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Difference Between Ex-Showroom Price and On-Road Price

difference between ex-showroom price and on-road price

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.

What is the Ex-Showroom Price?

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.

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What is the On-road 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

Difference Between Ex-Showroom Price and On-Road Price

Below are the key differences between the ex-showroom and on-road price of a vehicle.

AspectEx-showroom PriceOn-road Price
DefinitionBase price set by the manufacturerFinal price paid by the customer
TaxesIncludes GST but not road taxIncludes road tax and other state charges
InsuranceNoYes, insurance is mandatory
Registration FeesNot includedIncluded
Additional ChargesNo dealer handling chargesIncludes handling charges, extended warranties, etc.

Also Read: Know About These Charges Before Applying for a Used Car Loan

Factors Influencing On-road Prices of Used Cars

The on-road price of a used car depends on various factors, including:

  • Age of the Car: The age of the old car you are buying impacts the overall price of the car. The older you are, the lower the registration and insurance costs.
  • State-wise Tax Regulations: One of the key factors is the road tax which often varies from state to state, leading to final price.
  • RTO Registration Charges: RTO also affects the total price which is based on the vehicle's age and condition.
  • Additional Accessories: Take into consideration the extra accessories that choose to add in the car.
  • Financing Costs: When you are using a loan, it can also impact the total processing fees, along with Used Car Loan interest rates impacting the final amount paid.

Factors Influencing Ex-Showroom Price of Used Cars

Ex-showroom prices for used cars can also vary based on multiple factors:

  • Brand and Model: High-end or luxury models have higher base prices.
  • Vehicle Demand: Popular cars tend to have stable or higher ex-showroom prices.
  • Market Trends: Seasonal fluctuations or discounts offered by manufacturers.
  • Fuel Type: Diesel and hybrid models often have different pricing compared to petrol cars.
  • Technology and Features: Advanced safety and entertainment features impact pricing.
  • Location: Transportation and logistics costs differ across states, affecting pricing.

Also Read: Benefits of Using Used-Car Finance Calculator

Ex-Showroom Price vs On-Road Price When Financing a Used Car

If you are to buy a pre-owned car with a Used Car Loan, then consider these factors:-

  1. Loan Amount: Remember that lenders often provide loans based on the ex-showroom price, not the on-road price.
  2. Down Payment: The buyer must pay the difference between the loan amount and the final on-road price.
  3. Insurance Cost: Some lenders include insurance costs in financing, increasing EMI payments.
  4. RTO & Tax Charges: These are often paid upfront and not included in the loan.
  5. Interest Rates: These generally vary based on credit scores and loan tenure.
  6. Total Ownership Cost: Beyond loan EMIs, factor in maintenance and fuel expenses.

Conclusion

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.

Frequently Asked Questions

1. How to Calculate the On-Road Price of a Car?

The on-road price is calculated by adding the ex-showroom price with road tax, insurance, registration fees, and additional charges.

2. What is On-Road Price and Ex-Showroom Price?

Ex-showroom price is the base cost of a car, while on-road price includes all additional expenses required to legally drive the car.

3. Is Registration Cost Included in the On-Road Price?

Yes, registration charges are included in the on-road price, as they are mandatory for legally owning the vehicle.

4. Is Road Tax Included in the Ex-Showroom Price?

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.

5. What are RTO Charges, and Are They Part of 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.

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About Hero Fincorp

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.