Suppose price 18,000/- down payment 5000/- net amount 13,000/- suppose interest rate 15%, and term 12 months then EMI will be 1173 per month. Here you have paid 5000 immediate hence interest should not be paid on this 5000.
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