Understanding Ex-Showroom Price vs On-Road Pricing for Vehicles: The Key Differences Explained by John Kennedy

by time news

2024-01-31 22:14:52

Hello Sir, I have a confusion for long time. Ex-showroom price; On-road price? They spend money on TV ads; On top of that, they confuse and cheat with stars as usual. If you inquire at the showroom, they quote an amount. It is called the online price. Actually ex-showroom price; Onroad Pricing – What’s the Difference?

– John Kennedy, Vellore.

It’s not as cheating as you might think. It can be said as an advertising strategy. Ex showroom means car/bike manufacturers set a price for showroom dealers. That’s the ex-showroom price. This is the price you see on TV with the star code. If you buy a car/bike at this cost, you can keep it in the showroom without driving it. If you want to buy a vehicle and drive it on the road…that is, on the road, you will have to pay a lot of taxes to the government and the dealership. That’s called on-road pricing.

The ex-showroom price includes certain items. These include only the cost of manufacturing the vehicle, the Goods and Services Tax (GST), and the profit margin of the vehicle dealer. But if you want to drive the vehicle on the road, first the vehicle must be registered with the local RTO office; Then you have to pay road tax; A pollution tax should be levied on air pollution; The transportation charge for bringing the vehicle to the showroom is called handling charge. This includes everything. Additionally and most importantly, the insurance amount for the vehicle – all these must be paid. Only if it is built like that is the onroad price. Only then you can take the vehicle on the road and drive it. Some showroom dealers also charge extra for accessories like helmet, RC smart book, HSRP (High Security Number Plate), side guard, rearview mirrors, crash guard, side stand, number plate. This is also practical.

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