What does the term 'on-the-road price' mean for cars?
3 Answers
On-the-road price of a car = Ex-factory price + Vehicle purchase tax + Insurance premium [Commercial insurance + Compulsory traffic insurance] + Vehicle and vessel usage tax + Inspection and registration fees. The detailed breakdown is as follows: 1. Vehicle purchase tax = Ex-factory price ÷ (1 + 17%) × 10%; 2. Insurance premium = Commercial insurance + Compulsory traffic insurance (For family-use cars with fewer than 6 seats, the compulsory traffic insurance price is 950 yuan, and for 6 seats or more, it is 1100 yuan); 3. Vehicle and vessel usage tax = (For models with 1.0L-1.6L displacement, the annual tax is 300 yuan; for 1.6L-2.0L displacement, 360 yuan; for 2.0L-2.5L displacement, 720 yuan); 4. Inspection and registration fees are approximately 300-400 yuan, and if handled by a 4S shop, it may cost 600-1000 yuan.
When I bought a car last year, I finally understood what the on-the-road price means—it's definitely not just the sticker price of the car itself. The on-the-road price includes all the costs that actually get the car on the road, such as the ex-factory price (base price of the car), purchase tax (government tax), insurance (mandatory compulsory insurance and optional commercial insurance), license plate fees (cost for registration), and some additional charges like service fees or decoration fees from 4S stores. At the time, my budget was tight, and seeing an ex-factory price of 100,000 yuan but an on-the-road price of nearly 150,000 yuan almost gave me a shock. This shows that the on-the-road price is the all-inclusive cost after taking delivery of the car—you must clarify this number before buying to avoid overspending later. I also noticed some dealerships play word games, offering low quotes but high on-the-road prices. Comparing multiple dealers can save you money. The on-the-road price also includes some one-time expenses, meaning you won’t have to spend big again shortly after buying. Proper planning can save a lot of hassle.
I often help friends with car purchase advice. The on-road price is essentially the total cost of driving the car out of the dealership. It includes the base car price, mandatory national purchase tax, various insurance fees (both compulsory traffic insurance and commercial insurance are required), license plate and registration fees, as well as delivery service charges. For example, a car priced at 200,000 yuan might have an on-road price soaring to around 250,000 yuan, which is a significant difference. When buying a car, don’t just look at the ex-factory price; you must focus on the on-road price because that represents your actual expenditure. I recommend new car owners make a checklist in advance to calculate the costs—taxes and insurance are major components, especially since registration fees are cheaper in small cities but more expensive in big ones. The on-road price also includes initial maintenance costs, so understanding it helps avoid excessive loan repayment pressure and ensures a more comfortable budget.
