Difference Between A Vehicle’s Ex-Showroom Price and On-Road Price

Buying a new car is often a dream for many. Some choose to buy it early in their life while a few others patiently wait for the right time. Evaluating the necessary finance options is also critical in the buying process. In either case, as a vehicle buyer, you need to be aware of the details that constitute the price of your car/bike. And that’s where understanding the ex-showroom price and on-road price become crucial. This article elaborates on the meaning of both terms and the different components that are considered in their price. Here’s a breakdown of it.

What is the Ex-Showroom Price?

Ex-showroom price is the cost price of the vehicle; meaning, the price of the car without considering the registration charges, the taxes involved, and the motor insurance cover. While the above three components mentioned are critical to driving/riding a vehicle legally, they are excluded from the ex-showroom price. For a layman, the ex-showroom price is the price at which the vehicle is advertised by the manufacturer. Thus, the applicable goods and service tax, road tax, and other regulatory charges, are excluded from the ex-showroom price.

What is the On-Road Price?

On-road price, as its name suggests, is the price that you pay to get the vehicle home or be able to legally drive/ride on the roads. The ex-showroom price forms the basis for determining the on-road price. In addition to the ex-showroom price, it also includes road tax, goods and service tax, vehicle insurance cover. and other optional charges. * If you want to fit any accessories to your vehicle that are offered by the dealer, the dealer will include them in the on-road price. When shortlisting various vehicles, you can not only look up the ex-showroom price; you must also consider its on-road price offered by different websites. Additionally, any concessions that are offered by the dealer are also deducted from the on-road price. * To summarise, on-road price is the price you finally pay from your pocket (or obtain finance for) to get the vehicle home. * Standard T&C Apply

What are the points of differentiation between the ex-showroom price and the on-road price?

Ex-showroom price	On-road price
The price of the vehicle before factoring in any applicable taxes, cost of registration and insurance.	The price of the vehicle that is arrived at after including all charges like registration, insurance, taxes, and even including accessories.
The ex-showroom price is always lower than the on-road price.	The on-road price is higher than the ex-showroom price, since it encapsulates additional charges like registration, TCS, green cess, extended warranty, and more.
Ex-showroom price is the advertised price of the vehicle.	The on-road price is the final purchase price of the vehicle.

  While the final price of the vehicle is arrived at after including registration fees, road tax, tax collected at source, green cess, cost of extended warranties purchased (if any), annual maintenance charges, handling charges, and cost of accessories, it also includes a substantial cost of the motor insurance policy. The Motor Vehicles Act of 1988 makes it mandatory for all vehicles to have at least third-party insurance coverage. Thus, no vehicle, that is legally driven/ridden, can ply without a motor insurance policy. Selecting a motor insurance plan can be confusing with the myriad alternatives that are available. Here’s where you can make use of a car insurance calculator or two-wheeler insurance premium calculator. Both these tools allow you to compare the available plans, not only based on their price, but also on the feature sets they have on offer. Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.