How Can I Lower the On-Road Price of My Car?

Things to know to get the best price for your new car

Before stepping into a showroom, arm yourself with the right knowledge. The "on-road price" includes ex-showroom price, registration fees, road tax, insurance, and other handling charges. Unlike the ex-showroom price you see in advertisements, the on-road price is what you actually pay to drive your car home.

 

A few essential points to keep in mind:

 

• State-wise differences: Registration fees and road tax vary across states.

• Insurance flexibility: You aren’t obliged to take insurance from the dealer; you can choose external providers, which could be cheaper.

• Additional charges: Always review "handling charges" — some of these are negotiable or avoidable.

 

How to get the best price for a new car?

When thinking about how to buy a new car for the lowest price, timing and negotiation skills are your best allies.

 

• Festive sales: Diwali, Navratri, and financial year-end (March) are ideal, as dealers offer aggressive discounts to meet targets. This directly relates to Best time to buy a car strategy.

• Corporate tie-ups: Many automakers offer discounts for employees of reputed companies.

• Government schemes: EVs, for example, may qualify for incentives under FAME II policies.

 

In short, buying your car when sellers are keen to sell, and you’re prepared to bargain, makes a major difference.

 

What are the Top Bargaining Techniques when Buying a Car from a Dealer?

To really maximise your advantage, use these proven bargaining techniques:

 

• Be informed: Know the ex-showroom,on-road and competitor prices for your chosen model.

• Stay neutral: Express interest, but never seem desperate.

• Ask about older stock: Cars manufactured in the previous year (e.g., 2024 stock in 2025) often come with significant car price discounts.

• Bundle offers: Negotiate on accessories, extended warranty, and service packages instead of paying full price.

• Walk away tactic: If the deal isn’t to your satisfaction, walk away. Dealers often call back with better offers.

 

Practicing these techniques will bring you closer to answering "How can I lower the on-road price of my car?" effectively.

 

What are the Types of car price discounts?

Understanding the different types of discounts can boost your negotiating power:

 

• Cash discounts: Straightforward reduction in price.

• Exchange bonuses: Dealers offer a bonus amount if you exchange your old vehicle, known as car exchange offers.

• Corporate/Government employee discounts: Special prices if you belong to a listed company or government job.

• Festive offers: Bundled deals during festivals are often the most lucrative.

• Dealer-specific discounts: Individual dealers sometimes sweeten the deal independently.

 

Always clarify whether discounts are on ex-showroom or on-road price to correctly assess your savings.

 

What are the Factors to consider while deciding car price?

Several elements affect the final cost you bear:

 

• Location: Registration and insurance rates differ.

• Car model and variant: Higher variants mean not just a bigger sticker price but higher taxes too.

• Add-on accessories: Alloy wheels, sunroofs, and tech packages, while attractive, add up quickly.

• Loan interest rates: A lower EMI may sound good, but check total loan costs before signing.

• Car Insurance premiums: Opting for comprehensive insurance can be wise, but compare plans to save significantly.
   

When you weigh these factors thoughtfully, it becomes much clearer how to buy a new car for the lowest price without compromising on essentials.

Conclusion

Finding an answer to "How can I lower the on-road price of my car?" isn't just about haggling; it’s about knowing your rights, leveraging timing, and understanding where your money goes. Small moves like opting for external insurance providers or timing your purchase smartly can lead to significant savings.

 

Speaking of insurance, don’t settle for what the dealership offers you. Shriram Car Insurance is trusted for our customer-first approach, providing customisable, affordable, and comprehensive plans with quick claims and cashless garage networks across India. Choosing your insurance isn’t just smart—it’s a crucial step towards better ownership costs. Drive smart, buy smarter! Explore our plans today.

 

FAQs

1. Is it compulsory to buy insurance from the dealer?

No. As per IRDAI guidelines, you can purchase insurance from any provider.

 

2.  When is the Best time to buy a car for maximum discounts?

Festive seasons like Diwali and the financial year-end in March typically offer the best discounts.

 

3. What are car exchange offers and how do they work?

These offers allow you to exchange your old vehicle for a new one with a bonus discount on the new car’s price.

 

4. How can I find out if I am eligible for corporate discounts?

Check with your HR department or directly ask the dealership for their list of eligible companies.

 

5. How much can I typically save through car price discounts?

It varies, but during peak discount seasons, you can save anywhere from ₹20,000 to ₹1 lakh or more, depending on the model and location.