The On-Road Price of a vehicle is its actual price. It is calculated after adding six essential charges.

The prices of vehicles in advertisements are often lower than the accurate price. Why? It’s because showing the ex-showroom price is a strategy to entice potential buyers, just like seeing a set of shiny new keys can make you feel secure. Still, you must consider the total cost of services, including lost smart key replacement or repairs, to be covered.

However, when you see the total price of a vehicle, you will realize it's higher than the quoted price. To avoid this issue, you must know what to expect when you see the final bill. This article will help you understand exactly that.

What is the on-road price?

The price one pays to get a vehicle from the dealer is called the on road price. It encompasses the ex-showroom price, the RTO registration, the road tax, the insurance, and other such charges like logistics charges.

The logistic charges include:

• The cost of sending a vehicle from a warehouse to a showroom.
  
  
• It's a number plate charge.
  
  
• Other miscellaneous expenses.
  
  
• registration fees
  
  
• Road tax
  
  
• Insurance and other fees.

It’s like getting a new set of keys cut—there’s more involved than just picking up the key; the locksmith ensures it fits perfectly with your locks, much like how all these costs fit into your car's total price.

For instance, if you want your new car equipped with new dealer-installed equipment, the seller will add that amount to the final On-Road payment.

You can find an ex-showroom to On-Road price calculator online or request one from the auto dealer.

You might also want to ask for tips on when to change car tyres for better maintenance and long-term cost planning.

Recommended Read: Best Small Automatic Cars in India at Affordable Prices

What is the Ex-showroom Price?

The ex-showroom price of a vehicle is the cost excluding the registration charges for the car at the Regional Transport Office (RTO), insurance, and road tax. Think of this as buying a new key without considering the lock it fits.

An example of how on road cost of a car differs from showroom price:

These three constitute a crucial trio for riding or driving any vehicle on public roads in India. If not, you would be liable to pay stiff penalties. The showroom Price is the price at which your vehicles are usually advertised and includes:

• The Goods and Services Tax (GST).
  
  
• The ex-factory cost.
  
  
• The profit margin of the vehicle dealer.

Just like choosing a petrol vs. diesel car affects running costs, knowing what makes up your car’s store price will help you make a more informed decision.

Difference Between Ex-showroom Price and On-road Price

Here are the significant differences between the showroom price and the on road price:

Read: How to Choose the Right Swipe Card Entry Systems for Your Needs

Factors Influencing a Vehicle’s On-road Price

Here are some factors that influence a car's on road price:

1. Annual Maintenance Package

A dealer can provide you with a yearly servicing plan, including the following:

• Polishing
  
  
• Cleaning
  
  
• Servicing
  
  
• Roadside Assistance

Like opting for a locksmith’s key protection plan to ensure your keys are always in top shape, a dealer may offer yearly car servicing packages. However, learning how to replace a car key battery can save you from minor inconveniences.

So, what should you look for? If your insurance covers the yearly servicing, there's little use in accepting a dealer's plan if you can negotiate it better.

2. Necessary and Additional Accessories

Some essential accessories are floor mats and seat covers, whereas some extra accessories may be the biker's jacket or a trendy helmet. The on road cost of a car usually comprises the prices of all their extras.

Just as a key might need a protective cover or RFID chip for security, cars can come with essential and additional accessories.

3. Extended Warranty

You can add an extended warranty to any car, for which you must pay more.

An extended warranty for your car adds to the on-road price, just as opting for a long-term locksmith service plan ensures your keys remain in perfect condition.

So while selling it, it has more value because of the warranty. This extra warranty will be added along with the cost of a car on-road.

4. Green Cess

Green cess can differ from state to state and might even depend upon the ex-showroom price of a car.

Additionally, to improve your vehicle's efficiency, explore how to increase a car's mileage through maintenance tips and driving techniques.

5. Handling Charges

Dealers charge handling fees to move the car from the factory to the showroom, much like a locksmith may charge a fee to deliver and fit your new set of keys. Usually, it is a part of a dealer's margin, forming part of the showroom price.

Recommended Read: DIY Bike Key Modification: Step-by-Step Guide

6. Insurance

Without coming under the Motor Vehicles Act, you cannot drive your vehicle on India's roads without a demand to drive your car with insurance.

Usually, a dealer will tie up with an insurance provider, or you can get your own. This would, however, come under the on-road price of a car.

A tip to remember if we are talking about insurance: you can also secure smart car keys by getting a key protect in car insurance.

7. Registration Charges

Every vehicle needs to be registered with the nearest Regional Transport Office. The vehicle dealer will generally do this for you.

After that, you get an HSRP number plate without which you cannot drive around. So, this amount is also added to the on road price.

8. Road Tax

You will also need to pay road tax applicable anywhere between 3-20% of a car's showroom price. Don’t forget that car lockout prevention tips can save you even more money over that tax.

9. TCS

A dealer also collects 1% of the vehicle's store price as Tax Collected at Source (TCS).

Factors That Influence a Car’s Ex-showroom Price

Three elements determine the showroom price of a car.

• GST
  
  
• Ex-factory price
  
  
• Dealer Margins

What is the List of Most Popular Car On-road Price Calculators?

There are many ex-showroom to on-road price calculators for cars. Here are some of the popular ones:

• V3Cars
  
  
• MyCarHelpline
  
  
• CarDekho
  
  
• CarWale
  
  
• CarTrade

This is the list of top 5 car price calculators, according to Keyenzy.

Conclusion

In conclusion, we have determined the meaning of the On-road price of a car along with the ex-showroom price, the differences between the two, and factors affecting their costs.

That is all for the meaning and difference between the ex-showroom and on-road car prices!

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Frequently Asked Questions

Q. Can the on-road price of a car be different from one car showroom to another?

Ans: A car's on-road car price depends upon different factors, varying from service to service and product to product. Thus, according to the type and number of services and accessories, the on road price differs from showroom to showroom.

Q. Why are the on-road car prices usually not quoted in advertisements?

Ans: The core on road price includes registration charges, road tax, and insurance. These are compulsorily payable expenses, while the rest is negotiable. However, whether the customer will pay the compulsorily payable expenses through the dealer or will take up arranging and paying for them on their own is a choice. So, that cannot be put across in the advertising amount.

Q. How do I find an approximate on-road price of a car?

Ans: After knowing the showroom price, you can find several online calculators that will help you find the approximate on road price of a vehicle. Alternatively, you may even contact the dealer of that particular vehicle and request him to quote you the price of the car.