(What is exshowroom price & onroad price. Explained with bike insurance details)
Whenever we go to buy any car. So at that time we are told two prices, ex-showroom price and on-road price. So let us know what is the difference between these two prices.
What is the ex-showroom price?
Terms like ex-showroom price are often used while buying and selling vehicles. This price is determined by the manufacturer or dealer. In this are added the expenses incurred while making the vehicle, the cost of all the materials used are added in it.
While buying a car, we have to register the car and also get it insured and additional charges are also added to it. So the showroom price does not include additional charges, insurance and registration fees. So this means that when the car is standing in the showroom then its price is stated in ex-showroom.
What is the on-road price?
After purchasing the car, before we take it home, we have to pay all these charges like…
- ex showroom price
- RTO registration fees
- road tax
- car insurance
- Other service charges – Number plate charges, cost of bringing the bike from the company to the showroom.
The price that comes to us after collecting all these charges is called on-road price. This means that we are now ready to take the car home.
Is it necessary to get car insurance?
If you want to drive any vehicle in India, you will have to follow the Motor Vehicles Act of India. In which it is said that you cannot drive on the roads without insuring your vehicle. If you do this then you will be fined. Meaning, it is mandatory for you to finally get your vehicle insured.
NOTE: The costs and charges included vary from state to state and also depend on the vehicle model.
Q. Is it mandatory to insure the vehicle?
A. Yes, it is mandatory to insure the vehicle under the Indian Motor Vehicles Act.
Q. Is it mandatory to get PUC done for the vehicle?
A. Yes, it is mandatory to get PUC done for the vehicle.