How to Calculate Car Installments: Understanding Down Payment, Tenor, and Total Down Payment (TDP)

Buying a car on credit makes monthly payments lighter. To avoid surprises with the total upfront cost, get to know the components first.

1. Down Payment (DP)

The down payment is a percentage of the OTR price paid upfront. Each leasing company sets a different minimum, usually starting at 15–30%. The larger the down payment, the smaller the loan principal and monthly installment.

2. Loan Principal and Interest

Loan principal = OTR price − down payment. Car loan interest is usually calculated as a flat annual rate: loan principal × interest rate × tenor (years).

3. Monthly Installment

Installment = (Loan principal + Total interest) ÷ number of months in the tenor. A longer tenor makes installments lighter, but the total interest paid is higher.

4. Total Down Payment (TDP)

What you pay at signing is more than just the down payment. TDP usually consists of:

• Down payment
• Leasing administration fee
• Insurance premium
• The first installment, if you use the ADDM scheme (installment paid in advance). Under the ADDB scheme, the first installment is paid the following month.

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Our dealer team is ready to help you work out the most suitable financing package, including leasing options, down payment, and tenor. Check the Price List, then contact your nearest Chery MAS Group dealer for the latest offers.

The calculation above is for illustration only. Final figures follow the leasing company's approval.