How to Calculate the On-the-Road Price of a Car?
1 Answers
The on-the-road price of a car refers to the total cost incurred when you drive the car off the lot, which includes the ex-factory price (or base price) of the car plus the vehicle purchase tax, insurance (commercial insurance and compulsory traffic accident liability insurance), vehicle and vessel usage tax, and the fees for vehicle inspection and license plate registration. Here is a detailed breakdown of these costs: 1. Ex-factory price: This is the manufacturing price of the car itself, excluding taxes and other fees. 2. Vehicle purchase tax: This is a tax levied on the purchase of a car, calculated at 10% of the car's selling price (excluding tax). The taxpayer is the unit or individual who acquires the taxable vehicle (through purchase, import, self-production, gift, award, or other means) for personal use, with a tax rate of 10%. 3. Insurance: This includes commercial insurance and compulsory traffic accident liability insurance, where the latter is related to the number of seats in the vehicle. 4. Vehicle and vessel usage tax: This is a tax payable by the owner or manager of vehicles and vessels within the territory of the People's Republic of China, in accordance with the Vehicle and Vessel Tax Law of the People's Republic of China. The annual tax amount varies depending on the engine displacement of the car. 5. Vehicle inspection and license plate registration fees: These can be handled by the car owner themselves or by the 4S dealership, with different costs involved in each case.
