Difference between Ex-showroom Price and On-road Price

Key Difference: Ex-showroom price is the price of an asset like two-wheeler or four-wheeler, which includes cost of manufacturer, dealer margin, transportation, etc. On the other hand, On-road price includes ex-showroom price and other charges like road tax, insurance and service charges. A buyer needs to pay the on-road price which is usually 10 to 20 percent more than the ex-showroom price.

Ex-showroom prices and on-road prices are two different prices. A person when purchases a vehicle or car from a showroom, he needs to be aware with these two prices. A salesperson generally provides information on both types of charges. However, it may create some confusion for some people. Therefore, it is essential to know that which is the price that one pays for his or her car also about the components of it.

Ex-showroom price can also be considered as the actual price of the car. It is the cost at which the dealer has purchased it from the manufacturer. It also includes the tax amount which the dealer had to pay to the state government in order to get the car. In some place, it may also include octroi tax, if the product is being brought from some outside region or territory. This price is decided by the manufacturer and may vary from a city to another.

On the other hand, on-road price is the actual amount that the customer needs to pay to the vendor for buying a car. It is higher than the ex-showroom price as it includes other charges apart from it. It includes a lifetime road tax, which the customer needs to pay. Charges like registration and insurances are also included in this price, which needs to be paid or has to be renewed periodically.

On-road prices are generally 10-20 percent more than the ex-showroom prices, as that depends on many attributes like model, location, etc. Therefore, the buyer must study these prices carefully, and should understand that on-road price is the price that he needs to pay, not the ex-showroom price.  Ex-showroom prices do not include charges like registration, insurance or loadings like in the case of the on-road price.

Comparison between Ex-showroom Price and On-road Price:

 

Ex-showroom Price

On-road Price

Definition

It is the basic price which is quoted by the dealer. This price is decided by the manufacturer of the car.

It is the actual price which a customer needs to pay to the vendor for purchasing the car.

Components

It includes the factory price of the car and charges like dealer margin and excise duty. It may also include octroi tax.

It includes ex-showroom price and charges like life time tax levied by the state government, registration charges, first year insurance premium charges and logistics charges.

Value

Generally, 10 to 20 percent lower than on-road prices

Generally,10 to 20 percent greater than ex-showroom prices

Known as

Basic value of the asset

Invoice value of the asset.

Image Courtesy: theautomotiveindia.com     

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