Today, cars have become an important part of about 75% of the households in India. People buy featureless and affordable cars according to their needs, if you are also going to buy a car for yourself, then first know about the ex-showroom price and on-road price of the car. It may confuse you as to why the same car has two different price tags. If you have ever wondered why the on-road price is higher than the ex-showroom price, then you are not alone! Let's know the difference between them-

Ex-showroom price vs. on-road price: What is the difference?

Ex-showroom price:

Base price The ex-showroom price is the price set by the manufacturer for the car. It reflects the cost of the basic components of the car, including the engine, design, and various parts. It does not include any additional costs such as taxes or registration fees.

On-road price:

Total cost On the other hand, the on-road price is the final amount you pay to get the car from the showroom to your home. This price includes the ex-showroom price, but it also includes several additional charges such as:

Government taxes: VAT or GST that is levied by the government.

Registration charges: The cost of registering your car with the road transport authority.

Road tax: A mandatory tax for using the car on public roads.

Insurance: Insurance coverage for the car, which is required for registration.

Other miscellaneous charges: This may include handling, accessories, and other dealer-related charges.

Why the difference?

The difference between the two prices can be 1-2 lakhs or more, depending on the model and location. The on-road price includes all the additional costs that are required to drive your car legally and safely on the road.

Disclaimer: This content has been sourced and edited from [ZeeNewshindi].