Obnews Automobile Desk: Whenever you see an advertisement of a car, bike or scooter, the price mentioned in it is its ex-showroom price. But when you go to the dealership to buy the same vehicle, its on-road price is high. The reason for this is that many types of taxes and additional charges are added on the purchase of the vehicle. Let us know how much there is a difference between ex-showroom price and on-road price and what taxes are included.

How much difference between ex-showroom and on-road price?

The ex-showroom price includes only the construction cost of the vehicle, the dealer's profit and the Goods and Service Tax (GST). But when it has to complete formalities like registration, road tax and insurance to run it on the road, then its price increases. This final value is called on-road price.

If the customer takes extra features, accessories or warranty plans at an on-road price, then this cost may increase further. This difference in many expensive cars reaches millions to crores of rupees.

What taxes and charges are included in the on-road price?

1. Registration Charge

It is mandatory to register any new vehicle with RTO. Under this process, the vehicle gets a unique number, which has to be paid for the use. This fee varies according to the state.

2. Road Tax

Road tax is a one -time charged fee, which allows the vehicle to run on the roads. This tax is determined based on the ex-showroom price of the vehicle.

3. Green Tax

Green tax is also called environmental tax. It is planted on vehicles that spread pollution. For example, this tax is levied on private vehicles older than 15 years old in Maharashtra and commercial vehicles older than 8 years.

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4. TCS – tax collected at source at source

TCS is a type of tax, which is taken by the dealer on the purchase of a vehicle. This is 1% of the ex-showroom price of the vehicle.

5. Insurance

It is mandatory to insure the vehicle. This insurance is taken to protect against accidents, theft or any other damage. According to the insurance plan, there may be a change in on-road price.

Does fastag and car loans increase the price?

If you buy the vehicle on a loan, the loan interest rate increases your total cost. In addition, fastag is mandatory, it is necessary to take a fastag when purchasing a vehicle for electronic payments on the toll plaza, which further increases the total expenditure.