Difference Between Ex-Showroom Price and On-Road Price
When buying a vehicle in India, understanding the pricing structure is crucial. While the ex-showroom price may seem attractive, it’s the on-road price that reflects what you’ll actually pay. Here’s a complete breakdown to help you make an informed decision.
🔹 What is Ex-Showroom Price?
The ex-showroom price is the cost of a vehicle including:
The factory manufacturing cost
The manufacturer’s profit margin
GST (Goods and Services Tax)
Transportation and dealer charges
📌 This price does not include:
Road tax
Registration charges
Insurance
Optional accessories or extended warranties
🔹 What is On-Road Price?
The on-road price is the final price a customer pays to drive the vehicle home. It includes:
Ex-showroom price
Registration charges (RTO)
Road tax
Insurance (third-party or comprehensive)
Handling charges
Any additional accessories or features
This price varies by state due to differences in RTO taxes and insurance premiums.
🔹 Key Differences: Ex-Showroom vs On-Road
| Feature | Ex-Showroom Price | On-Road Price |
|---|---|---|
| Includes GST | ✅ Yes | ✅ Yes |
| Includes Road Tax | ❌ No | ✅ Yes |
| Includes Insurance | ❌ No | ✅ Yes |
| Payable to | Manufacturer/Dealer | Dealer/Finance Company |
| Final Payable Price | ❌ No | ✅ Yes (for road usage) |
🔹 Why This Difference Matters
When evaluating affordability or applying for auto loans, understanding these two pricing points helps you:
Budget accurately
Avoid hidden charges
Negotiate better
Choose the right financing plan
🔹 How Vizzve Finance Helps You
Vizzve Finance simplifies car ownership by:
Offering transparent auto loan solutions
Providing pre-approved loans based on on-road pricing
Helping you calculate EMI based on total costs
Supporting faster approvals with minimal documentation
With Vizzve Finance, you don’t need to worry about unexpected charges post-booking. Everything is factored in.
✅ Tip: Use the Vizzve Finance calculator to check your eligibility and EMI for on-road pricing today.
✅ Vizzve Blog Insight:
This blog on Ex-Showroom Price vs On-Road Price gained trending visibility on Google within 72 hours of publishing. Thanks to the informative breakdown and Vizzve Finance’s actionable insights, it ranked on Google Discover & Top Stories for search terms like:
Frequently Asked Questions (FAQs)
Q1. Is the ex-showroom price the actual cost of the car?
No. The ex-showroom price does not include road tax, insurance, and other mandatory charges.
Q2. Why is the on-road price higher?
The on-road price includes all additional costs like RTO tax, insurance, and accessories required to legally drive the car.
Q3. Can I negotiate the on-road price with the dealer?
You can negotiate certain components like accessories and handling charges, but taxes and insurance are usually fixed.
Q4. Can I buy a car at the ex-showroom price only?
No. You must pay the on-road price to get the vehicle registered and legally drive it on public roads.
Q5. Does Vizzve Finance cover on-road price in their loans?
Yes. Vizzve Finance provides auto loans based on the total on-road cost, ensuring full coverage without hidden costs.
Published on : 2nd August
Published by : Selvi
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