Ex-Showroom vs On-Road Prices: Key Differences Explained

When purchasing a new vehicle, you’ve likely heard terms like ex-showroom price and on-road price. While these terms are commonly used in advertisements, they often confuse buyers. Understanding the differences can help you avoid unexpected expenses and make an informed decision.

So, what do these prices represent, and why are they important? This guide delves into the ex-showroom and on-road price meaning, offering a clear ex-showroom price vs on-road price comparison to simplify the complexities of vehicle pricing.

What is Ex-Showroom Price?

The ex-showroom price is the price a dealer pays the manufacturer for the car before it’s made available to you at the showroom. This is the base price of the vehicle, which includes:

• Manufacturing Cost: The expenses incurred by the manufacturer in manufacturing the vehicle, such as raw materials, labour, and technology.
• GST (Goods and Services Tax): The applicable tax on goods and services in India.
• Dealer’s Profit Margin: The amount the dealer adds to cover operating costs and make a profit.

However, the ex-showroom price does not include additional costs like:

• Registration Fees: The cost of registering your vehicle with the Regional Transport Office (RTO), which is mandatory.
• Road Tax: A one-time fee for using the roads, determined by the state government.
• Insurance: A necessary coverage for the vehicle, which protects you against financial losses in case of accidents, theft, or natural disasters.

Read More : Benefits of Two-wheeler Loans for Women

What is On-Road Price?

As the name suggests, the on-road price is the final price you pay to take the vehicle out on the road. It includes the ex-showroom price and all the additional charges that come with owning and using a vehicle. These include:

• Ex-Showroom Price: It is the price at which the dealer sells the vehicle to you, but it’s not the final amount you’ll pay
• Registration Charges: The mandatory fee to legally register your vehicle with the RTO.
• Insurance Premium: The cost of purchasing vehicle insurance, which is required by law.
• Road Tax: State-specific tax for using public roads.
• Handling and Freight Charges: Any extra fees the dealer might charge for handling the vehicle and transporting it to the showroom.
• Accessories: Optional add-ons like floor mats, seat covers, or car security systems, which may or may not be included in the base price.

The on-road price represents the total cost you will pay to drive the car out of the showroom, and it varies based on your location and the specific charges levied by the local authorities.

Key Differences Between Ex-Showroom and On-Road Price

To simplify, here are the key differences:

How to Get the Best On-Road Price?

To make sure you’re getting the best deal, consider the following tips:

• Research Multiple Dealers: Prices can vary between dealerships based on location and ongoing promotions. Check with several dealers to compare offers.
• Ask for Discounts or Offers: Dealers sometimes offer promotional discounts on registration fees, accessories, or extended warranties.
• Negotiate: Don’t hesitate to ask for a better deal. Whether it’s a reduction in handling charges or added accessories at no extra cost, negotiations can help lower the final on-road price.
• Check for Hidden Fees: Some dealers might add additional hidden charges at the time of finalising the deal. Make sure you clarify the cost breakdown before making any payment.

Key Takeaways: Ex-Showroom vs. On-Road Price

• The ex-showroom price is the cost of the car without additional charges like registration, taxes, and insurance.
• The on-road price is the total amount, including all fees and taxes.
• Understanding both prices helps you budget for the total cost of ownership and avoid surprises.
• Always check the on-road price before finalising your purchase, as it includes all necessary expenses to legally own and drive the car.

Which Price Loan Providers Consider: ex-showroom or on-road?

Loan providers typically consider the on-road price when offering financing. This price includes additional costs such as road tax, insurance, registration fees, and any accessories or services added to the vehicle. However, it’s always advisable to confirm with your loan provider to understand their specific terms.

If you’re planning to finance a bike or scooter, a Two-Wheeler Loan can make the process easier. Muthoot Capital offers financing of up to 100% of the on-road price, ensuring a hassle-free way to own your dream vehicle.

How to calculate the EMI of a bike loan?

A Two-Wheeler Loan EMI Calculator is the ideal tool to determine your loan EMIs. By entering details like the loan amount, repayment tenure, and interest rate, you can calculate the EMI amount suitable to your budget and finances.

Key Benefits

Simplifies Bike Financing: Financing your bike with a Two-Wheeler Loan is quick and easy. Muthoot Capital offers competitive interest rates and flexible repayment terms, making it easier to own a bike without paying the entire cost upfront.

Customised EMIs: Flexi-EMI options allow borrowers to adjust their repayment schedule based on cash flow, ensuring affordability. Using the loan EMI calculator, you can input key details and find a manageable EMI and repayment tenure that fits your budget.

Read More : Impact of GST on Two-wheelers and Bikes in India

Conclusion

Understanding the difference between ex-showroom and on-road prices can help you make an informed decision, avoid hidden costs, and ensure you’re paying a fair price for your new vehicle. Don’t be misled by the initial price tag—always check the on-road price for a complete understanding of your car’s total cost.

For those looking to buy a new scooter or bike, you can finance the cost with a Two-Wheeler Loan from Muthoot Capital and repay it in equated monthly instalments. These loans offer competitive interest rates and flexible repayment tenures, making bike financing convenient and affordable.

FAQs

1. Does the On-Road Price vary by location?

Yes, the on-road price can vary depending on the state or city you are purchasing the vehicle from, as road tax and registration charges differ between regions.

2. Can the Ex-Showroom Price change over time?

Yes, the ex-showroom price can fluctuate based on factors like changes in GST rates, manufacturing costs, or updates to the vehicle model.

3. Is the On-Road Price negotiable?

Some components of the on-road price, like handling fees or accessories, might be negotiable, but registration and tax fees are fixed by the government.

4. Does ex-showroom price include GST?

Yes, the ex-showroom price includes GST, but it excludes road tax, insurance, and registration charges, which are additional.

5. What does ex-showroom price mean?

Ex-showroom price is the vehicle’s cost, including GST, but excluding road tax, insurance, registration, and other additional charges.