How to Calculate the On-Road Price of a Car?
2 Answers
Car on-road price refers to the total cost required to purchase a car. Car on-road price = Ex-factory price (4S store car price) + purchase tax + car insurance (compulsory traffic insurance and commercial insurance) + car usage tax + license plate inspection fee. The following are the specific details about the car on-road price: 1. Ex-factory price: The ex-factory price is the selling price at the 4S store, generally referring to the price of the car after discounts, excluding other fees. 2. Vehicle purchase tax: A mandatory fee when buying a car, approximately 8.55% of the ex-factory price. 3. Car insurance: Car insurance includes compulsory traffic insurance and commercial insurance. The former is mandatory, while the latter is optional. 4. Vehicle and vessel usage tax: A mandatory tax when purchasing a car, and it needs to be paid annually. 5. License plate fees: License plate fees include service fees, processing fees, and license plate fees.
Last time I bought a car, I finally figured out how the final price is calculated—it's basically the base car price plus various fees. The base car price is the negotiated price with the dealership—don’t forget to bargain, as this is the easiest part to get a discount on. Then, you need to add the purchase tax, which is about 10% and non-negotiable as it’s set by the government. Next is insurance: compulsory traffic insurance is mandatory, while commercial insurance like third-party liability varies and can cost thousands per year. Don’t overlook the registration fee, which includes license plate and inspection fees, typically ranging from 500 to 1,500—watch out for extra service charges some dealers tack on. If financing, you’ll also need to factor in interest and handling fees. All these hidden costs add up to the final price. I always make a checklist and tally everything to avoid overpaying. Before buying, ask the salesperson for a detailed quote and verify it in person to prevent disputes when picking up the car.
