2025: Car Buying Cheaper with RBI Rate Cuts & GST Reduction

• Car purchases became cheaper in 2025 due to reduced car loan EMIs and lower GST rates.
• RBI cut the repo rate by a total of 1.25% in 2025, leading to lower car loan interest rates from major banks.
• GST on small and entry-level cars was reduced from approximately 28% to 18% from September 22, 2025, lowering ex-showroom prices by up to ₹1.1 lakh.
• Lower interest rates can save borrowers thousands annually, with long-term savings potentially exceeding ₹50,000 on car loans.
• This period offers a favorable opportunity for new car buyers due to historically low interest rates and reduced tax burdens.

Why It Matters: Car loans and prices are down, making car ownership more affordable.