What is the On-the-Road Price When Buying a Car?
2 Answers
On-the-road price refers to the total cost of a car from the production line to the customer. Specifically, it includes the base price of the car plus additional expenses such as vehicle purchase tax, insurance, and license plate fees. It is also commonly referred to as the "drive-away price." Below are the detailed costs involved in purchasing a car: 1. Base Car Price: This is the selling price offered by the 4S dealership, typically after discounts, and excludes other fees. 2. Vehicle Purchase Tax: A mandatory fee when buying a car, approximately 8.55% of the base car price. 3. Car Insurance: Includes compulsory traffic insurance (mandatory) and commercial insurance (optional). 4. Vehicle and Vessel Usage Tax: A required tax at the time of purchase, which must be paid annually. 5. License Plate Fees: Covers service fees, administrative costs, and the license plate fee itself.
The total drive-away price is essentially the full amount you need to pay before driving your new car home. It includes the negotiated vehicle price, various taxes and fees such as the purchase tax (calculated based on the car price, typically around 10%), compulsory insurance and other insurance costs, as well as miscellaneous expenses like license plate registration fees. When I bought my first car, I had no idea about this—I only negotiated the car price and signed the contract, only to realize at payment that I had to pay several thousand more for taxes and insurance, almost exceeding my budget. Later, I understood that the drive-away price truly reflects the pressure on your wallet, not just the advertised discounts. I recommend that first-time buyers always ask the salesperson to provide a detailed breakdown of the drive-away price, listing all items and their total sum, to avoid unexpected add-ons and disputes later. Comparing the actual drive-away prices from several dealerships can also help you save money.
