First Car Suggestions+ budgeting advice

Looking for some solid advice from people who've been through it. We are planning to buy our first car and we need help figuring out what car makes the most sense for our situation (and whether our budgeting makes sense).

We’re a small family of three; my wife, our 2-month-old baby, and I. Both of us mostly work from home, so we don’t have a daily commute. The car would primarily be for city driving in Karachi, grocery runs, doctor visits, and occasional family outings.

💼 Financial Situation: I earn PKR 600K/month (after tax deduction)

My wife earns PKR 350K/month (after tax deduction),

That gives us a combined household income of ~950K/month

📉 Our Monthly Expenses: I give 160K to my parents

She gives 100k to her parents

Spend about ~70K on personal/household expenses

~50k utilities and stuff

~100k/month house rent

So ~480K/month in fixed costs right now

we are left with ~470k in savings at the end of the month

We currently have PKR 1.2 million in savings, along with PKR 1.3M in investments; but since those aren’t liquid, I’m setting them aside for now. From my savings, We plan to keep 200K as a safety net and can allocate 1 million PKR as a down payment for a car.

We're comfortable paying up to 150K per month in installments, though I’m not entirely sure if that’s the smartest move financially.

What we're struggling with is deciding between:

A brand new car like the Suzuki Swift (~PKR 5 million)

A cheaper, used option, or

A newer model JDM like Mira or Passo

I’m prioritizing reliability, fuel efficiency, and long-term value. Would love to hear your thoughts and recommendations based on experience. Thanks in advance!

What we Need Help With: Given our budget and goals, what car would you suggest?

what is the best islamic car financing?

How much should we go for in monthly installments?

Should we go for a shorter or longer loan tenure?

Any gotchas or hidden costs I should be aware of?

Ideally, w're aiming for a 2-year car financing tenure, with PKR 150K monthly installments and a PKR 1 million down payment, keeping the total car cost around 5 million.