Are you going to purchase a new car or a two-wheeler? There are mainly two kinds of prices associated with any two-wheeler and four-wheeler vehicle before you purchase it from showroom i.e. Ex-showroom Price and On-road Price. On-road price is simply higher than Ex-showroom Price and the difference depends upon the model of vehicle and location where you are purchasing that particular vehicle.

Ex-showroom Price

Ex-showroom price is the initial price that a manufacture desires to get for their product. It is the total sum of fundamental price, dealer’s margin and all the taxes excluding statutory taxes. Here statutory taxes refers state or local government’s tax, cost of accessories, insurance carriages, registration cost etc. Hence if you want to run your vehicle on road after purchasing then you will have to pay some additional charges. So don’t be confused that you are going to purchase your desired vehicle on basic price, otherwise you may have to face a surprising experience.

 On-road Price

On-road price is the actual price you will have to pay after purchasing a specific vehicle as no vehicles can be sold on its Ex-showroom price. It includes registration cost, RTO cost, necessary insurance cost, dealer charge, accessories cost like foot mat, seat covers, steering grip etc. state tax, road tax with the ex-showroom price of that particular vehicle. If you calculate the margin in between Ex-showroom and On-road Price, you will find the difference of almost 10 to 20%.

Hence, before purchasing a new two-wheeler or four-wheeler, it is essential for you to understand the key difference among them. In short, Ex-showroom price is the basic price while on other hand On-road Price is the invoice price. No vehicles are allowed to purchase at their ex-showroom price. Users will have to pay the on-road price if they want to take out the vehicle from showroom and drive on the road.