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Understanding Car Prices: Ex-Showroom & On-Road
Posted on Tuesday, June 1st, 2021 | By IndusInd Bank
For a lot of people, owninga brand new car can be a dream. Some individuals diligently budget theirexpenses so that they can purchase a car. In fulfilling this dream, fundingsolutions such as loans are also beneficial. As a customer you need to bemindful of the specifics that go into purchasing a car. It is important toconsider the difference between the ex-showroom price of a vehicle and theon-road price in this respect.
Looking to apply for a car loan? Click here to get started!
What is the Ex-showroom Price of a Car?
The ex-showroom price of a car is the price of a vehicle at the showroom. In other words, it is the price at which the vehicles are usually advertised and includes the ex-factory cost, Goods and Services Tax, etc.
- Ex-showroom price is lesser than the On-road Price.
- Ex-showroom price does not include the expenses madetowards registration, insurance, and road tax.
What is the On-road Price of a Car?
The On-road Price of a vehicle is the price you pay to bring the vehicle from showroom to the road. For example, you need to pay the insurance premium, vehicle registration charges, and road tax; however, the amount paid for extended warranty, extra accessories, etc. is optional.
- On-road Price of a vehicle depends upon the type andextent of products/services you avail from the vehicle dealer.
- Vehicles are usually advertised based on theirEx-showroom price.
- On-road price is the final cost you incur to buy avehicle from the dealer.
Other Key Takeaways –
- Road Tax is a one-time tax that you need to pay to run yourcar in Indian roads.
- Handling/Logistic charges is a charge which is alreadyincluded in your vehicle’s ex-showroom price.
- Insurance protects you against any unwanted incidentthat may occur like an accident or theft.
- Extended Warranty is an add on that is beneficial forthe customer.
If you are in need of a car loan, IndusInd Bank has some lucrative options for you. The vehicle loans come with attractive interest rates and flexible repayable tenures. Enquire now at IndusInd Bank to know more about the vehicle loans.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
