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

What is Ex-Showroom Price?

The base cost of a vehicle purchased from the showroom, including the cost of manufacturing, the dealer's profit margin, and Goods and Services Tax (GST), is called the ex-showroom price. However, it does not include the charges for vehicle registration, insurance, and road tax. 

Ex-showroom price is basically the cost you pay the dealer to buy a new vehicle, but you cannot legally drive it until you pay the necessary fees for registration, insurance, and road tax.

 

What is On-Road Price?

The on-road price encompasses all the expenses of purchasing a new vehicle, including registration, insurance, road tax, and any additional charges like extended warranty or accessories. The on-road price is higher than the ex-showroom price as it includes additional charges. This total cost ensures your vehicle is road-worthy and compliant with all legal requirements.

 

It's critical to comprehend the differences between the ex-showroom and on-road prices in order to prevent unforeseen costs. For example, a car's ex-showroom price might be ₹10 lakhs, but depending on factors like the state of purchase, road tax and the chosen Car Insurance Policy, the on-road price could be ₹11–12 lakhs.

 

Difference Between Ex-Showroom Price and On-Road Price

When state-specific taxes and insurance fees are included, the price difference between the ex-showroom and on-road prices might be substantial. Here’s a breakdown of the major differences between ex-showroom price and on-road price:
 

Ex-Showroom Price	On-Road Price
The price of the vehicle at the dealership, including manufacturing costs, dealer’s profit margin, and GST.	The total price you pay to own and drive the vehicle after buying from the dealer, including taxes, registration, and insurance.
Does not include costs like registration, road tax, and insurance.	Includes all additional costs required to legally drive the car, such as road tax, registration fees, and insurance.
Same across the country for a specific car model.	Varies depending on the state, type of insurance chosen, and other local fees.
Only covers the cost of purchasing the car from the dealer—you still need to pay extra for all legal requirements before driving.	Covers all legal and regulatory expenses, and any other additional purchases, making the car road-ready.

   

Getting the Best On-Road Price

Now that we’ve covered what the differences between ex-showroom price and on-road price are, here are a few tips to get the best deal when purchasing your vehicle!

 

• Compare insurance plans: The dealer you’re buying a new vehicle from may recommend buying in-house insurance, but it is always good to explore your options and check out the rates with a few different insurance providers. To get the best coverage for a price that’s right for you, compare insurance policies before buying one.

• Negotiate your add-on expenses: Car dealers often try to upsell extra items, raising the price to include things like warranties, extras, or paint protection. Although they have their uses, not everyone can afford or require them. You can omit the add-ons you don't require, allowing you to customise the final price to fit your needs and budget.

• Time your purchase: Festive seasons or the end of the financial year usually mean more dealership discounts, so take advantage of these deals to lower the on-road price significantly.

• Check for state-specific offers: The registration fees and road tax for vehicles vary from state to state. If you have the option of registering your vehicle in a different state, consider searching for special incentives or low-tax areas.

 

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

Here’s a quick rundown of the ex-showroom price vs on-road price comparison:

 

• The ex-showroom price of a car is the base cost. It includes the manufacturing cost, dealer profit margin, and GST.

• The on-road price is the ex-showroom price plus registration fees, insurance, road tax, and other charges. It is always higher than the ex-showroom price.

• The taxes in the state of purchase and the type of insurance you select will determine the gap between the on-road price and the ex-showroom price.

• Always ask your dealer for a thorough breakdown of the ex-showroom and the on-road prices. This will help you understand exactly where your money is going.

 

In Summary

The ex-showroom price gives you the base cost, while the on-road price is what you need to pay to drive the car on the road. These two costs must be factored in when budgeting for your next vehicle.

 

Getting the right insurance is just as significant as understanding the pricing when buying a car. With Shriram Car Insurance, you’re guaranteed a smooth insurance-buying experience, whether you need basic coverage or a comprehensive policy with add-ons like Roadside Assistance. With our hassle-free claims process, minimal paperwork, and reliable customer service, you can drive with complete peace of mind. Check out our range of Motor Insurance plans here.

 

FAQs

1. What is included in the ex-showroom price?

The base cost of a vehicle purchased from the showroom, including the cost of manufacturing, the dealer's profit margin, and Goods and Services Tax (GST), is called the ex-showroom price. However, it does not include the charges for vehicle registration, insurance, and road tax.

 

2. Why is the on-road price higher than the ex-showroom price?

The on-road price encompasses all the expenses of purchasing a new vehicle, including registration, insurance, road tax, and any additional charges like extended warranty or accessories. It is higher than the ex-showroom price, as it is the total cost calculated by adding further charges to the ex-showroom price.

 

3. Can the on-road price vary from dealer to dealer?

Yes, the on-road price can vary slightly between dealers due to differences in insurance packages, local taxes, and additional services or accessories offered. It's a good idea to compare offers from multiple dealerships before making a purchase decision.

 

4. Do I have to buy insurance from the dealer?

No, you’re not required to buy insurance from the dealer. The dealer you’re buying a new vehicle from may offer you in-house insurance, but it is best to compare prices and features from a few different insurance companies to get the best coverage for a price right for you.

 

5. How can I lower the on-road price of my car?

To lower the on-road price, consider negotiating dealer add-ons, comparing insurance options, timing your purchase around discounts or festive offers, and avoiding unnecessary accessories that can drive up the cost.