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HomeFeatured ArticlesGoMechanic InformativeThe Difference Between Ex-Showroom Vs On-Road Car Price In India

The Difference Between Ex-Showroom Vs On-Road Car Price In India

Buying a new car? This one’s definitely for you! Do you know that there are a lot of costs that you have to pay along with the car’s actual price when you buy it? Ex-Showroom vs On-Road price is the popular confusion that most of us have.

We have explained each and every price starting from the ex-showroom price to the on-road price. Here you will find which costs are included and what percentage of the total cost each price shares individually.

Ex-Showroom vs On-Road Car Prices In India
Ex-Showroom vs On-Road Car Prices In India

You must have come across a car advertisement that quotes the car price to be around 10 Lakhs. But if you visit the dealership, you come across a new price that you will have to pay for the car. Just to let you know, the car manufacturers advertise their products with the ex-showroom price only as it looks a bit attractive to the customer just because it is relatively less.

As soon as you come across your car’s bill you realise that the dealer has added some other costs as well. What do they mean? Are the calculations accurate? Is it compulsory to pay for all the car prices? We’ve simplified this for you. Read on

  1. Ex-showroom Price

    Ex-Showroom vs On-Road Car Prices In India
    Ex-Showroom vs On-Road Car Prices In India

    This is the price which you see in the car advertisements as mentioned earlier. Ex-showroom price is the price which includes the manufacturer’s cost. The cost at which the car is manufactured at the facility along with the GST (Goods & Services Tax). The ex-showroom price also includes a bit of the dealer’s profit too. The ex-showroom price of your car doesn’t include the registration charges, road tax and insurance. FYI, these are the mandatory things you need to do before you can drive your car on the Indian roads. All the charges like the road tax, cess etc are calculated on the ex-showroom price of the car only.

    Ex-showroom vs On-Road price is not at all a complicated thing to understand because the ex-showroom cost is itself a part of the total on-road price of your vehicle.

  2. Registration Charges

    The next step after buying the car is its registration. All of us know that all cars have a unique registration number. Did you know you need to pay a cost for that as well? This is the first add on in the ex-showroom price of a car. The fees are incurred towards the allocation of a unique registration number to every car by the RTO. The amount differs from state to state but that doesn’t mean you can go for a cheaper option as per your convenience. Your car is registered in a state which is same as your permanent residence address. The car number has two initial letters which represent the state code (KA, DL, HR etc). Two unique numbers follow the letters which represent the area code followed by a series code and lastly the car’s four-digit registration number. Sometimes the dealers also put in additional costs like the cost of the number plate, smart cards etc which you can definitely negotiate on.

    This is the first addition in the discussion of the Ex-Showroom vs On-Road price.

  3. Road Tax

    Ex-Showroom vs On-Road Car Prices In India
    Ex-Showroom vs On-Road Car Prices In India

    This is a one-time tax that you need to pay to run your car in the Indian roads. The percentage of road tax is calculated on the ex-showroom price of the car and the range varies from 3% to 20%. The car dealers usually inflate the road tax in your bill stating that they will have to pay bribes or maybe a mediator fee. Don’t fall for this. Carefully inspect the road tax that they are charging you and make sure it is fair enough. Also, make sure you check all the papers and receipts before you leave the car dealership.

  4. Green Cess

    Pay careful attention to this one. After the ban of diesel vehicles in Delhi and NCR, the Supreme Court of India has imposed 1% Green Cess to all the vehicles on the Indian roads that are above 2000cc. You don’t need to pay this if you are buying a vehicle with power lesser than 2000cc so be careful with this one!

  5. Tax Collected at Source (TCS)

    Ex-Showroom vs On-Road Car Prices In India
    Ex-Showroom vs On-Road Car Prices In India

    This is a tax which is levied by the dealership. This amounts to 1% of the ex-showroom price of the car. However, this amount is credited back to the dealership’s account when they file their income tax. This tax was mandated by the Government of India for all the dealerships in June 2016.

    Don’t Miss! What the Union Budget 2020 will have for the Indian Automobile Sector?

  6. Handling/Logistic charges

    This is a charge which is already included in your vehicle’s ex-showroom price. As the name suggests, the company has given the cost for which the cost is available at the showroom. Dealers still try to include extra handling charges in the vehicle’s overall invoice. You can get this cost removed for sure. This is illegal as per the terms of the Supreme Court of India. The government has warned the dealerships multiple times regarding this but as a customer, you also need to be aware!

  7. Insurance

    Ex-Showroom vs On-Road Car Prices In India
    Ex-Showroom vs On-Road Car Prices In India

    The vehicle that you have purchased needs to be insured. No doubt this is a legal term but the insurance also protects you against any unwanted incident that may occur like an accident or theft. There are various kinds of insurance policies available. Starting from the third party cover, the policies go upto the Zero-Dep cover for your vehicle. The prices are also set accordingly so make sure you get the package that you have paid for.

    Read Steps On How To Reduce Your Car Insurance Premium

  8. Extended Warranty

    This is an add on that is surely beneficial for the customer. All the vehicles come with a manufacturer warranty. The capping can be done on the terms of the time period or the kilometre range. Most of the manufacturers provide an option to increase your vehicles warranty and for that, you need to pay a cost of course. This too gets added in the ex-showroom price of your vehicle. We suggest that you should go for this one because you can negotiate with the buyer at the time of resale. This is an added plus point which will pay for itself at the time of resale.

  9. Annual Maintenance Packages

    Ex-Showroom vs On-Road Car Prices In India
    Ex-Showroom vs On-Road Car Prices In India

    Car maintenance is really complicated in today’s world. The annual maintenance packages provided by the dealerships are not value-for-money to be honest because they are just a step to keep the customer glued to the dealership or to the brand for the servicing of the vehicle. The services can be done easily at prices cheaper than they provide so buying an annual package won’t be a smart deal at all.

  10. Essential Accessories

    We know that each one of us likes to customise our vehicles with some essentials like floor mats, mud flaps or even accessories like spoilers. Dealerships usually club an accessory package along with the vehicle’s invoice. They usually inflate the prices as mostly this one goes unnoticed. You can get similar accessories from the aftermarket for a price much less than what the dealership charges. Don’t fall for it.

    Read Here Are Some Best Car Accessories Available Online

  11. On-Road Price

    Ex-Showroom vs On-Road Car Prices In India
    Ex-Showroom vs On-Road Car Prices In India

    This is the final cumulative sum of all the prices stated above, The ex-showroom price along with all the additional costs whether optional or mandatory form up the On-Road price of the vehicles. Ex-Showroom vs On-Road price confuses many because the on-road price comprises of many additional costs which confuse many car buyers.

This was all about the car prices in India where we compared the ex-showroom price to the other additional costs that together make up the on-road price of your new vehicle. Ex-showroom vs On-Road price is no more confusion for you we suppose!

Vishal Khanna
Vishal Khannahttps://yt.vu/c/UCowI-iJCENrPhicwCoSkxZw
GoMechanic's OG Content Creator | Automobile Enthusiast | Automobile Engineer | Blogger | YouTuber | The DIY Automotive Guy

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