Car ownership is one of those special times when you are happy and proud to buy a car all by yourself. Having a car today has been a necessity for daily office commute, adventure trips, road trips, etc. Now when you are planning to buy a car, you will come across two major terms in the price segment known as ex-showroom price and on-road price. Understating these terms is very important so that you are always sure what you are paying and these are also helpful when taking out a Used Car Loan.
The ex-showroom price means the base price set by the manufacturer of the vehicle you are buying. It excludes all the additional charges such as registration fee, road tax, or insurance. The ex-showroom price only includes what dealerships charge customers before adding other required fees. It includes the factory cost of the vehicle along with GST.
It is important to note that this price often varies depending on the city and state you are buying the car. This price serves as a benchmark for determining the final cost of the vehicle, but it is not the amount a buyer pays as the final price.
The on-road price means the total cost a buyer pays when driving the car home from the dealer. It includes the ex-showroom price added with multiple additional charges such as registration fees, road tax, insurance, and handling charges.
These extra costs can differ based on the state's tax policies and the type of insurance chosen. On-road prices can also fluctuate due to additional services like extended warranties or accessories added by the buyer.
Also Read: How To Get A Second Hand Car Loan In Delhi-NCR
Below are the key differences between the ex-showroom and on-road price of a vehicle.
Aspect | Ex-showroom Price | On-road Price |
---|---|---|
Definition | Base price set by the manufacturer | Final price paid by the customer |
Taxes | Includes GST but not road tax | Includes road tax and other state charges |
Insurance | No | Yes, insurance is mandatory |
Registration Fees | Not included | Included |
Additional Charges | No dealer handling charges | Includes handling charges, extended warranties, etc. |
Also Read: Know About These Charges Before Applying for a Used Car Loan
The on-road price of a used car depends on various factors, including:
Ex-showroom prices for used cars can also vary based on multiple factors:
Also Read: Benefits of Using Used-Car Finance Calculator
If you are to buy a pre-owned car with a Used Car Loan, then consider these factors:-
Having a clear grasp about the difference between ex-showroom price and on-road price is very helpful to make a smart decision when buying a car on finance. Consider the various factors that impact the final price of your car and invest carefully. To get help financially, apply for a Used Car Loan from Hero FinCorp and take advantage of high loan amounts, less documentation, and competitive interest rates.
The on-road price is calculated by adding the ex-showroom price with road tax, insurance, registration fees, and additional charges.
Ex-showroom price is the base cost of a car, while on-road price includes all additional expenses required to legally drive the car.
Yes, registration charges are included in the on-road price, as they are mandatory for legally owning the vehicle.
No, road tax is an additional charge and is not included in the ex-showroom price. It is added to calculate the on-road price.
RTO (Regional Transport Office) charges cover vehicle registration and are included in the on-road price. These fees vary by state and vehicle type.
Disclaimer: The information provided in this blog post is intended for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any details mentioned here, such as specifications, features, and availability, before making any decisions. Hero FinCorp does not take responsibility for any discrepancies, inaccuracies, or changes that may occur after the publication of this blog. The choice to rely on the information presented herein is at the reader's discretion, and we recommend consulting official sources and experts for the most up-to-date and accurate information about the featured products.
Hero Fincorp offers a wide range of financial products including Personal Loans for personal needs, Business Loans to support business growth, Used Car Loans for purchasing pre-owned vehicles, Two-Wheeler Loans for bike financing, and Loan Against Property for leveraging real estate assets. We provide tailored solutions with quick processing, minimal paperwork, and flexible repayment options for smooth and convenient borrowing experience.