Year-end is considered one of the best times to buy your vehicle owing to the discounts and offers you get from the sellers as they need to clear their old stock. However, what type of vehicle you should choose might confuse you. These days many options are available with multiple features and designs for consumers to select their favourite vehicle.

If you need clarification about whether to buy an electric vehicle or a non-electric one, you must consider certain things. One of the most important things is the budget and the interest you will pay while taking a vehicle loan. It could be a car or motorbike, but you must choose your options wisely to avoid regretting your decisions later.

Electric vehicles are expensive to purchase. However, you can save a lot of money in the long term owing to multiple benefits such as low-maintenance costs, environment-friendly features, and no tension of spending more owing to rising fuel costs. These days the government of many states are offering tax benefits on the eco-friendly vehicle. You can buy an electric vehicle and take a tax rebate.

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Electric vehicles come with easy plug-and-play features. So, anyone with basic driving skills can use these vehicles. Also, electric cars come without gears, so it is effortless for you to handle these vehicles. Indian markets are witnessing many old and new companies launching electric vehicles. Some are still nascent, while others have already hit the road and gained popularity. If you will use your vehicle for 10-15 years or even more, it makes sense to take your buying decision seriously.

Apart from comfortability and features, other benefits you can enjoy while buying an electric vehicle are cheaper lending options. Many lenders offer lower interest rates on electric vehicles than on non-electric vehicles. It would be best to compare your total cost, including maintenance, repair and recharge before you decide. An electric vehicle will not burden your pocket if you save money on interest, tax and fuel, according to Bankbazaar.

On the other hand, non-electric vehicles are tried and tested in the Indian markets, and the chances of developing snags are scarce. These vehicles are less expensive than electric ones, but the overall cost is higher due to high maintenance and repair. You often pay high taxes while buying these vehicles, which vary depending on the type. Also, when you opt for a vehicle loan, there is no rebate from the lenders, and you may be charged higher interest if your credit score is poor.

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It is important to note that while buying a vehicle, you must first assess your budget and then compare the interest rates of different lenders. Once the budget is known, you can take a call. Next, you can check the cars, manufacturers, and features per your requirement. It will help you decide what suits your and your family’s needs and fits your pocket.

The table below helps you compare the interest rates on both electric and non-electric vehicles. You can decide based on your eligibility and requirements.

Interest Rates: Electric Vs Non-Electric Vehicle

Compiled by BankBazaar.com

Note: Interest rates on Car Loan for electric and non-electric vehicle for all listed (BSE) Public & Pvt Banks considered for data compilation (Excluding small finance banks); Banks for which data is not available on their website are not considered. Data collected from respective bank’s website as on 13 Dec 2022. Top banks with lowest interest rates on e-vehicle are listed in ascending order i.e. bank offering lowest interest rate on electric car loan is placed at top and highest at the bottom. Lowest interest rate offered by the banks irrespective of the loan amount is shown in the table.