🚗 How to Calculate On-Road Price of a Car in India – 2025 Guide

Buying a car? You’ve probably seen the ex-showroom price in ads — but that’s not the final price you’ll pay. The actual cost you need to budget for is the on-road price.

Let’s understand what it includes and how to calculate on-road price step-by-step.

✅ What Is On-Road Price?

The on-road price is the total amount you pay to drive the car out of the dealership. It includes:

  • Ex-showroom price

  • RTO charges (road tax & registration)

  • Insurance (mandatory)

  • Handling charges

  • Optional accessories

  • FASTag, extended warranty, etc.

🧮 How to Calculate On-Road Price – Step-by-Step

Let’s break it down with a sample:

🔹 1. Ex-Showroom Price

This is the base price of the car set by the manufacturer (excludes taxes & registration).
Example: ₹8,00,000

🔹 2. RTO Charges (Registration + Road Tax)

This varies by state and car type. Usually:

  • 6% to 18% of ex-showroom price

  • Higher for expensive or commercial vehicles

Example (10%): ₹80,000

🔹 3. Insurance Cost

Mandatory to drive on Indian roads. Typically includes:

  • Third-party cover (basic)

  • Comprehensive (recommended)

Example: ₹35,000 for 1st year comprehensive insurance

🔹 4. Logistics & Handling Charges

Dealer may charge for vehicle transportation, number plate, etc.
Typical Range: ₹5,000 – ₹10,000
Example: ₹7,000

🔹 5. Optional Add-Ons

Not mandatory, but commonly offered:

  • Extended Warranty: ₹10,000 – ₹20,000

  • Accessories Pack: ₹5,000 – ₹50,000

  • FASTag: ₹500 approx

Example (total): ₹15,000

 

📊 Sample On-Road Price Calculation

📌 Things to Keep in Mind

  • On-road price varies by state and city

  • You can negotiate add-ons and handling charges

  • Check for discounts, corporate offers, or exchange bonuses

  • Always compare insurance quotes (you can buy from outside)

🔄 Related FAQs

Q1. Is on-road price negotiable?
➡️ Only partly. Ex-showroom is fixed, but dealers may reduce handling charges or offer discounts on accessories.

Q2. Can I avoid buying insurance from the dealer?
➡️ Yes. You can buy it separately online and give the proof to the dealer.

Q3. Why is on-road price higher in some states?
➡️ Because of different RTO tax slabs and registration costs.

 

🔚 Final Thoughts

Before finalizing your car, don’t just look at the brochure price. Always calculate the on-road price and compare it across dealers. It’s the real cost of owning a car, and understanding it can help you save thousands.