What is the Difference Between the Ex-factory Price and the On-the-road Price of a Car?
3 Answers
There are several main differences between the ex-factory price and the on-the-road price of a car: Different Included Costs: The ex-factory price refers to the price of the car itself; the on-the-road price includes all costs associated with legally owning the car, such as insurance, taxes, and registration fees. Different Standards: 4S dealerships determine the ex-factory price based on the manufacturer's suggested retail price (MSRP); generally, the on-the-road price = ex-factory price + insurance + purchase tax + registration fees, etc. Different Influencing Factors: The ex-factory price is affected by various factors, such as the time of release and regional influences, while the on-the-road price is influenced by the ex-factory price.
When I first bought my car, I thought the ex-factory price was such a great deal that I assumed it was the all-inclusive price. But when I went to pick up the car, I was shocked by the additional costs like purchase tax, insurance, and license plate fees. The ex-factory price refers to the basic price of the vehicle itself, excluding any miscellaneous fees; the on-the-road price, however, is the total amount you end up spending, adding up all the expenses, such as the 10% purchase tax, thousands for commercial insurance, and license plate handling fees. That extra money directly impacts your wallet, so before buying, make sure to ask the dealer for the on-the-road price—don't just focus on the low price on the promotional flyer. After learning my lesson the hard way, I now always emphasize to friends when helping them choose a car that they need to calculate the total cost. Otherwise, they might exceed their budget by tens of thousands, especially right after getting a new car, when maintenance and fuel costs also need to be budgeted for.
Last time we were choosing a car for our child, we old couple were attracted by the ex-factory price, thinking it was quite a good deal. Little did we expect that when we calculated the on-the-road price, with purchase tax, full insurance, registration fees and all that added up, the expenses suddenly increased by a large margin. To put it bluntly, the ex-factory price is just the factory price of the car, not including any fees; the on-the-road price is the real cost of getting the car on the road, covering all necessary expenses. As the family accountant, I have to share this experience: before buying a car, don’t just focus on the ex-factory price, make sure to ask for the total price before placing an order, otherwise the money for the child’s school start might be delayed. The actual money saved can also be used for interior decoration to enhance driving comfort.
