How to get an effective on-road price?
Besides essentials such as vehicle registration, tax, and insurance, you can opt for as many additional components as you want. Just that, it will increase your vehicle’s on-road price. Therefore, make an informed decision and purchase cautiously to ensure an effective and competitive on-road price. Here are some factors that you must keep in mind:
Registration charges:
Registration charges are essential expenses. You cannot do away with them. What you can do, is not go for special or fancy registration numbers. That way you can save a significant amount of unnecessary additional pay.
Annual maintenance package:
Check the components of the annual maintenance package offered by the dealer. Do not make a rushed decision. Compare components with the inclusions of your vehicle insurance policy even if you have opted for an own-damage cover or comprehensive insurance, and see if there is any overlapping. Also, consider the potential use of the vehicle and cross-check if you need an extensive maintenance package. If not, do not shell out money on the maintenance package.
Selection of accessories:
It is recommended you make a clear distinction between the essential accessories such as seat covers and floor mats and the non-essential ones. For non-essential ones, you should go with a fixed and pre-determined budget; otherwise, you can easily sway off and exceed your budget leading to major expenses.
Extended warranty:
Keep in mind that you will get a warranty from the manufacturer which will be restrictive in terms of time and distance covered. So, before you jump on to extend your warranty and pay additional money for it, pause and gauge the usage frequency of the vehicle. If you won’t be using your vehicle extensively, then there is no point in increasing the on-road price of the vehicle with the extended warranty.
Discount by the dealer:
This can provide you with a significant rebate on the final that is the on-road price of the vehicle. More often than not, dealers offer lucrative discounts on vehicles when purchased from their showrooms. Research well and look out for such discounts from the dealer.
Seasonal offers:
Dealers of vehicles and owners of showrooms also come up with seasonal offers. During the time of festivities such as Diwali, Navratri, and New Year, you may find seasonal discount offers. Keep a track of such offers and plan your car or bike purchase during such seasons to get the benefit of the seasonal discount offers.
Insurance:
Irrespective of the source you buy your vehicle insurance cover from—whether you buy it from the insurance provider directly or the dealer—make sure you are not paying out premium money for unnecessary or redundant coverage and/or features which might not be of any use to you.
Conclusion
Now, that you know the difference between the ex-showroom and the on-road price, you are in a better position to understand how the pricing of a vehicle is usually done. Also, it is all the more important to understand the components of the two prices and what affects them. Here, is a quick recap of the important points that must be kept in mind before you pay the on-road price for your vehicle:
- The on-road price is always more than the ex-showroom price.
- Ex-showroom price is not inclusive of the registration charges, road tax, and insurance.
- The on-road price has some essential components and some non-essentials. Thus, the final on-road price varies as per the services and accessories you chose to avail.
- It is the ex-showroom price that is usually advertised.
- The price that you pay during the final purchase of the vehicle and make it ready to use on the roads is the on-road price.
FAQs
Can I buy car insurance from any insurance company other than the one suggested by the car dealer?
Yes, you can buy car insurance from any insurance company that you deem fit for your car and preferences. You do not have to buy an insurance plan from the company suggested by your car dealer.
Can a car’s on-road price vary from one car showroom to another?
A car’s on-road price depends on several factors which vary from service to service and product to product. Consequently, depending on the type and number of services and accessories available, the on-road price of a vehicle varies across showrooms.
How to arrive at a car’s ex-showroom price and on-road price?
The ex-showroom price means the price which the dealer pays to the manufacturer. It includes factory cost, GST, and the dealer’s profit margin. Now, to this ex-showroom price add the cost of registration, road tax, and insurance to arrive at the on-road price. The on-road price can further increase if you take additional services and products.
Why is it that a vehicle is usually more costly than what it is advertised as?
A vehicle is usually more costly than what it is advertised as because advertisements highlight the ex-showroom price and the vehicle costs more when brought to the road. The on-road price is always higher than the ex-showroom price.
Why is it that in most cases the on-road price of the vehicle is not mentioned in the advertisements?
It is important to note that the components of the on-road price of a vehicle are subject to the choices made by the customer. On-road price primarily includes registration charges, road tax, and insurance. These are compulsory expenses while the rest are negotiable. However, whether the customer will pay the compulsory expenses through the dealer, or will take up to arrange and pay for them on their own, is a choice. Therefore, that cannot be put across in the advertising amount.
Is it possible to get a discount on the vehicle’s ex-showroom price?
Chances are very low that you will get a discount on the ex-showroom price. However, you can bag attractive discounts on the on-road price of a vehicle.
How can I find a car’s approximate on-road price?
Several online calculators can help you find the approximate on-road price of a vehicle based on the ex-showroom price. Or, you can call the dealer of the vehicle and ask them for the quote.
Is it all right if I do not buy the extra accessories and servicing package from a dealer?
It is absolutely fine if you do not buy the extra accessories and servicing package from the dealer. You should be cautious while choosing accessories and refrain from making unnecessary purchases. Go for those items which you think are essential. Also, you may buy the accessories from some other source as well.