On-Road Price - Detailed Explaination with Break-up 

Selecting the right car that fits in the budget and solves the purpose is what the Indian car buyers look for. Starting from selecting the right variant to taking delivery of the car, it is a long procedure. During the paperwork of the car, we are often given a long list that includes various prices and costs that read ‘On Road price’ & ‘Ex-showroom price’.

It usually happens that the ‘ex-showroom price’ fits in our budget and the ‘on-road price’ goes beyond our budget eventually making us think twice. In this article, we explain to you what this ‘On-Road Price’ is & how you can reduce it

 

• What is ‘On-Road Price’?

• What is included in it?

• Which factors affect the on-road price in India?

• How to calculate it?

• Why does it change according to the cities? 

 

What is the on-road price?

• On-Road price or OTR price of a vehicle is basically the all-inclusive amount that you pay while buying your new car. It is the invoice bill of your car, the total amount of the car before it hits the road. The ‘ex-showroom price’ is the basic price of the vehicle at the showroom excluding additional mandatory costs like insurance, taxes to be paid to drive a car on the road . The ‘ex-showroom price' is fixed for a city/state or country based on the manufacturer whereas the ‘on-road price’ differs based on the configuration, add-ons and discounts

• It also depends on which car you get and what are the cost percentages of tax charges, RTO fees & many others. The on-road price of the vehicle is always higher than the “ex-showroom price”.

 

What is included in it?

All of the additional costs mentioned below plus the ‘ex-showroom price’.

• This includes your insurance, RTO fees, road tax, TCS charges (for cars with ex-showroom price above Rs 10 lakhs), green cess (for cars above 2000cc), handling/logistics charges and other adds on that you opt for such as 

•        Zero depreciation insurance

•        Extended warranty

•        Annual maintenance package

•        Standard accessories

•        Fasttag

The on-road price is approximately 15% more than the ‘ex-showroom price’. It also depends on the discount on the vehicle and where the car is built. For eg- Cars coming from the CBU ( Completely Built-up Units) Route always have higher taxation than the cars of CKD (Completely Knocked Down Units).  

 

Which major factors affect the On-Road price in India?

• Tax- It is one of the major components that add up in the price of your car.

Starting from the manufacturers that have to pay the variable taxes depending on the size of the vehicle and engine capacity. For eg - automakers have to pay less tax for their cars under the 4-metre length bracket than cars who exceed the 4-metre limit. That is the reason we see so many sub-4-metre cars for sale in the market. The dealers also need to pay the ‘tax collected at source’ known as TCS while procuring a new car in stock. Talking of the year 2020, GST is included in the ‘ex-showroom price’ that may increase the initial price for starters.

• Add Ons- It is notable that your OTR price can get a considerable higher increase depending on your options. Nowadays you get a ton of accessories and additional equipment list from the dealers that include door visors, roof rails, bumper protectors, chrome-kit, seat covers and the list goes on.

           Such factors give your on-road price a surge.

• Registration charges- While buying a new car, many people in India, as well as the whole world, are fond of getting their lucky set of numbers. The choice of numbers also plays a huge role and can take up the RTO costs at a 6 digit figure just alone for the registration number. Auctions are held for allocating these numbers. The prices of registration numbers in India for numbers such as 0001, 9999, 7777, 0005 are usually higher.

How to calculate it?

• Earlier, calculating the on-road price of your vehicle was not an easy job. Visiting dealerships, contacting salespersons and communicating with the representatives took a whole lot of time for getting your on-road price quote. 

• Living in the year 2020, the modern era of technology where everything has gone online, getting your on-road price quote is also just a click away.

• Sitting pretty at your home, you can know the on-road price of your desired vehicle in your region in just a couple of clicks.

• MYNEWCAR.IN offers the on-road price of various new vehicles in India that are on sale such as the New 2020 Hyundai Venue iMT, New 2020 Hyundai Creta, 2020 Maruti Suzuki D-ZIRE & many other popular cars.

• While purchasing your new car, dealers often tend to sell you packages and extra accessories that you may never use. Make sure that you only tick the correct essential boxes and other compulsory options. Calculating the additional money after the ex-showroom price and demanding an explanation for every amount that is being added is the customer’s responsibility. 

• Miscellaneous hidden costs and other important factors such as insurance should be enquired. Important details of insurance, its tenure and what type of insurance it is should be known by the buyer.

• This may help you in reducing your on-road price and hence saving your hard-earned money.

Why do ‘on-road prices’ of cars change according to different cities?

• On-road Prices differ due to the ex-showroom prices itself. Percentage of taxes and charges solely depend on ‘ex-showroom price’. If the ‘ex-showroom’ price increases, naturally you will see an increment on your ‘OTR’ price.

• The prices of cars differ substantially depending on which region they are for sale. It depends on the tax rate imposed by the state . Road tax and other major tax prices are less in Union territories, as a result, cars cost much cheaper there.

• We often see number plates starting with ‘PY’, ‘NL’ state code on various supercars and high-end luxury vehicles. The main reason behind this is the registration cost is comparatively more economical than that of the top tier cities.

• Transportation charges are also an important factor and it gains the price

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