When buying a car, you may have heard of two types of prices that get charged – the ex–showroom price and the on–road price of the vehicle. Have you ever wondered what is the difference between these two? If so, you are not alone for many people don’t understand the difference between ex showroom and on road price of a vehicle. This blog will help you get a better idea. Read on.

The ex showroom cost of a car is the cost that does not include road tax and other registration charges that are necessary to operate your vehicle legally on the roads in the country. The ex showroom charge simply includes the cost of the vehicle as advertised on the brochure. The ex showroom price does cover the GST of the vehicle you are buying.

Now that we know what is the meaning of ex showroom price of vehicle, let’s examine the on road price.

The on road price of a car is the price that includes all the excess charges you need to pay to operate your vehicle on the roads. These charges include the RTO registration fees, road tax, and motor insurance costs. It can also include other charges too as relevant.

The extra charges that can be added to your vehicle’s on road price will also include Green Cess and certain logistics charges. You may also end up paying more if you opt for additional accessories to be added to your car. You can also opt to extend the warranty of your vehicle by paying a bit more. This can prove to be a wise decision when buying a new vehicle.

You may consider negotiating with your car dealer when buying your vehicle to get a discount. You can ask for a few free accessories as many car dealers are known to provide these. You may even ask for a discount on any other charges or even a free delivery of the vehicle to your home. Most car dealers of leading car brands are known to offer a lot of facilities and free benefits to car buyers to celebrate this milestone.

As we can see, the on road price of a vehicle will be more than the ex showroom price.

Remember that you need to have at least third–party car insurance to drive your car on the roads in India. With a new vehicle, the car dealer will probably help you with the insurance formalities. If you are buying a second–hand car, remember to inquire about motor insurance and get the insurance transferred from the previous owner over to your name. You can also consider upgrading to comprehensive car insurance for better coverage for your vehicle.

We hope that this blog will help you when you set out to buy a car.