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On road price is the final price that an Indian buyer pays for buying a car. It is inclusive of the price of the car, all applicable taxes (excise duty, VAT, local state taxes and road tax), first-year insurance premium for the car and all other charges levied by the dealer. The formula goes like this:
On Road Price = Ex-Showroom Price + Octroi (or Municipal Tax, if any) + Road Tax and Registration Charges + Insurance Premium+ Other Charges
What is Ex-Showroom Price? Is it different for the same car for various cities?
Ex-Showroom price is the price of the car typically declared by its manufacturer for a particular city. It includes ex-factory price of the car, excise duty, other duties and VAT. It may or may not include local taxes such as octroi and other municipal taxes.
Ex-Showroom price varies for different cities. In fact it could differ from area to area of the same city in case there are different local tax structures for different areas.
What are typical dealer levied charges and other charges mentioned in the on road price quote?
Sometimes dealers charge a small amount as handling, incidental, and service or customer care charge. These charges are levied to offset the expenses incurred in selling the car to you. Other charges mentioned in the on road price quote could include depot charges, local taxes etc.
Does Road tax have to be paid every year, just like insurance?
No. Road tax is typically a one-time tax (in some states, it’s paid for five years as well) that needs to be paid while registering a new car. It is paid to the state government and need not be paid again as long as the car is driven in the same state.
Does On Road Price indicated by CarWale give information on all of the above aspects?
Yes. CarWale works hard to get you highly accurate prices all across the country along with various discounts and promotional offers. Our motto is to simplify car buying and we help car buyers make informed purchase decisions without giving up on the comfort of their home or office.
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