How to Calculate the On-the-Road Price of a Vehicle?
2 Answers
On-the-road price calculation includes the ex-factory price (4S store car price) + purchase tax + car insurance + vehicle usage tax + license plate inspection fee. Below is an introduction to the calculation method: 1. Ex-factory price: The selling price at the 4S store is called the ex-factory price; 2. On-the-road price: The on-the-road price of a car is the total cost required to purchase the car; the insurance cost includes compulsory traffic insurance and commercial insurance. Compulsory traffic insurance must be purchased for every vehicle, while commercial insurance can be selected as needed. Below is additional information about car insurance: 1. Traffic insurance: Traffic insurance, fully known as Compulsory Automobile Accident Liability Insurance; the first-year cost is for 5 private cars. Commercial insurance refers to all car insurance other than traffic insurance, including major insurances such as car damage insurance, third-party liability insurance, theft insurance, and passenger liability insurance, as well as targeted insurance types like spontaneous combustion insurance, water-related damage insurance, and glass insurance; 2. Car purchase insurance: Generally, the commercial insurance needed when purchasing a car includes car damage insurance, third-party liability insurance, and no-deductible coverage.
I remember when I bought my first car, I had no idea what the on-the-road price was, and only figured it out later. Simply put, the on-the-road price is the total amount you need to pay to drive the car away, including the ex-factory price, purchase tax, insurance fees, and license plate registration fees. The ex-factory price is the cost of the car itself. The purchase tax is calculated at about 10% of the ex-factory price—for example, a 200,000 RMB car would incur around 20,000 RMB in tax. Insurance fees depend on the coverage you choose; compulsory traffic insurance is mandatory, while commercial insurance is optional, costing a few thousand RMB per year. The license plate registration fee varies by region, ranging from a few hundred to over a thousand RMB. Some places also charge a vehicle and vessel tax or financial service fees, so it’s best to ask in advance. I recommend that beginners first inquire about the ex-factory price at the dealership, then ask the salesperson to provide a detailed list of all fees to calculate the total on-the-road price. Don’t forget to negotiate—lowering the ex-factory price can save you a significant amount overall.
