What Does Ex-Factory Price Mean?
3 Answers
Ex-factory price refers to the price of a bare car, which does not include any additional costs beyond the vehicle price itself. Things to consider when buying a car: 1. Choose the brand and model; 2. Select the price range; 3. Communicate rationally with the salesperson; 4. Choose the configuration; 5. Pay attention to the contract; 6. Check if all the car-related documents are complete; 7. Inspect the exterior paint and interior condition of the car; 8. Verify if the production date on the vehicle's nameplate matches the related documents; 9. Check if the engine is working properly and if the basic functions of the car are normal. After purchasing the car, you will also need to pay for: purchase tax, vehicle inspection fee, license plate fee, vehicle and vessel usage tax, and compulsory traffic accident liability insurance.
The ex-factory price is just the cost of the car itself when you buy it, like buying a phone where you only count the price of the phone and not the case or screen protector. Last time I accompanied a friend to buy a car, the salesperson said the ex-factory price after discounts was 150,000 yuan, but the final out-the-door price was 170,000 yuan. The extra 20,000 yuan came from purchase tax, insurance, and license plate fees. So when negotiating the price, be sure to clarify the difference between the ex-factory price and the out-the-door price. Some dealerships offer low ex-factory prices but make up for it in service fees. Additionally, if you're financing the car, the ex-factory price determines the down payment and the base for monthly payments, which directly affects your budget.
Simply put, the ex-factory price is the sticker price on the car at the 4S store minus any discounts. I remember when I bought my first car, I haggled over the ex-factory price for a long time, only to find out at pickup that I had to pay tens of thousands more in taxes and fees. Now I've learned to be smarter—when negotiating, I break down costs like registration fees, compulsory insurance, and vehicle and vessel tax, since some dealers offer low ex-factory prices but make up for it with add-on packages. By the way, the concept of ex-factory price also applies to used cars, but for used cars, the ex-factory price already includes the transfer fee.
