The car's actual price does not include all the costs that you will have to pay. Ex-Showroom vs On Road Prices are common confusions among consumers.

From ex-showroom to on-road prices, we have explained every price. Below you will find the costs included and their percentages.

You've probably seen a car advertisement that says the car costs 10 lakhs. When you visit the dealership, you will find a new price for the car. It is less expensive for car manufacturers to advertise ex-showroom prices.

Your car's bill reveals other costs. Why? Is the calculation correct? Payment of all car prices is mandatory? Here's how it works. Read on sell car online india

Ex-showroom Price

You see this price in car advertisements. Ex-showroom prices include manufacturer's costs. GST (Goods Services Tax) is in addition to manufacturing costs. The ex-showroom price includes the dealer's profit as well. Ex-showroom prices do not include registration, road tax, or insurance. Taking your car on Indian roads requires you to do these things. The car's ex-showroom price helps to calculate taxes, cess, etc.

Because the ex-showroom cost is itself part of the on-road price, it is not difficult to understand the ex-showroom vs on-road price.

Registration Charges

Registration follows the purchase of a car. There is a unique registration number for every car. Ex-showroom prices include this as the first add-on. RTOs will assign unique registration numbers to each vehicle. You should not choose purely based on cost. Automobile registration is done in the state where you live permanently. KA, DL, HR, etc., are the initial letters representing the state code for the car. Series codes follow registration numbers, then area codes. Dealers may also offer additional costs, such as number plates, smart cards, etc.

Read More- Buy Certified Second-hand Cars with Warranty in Varanasi

Road Tax

Using Indian roads requires you to pay a one-time tax. From 3% to 20% of the car's ex-showroom price is the percentage of the road tax. Dealers usually overcharge your road tax to cover bribes or perhaps a mediator's fee. Don't let this happen to you. Make sure that the road tax they are charging you is fair. Before you leave the dealership, check all the papers and receipts.

Green Cess

Make sure you pay attention to this. All diesel vehicles over 2000cc on Indian roads must pay 1% Green Cess after Delhi and NCR ban diesel. A vehicle with power below 2000cc doesn't need this so be careful!

Tax Collected at Source (TCS)

Dealerships levy this tax. This represents 1% of the car's ex-showroom price. Upon filing their income tax, the dealership receives this amount back. India's Government mandated this tax on all dealerships in June 2016.

Handling/Logistic charges

Your vehicle's ex-showroom price already includes this charge. It is a cost which is available in the showroom, as the name suggests. The vehicle's overall invoice still includes extra handling charges. It is possible to remove this cost. As per Indian Supreme Court rules, this is illegal. Government warnings are important for customers!

Insurance

Purchasing a vehicle requires insurance. Yes, this is a legal term, but insurance also covers you in case of accidents or theft. Policies of different types are available. You can choose from third-party cover up to zero-dep cover for your car. You'll also get the package you pay for so make sure you get it.

Extended Warranty

The customer will surely benefit from this add-on. There is a manufacturer's warranty on all the vehicles. You can cap based on time or miles. Many manufacturers offer the option to increase your car's warranty but at a price. Likewise, this appears in your vehicle's ex-showroom price. Reselling the property allows you to negotiate with the buyer. A resale value of this will pay for itself.

Annual Maintenance Packages

Today's cars require a lot of maintenance. Keeping the customer glued to the dealership or the brand for servicing is all they are trying to do with the annual maintenance packages provided by dealers. It is easier to do the services at prices lower than they provide, so buying an annual package won't make sense.

Essential Accessories

We all like to customize our cars with things like floor mats, mud flaps, and spoilers. Most dealerships bundle accessory packages with the vehicle invoice. Most of the time, they inflate the prices. Similar accessories are cheaper aftermarket than dealerships. It's not worth it.

On-Road Price

In addition to the  ex-showroom price, all the optional or mandatory costs of the vehicles make up the final On-Road price. There is confusion between the showroom and on-road prices because the on-road price comes with additional costs. You will pay the on-road price of your new vehicle, as well as the ex-showroom price. Now you know which price is on-road vs. ex-showroom!

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