How to Calculate the Total On-Road Price of a Car?
3 Answers
Car on-road price refers to the total cost required to purchase a vehicle. The on-road price = ex-showroom price (4S store car price) + purchase tax + car insurance (compulsory traffic insurance and commercial insurance) + vehicle usage tax + license plate inspection fee. Below are the specific details about the on-road price: 1. Ex-showroom price: This is the selling price at the 4S store, generally referring to the car price after discounts, excluding other fees. 2. Vehicle purchase tax: A mandatory fee when buying a car, approximately 8.55% of the ex-showroom price. 3. Car insurance: Includes compulsory traffic insurance and commercial insurance. The former is mandatory, while the latter is optional. 4. Vehicle usage tax: A compulsory tax at the time of purchase, which also needs to be paid annually. 5. License plate fees: Include service fees, processing fees, and license plate fees.
I learned the total on-road price calculation method from a friend, which is the sum of all the money you need to pay after buying a car. It can be broken down into several steps: first, the ex-factory price, which is the basic car price you negotiate with the salesperson; then add the purchase tax, collected by the tax bureau, approximately 10% of the ex-factory price—for example, if the car price is 200,000 yuan, the tax would be 20,000 yuan; next is the insurance cost, where compulsory traffic insurance is mandatory, and commercial insurance is optional, with prices varying based on the car model, insurance company, and region, generally ranging from a few thousand to over ten thousand yuan; followed by the license plate fee, the cost for registering the car at the vehicle management office, usually a few hundred yuan, though dealerships may charge more for handling it; finally, there are other fees like financial service fees and delivery fees, but some are unnecessary and can be negotiated down. I remember when I last bought a car, the ex-factory price was 180,000 yuan, and after adding various taxes and insurance, the total on-road price was nearly 210,000 yuan. Don’t just focus on the ex-factory price—the total expenses can easily exceed your budget. It’s advisable to list and check all items before picking up the car to have a clear idea of the costs.
When calculating the on-road price, I always think about how to save money. The core is the ex-factory price plus necessary fixed costs: the ex-factory price can be bargained, so haggle with the dealer; the purchase tax is fixed at 10%, no room for negotiation; compare several insurance quotes, online is cheaper than offline; don't get ripped off by the 4S store for license plate fees, go to the DMV yourself and spend only two or three hundred; avoid additional fees like decoration and service fees, as they are inflated. For example, before buying a car, I checked prices online: the ex-factory price was 150,000, tax 15,000, insurance 5,000, and I saved 500 by registering the car myself, so the on-road price was less than 170,000. Remember, the on-road price represents actual expenses, don't easily believe the salesperson's hype, leave some room for unexpected costs, as there might be expenses like car washing or repairs after getting the new car.