How to Calculate the On-the-Road Price of a Vehicle?

[DeFrank]

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.

[StLorenzo]

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.

[Correia]

As someone who frequently helps friends with car purchases, I find calculating the out-the-door price quite simple. It mainly consists of four components: the base vehicle price, purchase tax, insurance, and registration fees. The base vehicle price is the foundation, while the purchase tax is calculated by multiplying the base price by a ratio, typically around 10%. Insurance includes compulsory insurance and commercial insurance, with the latter depending on your needs. Registration fees vary by location. Every time I buy a car, I first check the manufacturer's suggested retail price (MSRP) online, then negotiate the base vehicle discount at the dealership. After settling on the base price, I ask the salesperson to list all other fees, and the sum total is the out-the-door price. Be wary of hidden fees, such as decoration charges or loan processing fees, and try to avoid them if possible. The out-the-door price is also affected by the region—registration fees are higher in big cities and lower in smaller ones. In short, budget carefully in advance to avoid overspending, ensuring a worry-free drive home.

[OBrody]

When helping my family buy a car, I'm most concerned about the total on-road price not exceeding the budget. The on-road price is the sum of all costs: the ex-factory price plus purchase tax, insurance, license plate fees, etc. The purchase tax is calculated at 10% of the ex-factory price, insurance depends on the car model, and license plate fees are a few hundred yuan. To save money, choose to buy during the off-season when the ex-factory price can be discounted. Also, don't opt for too many additional insurances; only buy the necessary commercial insurance. Last time I bought a 200,000 yuan car, the ex-factory price was 180,000 yuan, tax was 18,000 yuan, insurance was 5,000 yuan, license plate fee was 800 yuan, totaling around 203,000 yuan on-road. When negotiating, ask several dealerships and compare the on-road prices, not just the ex-factory price. This way, you can control the total expenditure, which is suitable for family savings.