What does the on-road price of a car mean?
2 Answers
The on-road price of a car refers to the total sum of the car's ex-factory price, vehicle purchase tax, insurance, usage tax, and license plate fees. Below are detailed explanations of some of these items: 1. Ex-factory price: Generally, the on-road price is based on the ex-factory price. After purchasing a car at the ex-factory price, consumers need to pay for the purchase tax, various insurances, vehicle inspection, license plate registration, and other fees. 2. Vehicle purchase tax: This is a tax levied on individuals and entities purchasing specified vehicles within the country. Currently, the vehicle purchase tax rate is 10%. 3. Car insurance: This refers to motor vehicle insurance, a type of commercial insurance that compensates for personal injuries, deaths, or property losses caused by natural disasters or accidents involving motor vehicles.
The out-the-door price of a car refers to the total amount of money you actually need to spend to drive the car home, including the car price itself, vehicle purchase tax (a government tax), insurance (mandatory compulsory insurance for new cars and optional other insurance types), license plate fee (the cost of registering the car at the DMV), and possibly service fees or additional installation fees. Like me when I first bought a car, I didn’t understand this at first and almost ran out of budget by only looking at the sticker price—the out-the-door price ended up being 10,000 to 20,000 RMB more. Remember this to help you plan your budget properly; don’t just focus on the advertised price, or you might find yourself short on money when picking up the car, which can be troublesome. Especially when financing a new car, the out-the-door price is significantly higher than the sticker price and serves as a solid reference for actual expenses.
