When people compare cars on a loan, they usually compare the installment and stop there. That is how someone ends up with a car they can technically afford but cannot comfortably run.
In this guide we take three of the most popular cars in Pakistan, the Suzuki Alto, the Toyota Yaris and the Honda City, and work out three things for each: how much you need upfront, what the bank will take from you every month, and what the car really costs you each month once petrol, insurance and servicing are included.
All numbers come from our Car Loan Calculator, using the September 2026 rate sheet.
Why the Alto plays by different rules
State Bank of Pakistan rules treat small cars and bigger cars very differently, and this changes the whole picture.
For locally made cars up to 1000cc, like the Alto, the minimum down payment is 15 percent and you can spread the loan over up to five years. For cars above 1000cc, like the Yaris and City, the minimum down payment jumps to 30 percent and the maximum term drops to three years.
There is one more rule that catches a lot of buyers by surprise. No single person can borrow more than Rs 30 lakh for car finance in total, across all banks. On a Yaris or City, 70 percent of the price is more than Rs 30 lakh, so the bank simply cannot lend you that much. You have to cover the rest yourself, which pushes the real down payment well above 30 percent.
Down payment and monthly installment
Here we used the minimum down payment each car allows, with Meezan Bank’s Islamic rate of 14.65 percent and Bank of Punjab’s conventional rate of 14.10 percent.
| Car | Price | Down payment | Loan | Term | Monthly at 14.65% | Monthly at 14.10% |
|---|---|---|---|---|---|---|
| Suzuki Alto VXR | Rs 29.95 lakh | Rs 4.49 lakh (15%) | Rs 25.46 lakh | 5 years | Rs 60,094 | Rs 59,364 |
| Toyota Yaris 1.3 GLI MT | Rs 46.49 lakh | Rs 16.49 lakh (35.5%) | Rs 30 lakh | 3 years | Rs 103,483 | Rs 102,679 |
| Honda City 1.2L CVT | Rs 47.37 lakh | Rs 17.37 lakh (36.7%) | Rs 30 lakh | 3 years | Rs 103,483 | Rs 102,679 |
Notice that the Yaris and the City end up with exactly the same installment. That is because both hit the Rs 30 lakh limit. The only real difference between them on a loan is how much cash you need on day one, about Rs 88,000 more for the City.
The salary you need
Banks check your debt burden ratio, which is simply the share of your monthly income that goes to loan payments. For car loans, plan on keeping it at or below 40 percent. Some banks are stricter than that.
At 40 percent, the Alto installment of about Rs 60,000 needs a monthly income of roughly Rs 1.50 lakh. The Yaris or City at about Rs 1.03 lakh a month needs roughly Rs 2.59 lakh. If you already pay another loan or have credit cards, the bank will count those too, so the salary you need goes up.
What the car really costs you every month
The installment is only part of the story. Here we added three running costs to each car. For petrol we assumed 1,000 km a month at Rs 396.65 a litre, the price on 8 October 2026, with the Alto doing about 18 km per litre and the Yaris and City about 14. For insurance or takaful we used 2.5 percent of the car’s price in the first year. For servicing we used a typical yearly average.
| Monthly cost | Suzuki Alto VXR | Toyota Yaris 1.3 | Honda City 1.2 |
|---|---|---|---|
| Loan installment | Rs 60,094 | Rs 103,483 | Rs 103,483 |
| Petrol (1,000 km) | Rs 22,036 | Rs 28,332 | Rs 28,332 |
| Insurance or takaful | Rs 6,239 | Rs 9,685 | Rs 9,869 |
| Servicing | Rs 2,083 | Rs 4,167 | Rs 4,167 |
| Real monthly cost | about Rs 90,500 | about Rs 145,700 | about Rs 145,900 |
That last row is the number to plan your budget around, not the installment. An Alto on a loan really costs about Rs 90,000 a month to own and run. A Yaris or City costs about Rs 1.46 lakh.
The hidden cost of a five year loan
Because the Alto is allowed a five year term, its installment looks gentle, but you pay profit for longer. On the Meezan rate, the Alto loan costs about Rs 10.6 lakh in profit over five years. The Yaris and City loans cost about Rs 7.25 lakh each, simply because they are paid off in three.
If your budget allows it, the Alto on a three year term works out to about Rs 87,800 a month. That is a big jump in the installment, but it saves you a large amount of profit. The right choice depends on how much room your monthly budget really has.
So which one makes sense?
If your take home pay is under about Rs 2.5 lakh, the Alto is the realistic option on a loan, and the five year term keeps it manageable. If you earn more and can put down around Rs 16 to 17 lakh, the Yaris and City cost almost the same each month. At that point the decision comes down to which car you prefer to drive and how much cash you want to keep aside.
Whichever you pick, do not empty your savings for the down payment. Keep at least three months of the real monthly cost aside as a cushion.
Run your own numbers
Every car price, down payment and rate above can be changed in our Car Loan Calculator. It applies the SBP rules automatically and shows a full cost of ownership breakdown, including registration and withholding tax for your province.
If you are weighing an Islamic option against a conventional one, read our comparison of Ijarah and conventional car finance.
Car prices and bank rates were checked in September 2026 and the petrol price on 8 October 2026. All are indicative. Petrol prices change often, so adjust the running costs to today’s rate. Your bank’s written offer is always the final word.
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