How car finance is worked out
The amount financed is the vehicle price less your down payment and any trade-in. If you choose to finance the sales tax and registration fees, they are added to the loan; otherwise you pay them up front with the down payment.
In Pakistan, State Bank rules limit the term of car financing and set a minimum down payment, and banks add insurance or takaful for every year of the loan. These limits change from time to time, so check your bank’s current terms before you apply.
Total cost = everything paid up front + all monthly payments. The difference from the sticker price is the true cost of borrowing.