In this scheme the financier finances upto 90% of the cars showroom cost (depending upon the car model). The Insurance and RTO registration charges are not usually financed.

Thus initially you have to pay the margin amount (either to the financier or directly to the dealer) and post dated cheques as per the tenure choosen (e.g. if you choose a three year tenure - you have to issue 36 post dated cheques).

The first EMI is payable at the end of the month (in arrears).