Difference between ex-showroom price and On-Road Price

Are you in the planning of buying a new vehicle; could be a car, motorcycle, truck? But do you know about the different costs associated while purchasing a vehicle? Might be you must have heard about the ex-showroom or On-Road price, and this is the significant confusion people face.

You must have seen various advertisements quoting the price of Rs. 12 lakh, but when you visit their showroom, you find that they are showing a new price to pay for buying the vehicle.   

To make you aware and understand the various costs incurred for buying a vehicle, we have explained every price in this article.

Ex-Showroom Price

Ex-showroom price is the cost of manufacturing the vehicle, including the Goods and Service Tax (GST). In simple words, it is the cost that is charged by the dealer from the manufacturer and the tax that it pays to the government on the purchase. This may include the dealer’s profit as well.

Ex-showroom price = Cost of manufacturing vehicle + GST

The below charges are into included in the ex-showroom price:

Registration charges: Every car has a unique registration number. The district-level Regional Transport Office (RTO) of respective states allocated this number after paying the registration charges. The amount differs from state to state and its starting two letters like DL, HR represents the state code. The rest four digits are the unique registration number.

Road tax: Before running your vehicle on the road, you have to pay the road tax. It is a one-time payment that varies between 3% to 20%. 

Insurance: The insurance protects your vehicle from road accidents or theft. Various types of insurance policies is available in the market.

Tax Collection at Source (TCS): If you are buying your vehicle from the dealer, then TCS is charged at the rate of 1% of the ex-showroom price. The dealer deposits the TCS to the government.

Note: All the above charges are calculated on the ex-showroom price of the car only.

On-Road Price:

On-Road price is the final price after including all the above extra charges in the ex-showroom price. Whether the costs are optional or mandatory, they are required to add to know the On-road price. 

Apart from these charges, additional charges like logistics charges, extended warranty, annual maintenance charges, other accessories, etc., if any are also included on On-Road Price.

On-Road Price: Ex-showroom price + additional charges (registration charges, road tax, insurance, etc.)

Difference between ex-showroom price and On-Road Price

Final Words:

Understanding the Ex-showroom and On-Road price is not a complicated thing because the ex-showroom cost is itself a part of the total on-road price of your vehicle.

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