Before buying a commercial (T-permit) car, it helps to know exactly how its ongoing costs compare with a private car. The headline differences are tax, permit, insurance and fitness — but the picture only makes sense once you weigh them against earning potential. Here is the full comparison for 2026.
Road Tax
- Private car: usually a one-time tax at purchase
- Commercial car: recurring tax at a higher commercial rate, varies by state and seating
Permit Costs
- Private car: no permit needed
- Commercial car: permit fee of ₹5,000–₹15,000 depending on city, state or All India type
Insurance
- Private insurance is cheaper and covers personal use only
- Commercial insurance has higher premiums but covers passenger-carrying use
- A passenger-for-hire claim on private insurance will be rejected
Fitness and Compliance
- Private car: fitness only needed after 15 years
- Commercial car: periodic fitness certification throughout its life
- Commercial cars also face stricter age limits in some cities
Fuel and Maintenance
Commercial cars run far more kilometres, so absolute fuel and service spend is much higher — but the cost per km is what matters. CNG commercial cars run at roughly ₹3–5 per km on fuel, while diesel MPVs run higher. Maintenance adds ₹2–4 per km on larger vehicles like the Innova Crysta.
The Bottom Line: Cost vs Earning
Yes, a commercial car costs more in tax, permit, insurance and fitness. But it is the only legal way to earn from a vehicle — and a well-chosen T-permit car can earn ₹40,000–₹1,20,000+ a month, far outweighing the extra ownership costs. A private car saves you money only if you never intend to earn from it.