Price is the most important factor, especially while purchasing a costly product like vehicle. Every person has a dream car or bike, but everyone cannot afford to have one in their life. Most people choose his or her vehicle based on their budget. First, they fix their budget and then look for possible options available within that price range. If you are planning to purchase a new car, new bike or new scooter for the first time, then you must know that there are two types of pricing of the vehicle and you have to pay the on-road price. Do not get confused with the price shown at the website or at the showroom, as there will be many additional costs over and above that displayed price. So, let’s see what all questions you must ask and get the answers before taking any decision.
- What is on-road price?
- What is included in on-road price?
- What is difference between on-road price and ex showroom price?
- How to calculate on-road price of car, bike or scooter?
- What factors influence the increase of on-road price?
Let’s find the answer one by one:
What is on-road price?
The final amount of money that you need to pay to the seller including all the charges is the on-road price. The invoice bill or the total price that is levied on the vehicle before it comes out of the showroom and hits the road is called as ‘on-road price’.
However, it differs from country to another, one state to another or even one city to another. The fact that cost percentages of tax charges, RTO fees, configuration, add-ons, discounts, & many other elements get changed once you cross the boundary of each city. That is the prime reason why on-road price gets altered.
What is included in on-road price?
The compulsory factors that are included in on-road price are:
- RTO fees
- Road tax
- Tax Collection at Source (TCS) charges (levied on cars with ex showroom price above Rs 10 lakhs)
- Green cess (levied on cars above 2000cc)
- Handling/logistics charges
The add on factors that can be included in on-road price are:
- Zero depreciation insurance
- Extended warranty
- Annual maintenance package
- Standard accessories
What is difference between on-road price and ex showroom price?
The ex showroom price is the price tag shown to you at any website or at vehicle showroom as the price of the vehicle. The on-road price is the total price you pay to the seller as a whole to buy the vehicle. It may look confusing, but it is true that a single vehicle has two prices – one is ex showroom price, and the other is on-road price.
This is a broader aspect, but if you minutely notice the difference between on-road price and ex showroom price, you will find that:
|Ex-showroom Price||On-road Price|
From the price point, the on-road price is approximately 10%- 15% more than the ex showroom price. This percentage will further vary as per from which unit your vehicle is coming. If your vehicle is coming from the Completely Built-up Units (CBU), it will have higher taxation than the vehicles of Completely Knocked Down (CKD) Units.
How to calculate on-road price?
The best way to calculate on-road price of car, bike or scooter is to rely online on-road calculator, where you need to put your car details like make, model, trim and your preferred location and you will get the exact on-road price along with the price bifurcation.
Visiting to a showroom, contacting with the salesperson and asking to calculate the on-road price of your chosen car, is really not a good idea standing in 2021. It will be much better to rely on the technology and calculate the on-road price by your own with the help of on-road price calculator.
How to check on-road price of car?
You can simply visit the website of a reliable platform like Droom where each new car has been listed, mentioning the ex showroom price as well as the on-road price. You can even calculate the on-road price of your favourite car by using on-road calculator. In this way, you can check on-road price of car.
How to check on-road price of bike?
You can rely on the calculator, to personally calculate the price on the basis of the particular make, model, trim of bike, you are selecting at your preferred location and in that way, you can check on-road price of bike along with the price split as well.
How to check on-road price of scooter?
You should check and recheck which all elements you can exclude to reduce your on-road price. You can even change the location to see the changes in on-road price. Like this, you can check on-road price of scooter, to make it more affordable.
What factors influence the increase of on-road price?
The major factors are RTO charges, insurance, road tax, TCS charges, green cess, legal charges, logistic charges, which directly influence the increase of on-road price. You will be surprised to know that on prices differs from place and place and keep on increasing in Tier 1 cities due to ex showroom price itself. This is because taxes and charges are mainly levied on ex showroom price.
For example: If someone wants to purchase a car in West Bengal and picks a car in Kolkata, the price will be must higher in comparison to Asansol. This is the main reason why we get to see more number plates starting with ‘PY’, ‘NL’ state code. Taxes on Union Territories are much lower than any other states. Even the transportation charges are an important factor behind the on-road price of a car, bike or scooter.
So, next time when you decide to purchase a car, a bike or a scooter, make sure you give immense importance to the on-road price. Do spend good amount of time calculating on-road price online and then only decide the right location to purchase your vehicle. Do not allow the seller or dealer to sell unnecessary products or services along with the vehicle and be extremely aware of the hidden charges as well.