What Does On-the-Road Price Mean?
1 Answers
On-the-road price includes the ex-factory price + purchase tax + insurance + vehicle and vessel tax + license plate fee + decoration fee, etc. Here are the details: 1. Ex-factory price: Generally, the on-the-road price is based on the ex-factory price. After purchasing a car at the ex-factory price, consumers can then pay for the purchase tax, various insurances, vehicle inspection, license plate, etc. 2. Purchase tax: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles domestically. It is determined by the ex-factory price of the vehicle (excluding VAT). The more expensive the car, the higher the purchase tax. Currently, the vehicle purchase tax rate is 10%. 3. Insurance: This refers to motor vehicle insurance, a type of commercial insurance that compensates for personal injury, death, or property damage caused by natural disasters or accidents involving motor vehicles. 4. Vehicle and vessel tax: Vehicle and vessel tax is a behavioral tax levied on vehicles traveling on public roads and vessels sailing in domestic rivers, lakes, or territorial ports, calculated based on their type, tonnage, and specified tax amount. Since it is a local tax, prices may vary by region, with fees divided according to engine displacement. 5. License plate fee: After completing the insurance and tax payments for a new car, owners can take these documents to the vehicle management office to register the vehicle, i.e., obtain a license plate. 6. Decoration fee: For some luxury or sports car buyers, personalization is often pursued, requiring additional customization when purchasing the vehicle. This cost will ultimately affect the on-the-road price.