Planning to buy a new bike? You must have shortlisted the two and the finances so that you can purchase your dream bike. However, as a buyer, you should be aware of the essential information that goes into buying a vehicle. One of them is understanding the difference between ex-showroom and on-road prices.
What is Ex-Showroom Price?
The Ex-showroom price of a vehicle is the cost of the bike or car, barring the charges of registering the vehicle at the Regional Transport Office (RTO), insurance and road tax.
Below is everything you need to know about the ex-showroom price:
- Registration, insurance and road tax are three important components to ride or drive a vehicle on public roads in India.
- The ex-showroom price includes the factory cost of vehicles, Goods & Service Tax (GST) and profit margin of the two-wheeler dealer.
- The price at which the vehicle was advertised
What is On-road Price?
The on-road price of a bike or car is the final amount you pay to bring the vehicle from the showroom to the road, hence the name, on-road price.
Below is everything you need to know about the on-road price:
- The on-road price includes the ex-showroom price, the cost of vehicle registration, road tax and insurance.
- You can check online to know the ex-showroom price and on-road price calculator, or contact a dealer for more information.
What is the Difference Between Ex-Showroom Price & On-road Price?
Here are the major differences between the ex-showroom price and on-road price:
| Ex-showroom Price | On-road Price |
|---|---|
| This is the final price of vehicle | This is the final price of the vehicle |
| This price does not take into account the cost of registration, road tax & insurance. | This is the price that includes cost of registration, road tax & insurance. |
| This is lesser than on-road price. It is inclusive of GST, factory cost, & dealers profit margin. | The final price higher than the ex-showroom price |
What are the Factors that Affect On-road Price of a vehicle?
- Charges of Vehicle Registration: Whether you buy a new car or bike, it should be registered at the Regional Transport Office (RTO). The vehicle dealer that you are buying from gets it done with additional charges.
- Road Tax: This is calculated based on the ex-showroom price, which is 2% to 3%. Road tax remains valid for 10 to 15 years.
- Tax Collected at Source: The dealer charges 1% of the vehicle’s ex-showroom price as Tax Collected at Source (TCS).
- Cost of Accessories: These include essential accessories like floor mats, seat covers, navigation tools and other accessories.
- Green Cess: This is also based on ex-showroom price, varying depending on government policies.
- Insurance: According to the Motor Vehicles Act, one cannot ride or drive on Indian roads without a valid motor vehicle insurance. You can either buy a Third-party policy or a Comprehensive Policy.
Conclusion
These are some of the main differences between ex-showroom price and on-road price. Also, it is important to understand the components of these two prices and what impacts them. At Doctor Garage, the best authorised service centre franchise in India, we emphasize understanding the ex-showroom price and on-road price before you buy any vehicle.
Read: List of Documents Required to Buy a Two Wheeler in India
