Buying a new vehicle is often a dream for most of us. Although there are other factors involved such as the aesthetics, the utility, and the features, it is needless to say that the price of the car is a crucial factor in the car we ultimately select. It needs to fit into our budget, and we need to make sure that the loan and EMIs fall into our monetary bracket. As a buyer, it is also important to know that a vehicle’s ex-showroom price and on-road price can be different.
So, in this article, let us discuss the meaning of the two concepts so that you can make an informed choice when purchasing a vehicle –
What is the meaning of ex-showroom price?
If you talk to someone that already owns a vehicle, they will tell you that there is more to the price of the car than its monetary value. The process of buying a vehicle charges some expenses of its own. The ex-showroom price of a vehicle is essentially the cost of buying a bike after you remove some extra charges from the purchase. These charges are Registration fee at the Regional Transport Office (RTO), cost of insurance, and road tax.
The three charges mentioned above are important and are mandatory to pay if you want to drive your vehicle on the road. Missing any of these charges and not following the proper guidelines related to them can lead to major penalties. The ex-showroom price of a vehicle is inclusive of the ex-factory cost, GST, the profit margin of the vehicle dealer. Whenever you see ads for vehicles, they will most likely include the ex-showroom price. This is done to attract more customers.
What is the meaning of on-road price?
If you focus on the nomenclature of the term, you will know that an on-road price is something that you would have to pay for the vehicle to be on the road. The total amount of money you pay from the moment you enter the showroom to the time that the purchase is complete is known as the on-road price.
The on-road price includes the ex-showroom price of the vehicle and more. It will include the registration charges for your vehicle, road tax, four wheeler insurance, and any other charges that may apply. For example, if you include some extra features or accessories in the car at the time of purchase, the cost of them will be included in the on-road price of the car. Depending on the dealer you go to and the brand of vehicle you buy, you are not likely to find the on-road price of the car through any official sources. However, there are reliable sources that you can find online to get the right information. Ideally, you should know the on-road price of the car to make sure how much the purchase will cost you.
It is important to be aware of these differences when buying a car. This is because purchasing a car requires planning and is a decision that will last for many years to come. And since your car is precious, it is important to insure it well – you can research and opt for a third party car insurance online. To get a further idea about your car-related finances, it is good to calculate your premiums as well, so you can make use of a car insurance premium calculator to check for yourself.
Please note, insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read sales brochure/policy wording carefully before concluding a sale.
