What does the total purchase price of a car mean?
3 Answers
The total purchase price of a car refers to the sum of the car's base price, vehicle purchase tax, insurance, usage tax, and license plate fees. Here are detailed explanations of some of the items: Base price: Generally, the total purchase price of a car is based on the base price. After purchasing a car at the base price, consumers can then pay for the purchase tax, various insurances, vehicle inspection, license plate fees, and other expenses. Vehicle purchase tax: Vehicle purchase tax is a tax levied on units and individuals who purchase specified vehicles within the country. Currently, the vehicle purchase tax rate is 10%. Car insurance: This refers to motor vehicle insurance, which is a type of commercial insurance that compensates for personal injuries, deaths, or property losses caused by natural disasters or accidents involving motor vehicles.
When I first bought a car, I was also confused about what the on-the-road price meant. After going through the process, I learned that it's the total cost you pay to drive the car home after settling all payments. It's not just the price of the car itself, but also includes additional expenses like VAT, commercial insurance, compulsory insurance, registration fees, and inspection fees. Like that time I bought a car, the ex-factory price was advertised as super low at just 150,000 yuan, but after adding nearly 18,000 yuan in taxes and several thousand in insurance, the on-the-road price soared close to 180,000 yuan, exceeding my budget. So before buying a car, always ask the 4S store directly for this total price to avoid being misled by advertising gimmicks. This method helps you control real expenses and prevents price hikes; I've also calculated that taxes and fees generally account for about 10%, depending on the region and car model, which you can estimate in advance by checking online. Overall, the on-the-road price is the all-inclusive cost covering all steps, essential knowledge for car buyers.
Regarding the on-the-road price of a car, I understand it as the total amount ultimately paid. It includes the ex-factory price, purchase tax—typically 10% of the car's price, mandatory traffic compulsory insurance, optional commercial insurance items, miscellaneous fees like license plate registration, etc. 4S stores often advertise the ex-factory price as bait, but when you factor in these additional costs, the on-the-road price can be significantly higher. It's advisable to focus directly on the on-the-road price during negotiations, not just haggling over the ex-factory price. Calculating the on-the-road price helps you see through hidden costs and avoid unnecessary expenses; experience tells me that preparing your budget in advance leads to more substantial overall savings.
