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About On Road Price

On Road of a car, bike or a scooter is the final amount a buyer pays to the dealer while making a purchase. The on-road price varies from states to states and sometimes even from dealer to dealer. The discounts or additional accessories cost is included in the on road- price itself. It is similar to the MSP (Maximum Selling Price) of a car, bike or a scooter. On-Road Price has the following components:

  1. Ex-Showroom Price: It is the price of a vehicle at which it is sold to a buyer and includes charges such as state taxes, dealer margins, transportation and other excise taxes. This does not include any registration charge or insurance cost.
  2. Registration Charges(RTO): These charges are levied by the state transportation departments for registering a vehicle. After this, an RC is issued in the name of the owner and within few days a unique registration number is allotted to the vehicle. Registration charges vary from state to state and also according to the cost, weight and fuel type (petrol, diesel, electric etc) of a car, bike or a scooter.
  3. Insurance Charges: Whenever a buyer purchases a vehicle, it is mandatory for the vehicle to have insurance cover. The insurance charges depend on the ex-showroom price of the vehicle and they also vary according to the service provider
  4. Cess: Vehicles with the ex-showroom price greater than 10 lakh are subject to an additional 1% cess which is added in the on-road price of a vehicle.
  5. The final on-road price of a vehicle is the sum of Ex-showroom price, Registration Charges(RTO), Insurance Charges and cess (if any).

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