CarBike
🧾 Finance & Insurance 2 min read • Updated 25 Sep 2026

Understanding On-Road Price: What Makes Up the Number on Your Quote

Ex-showroom, road tax, insurance, handling, accessories — a line-by-line explanation so nothing on the quote surprises you.

In this guide
  1. Ex-showroom price
  2. Road tax and registration
  3. Insurance
  4. Other charges you may see
  5. How to use this

Two dealers can quote very different "on-road prices" for the same vehicle. Knowing what each line means helps you compare quotes fairly and spot charges worth negotiating.

Ex-showroom price

The vehicle's price at the dealership, including taxes charged at that stage, but before registration, road tax and insurance.

Road tax and registration

Charged by the state transport authority. The rate and the way it is calculated differ by state, vehicle type, fuel type and price band. Ask the dealer for the exact figure for your state and verify it against your state's transport department.

Insurance

A comprehensive policy is needed when you buy. Premiums depend on the vehicle's value, engine size and add-ons. You are usually free to buy insurance from any insurer — compare quotes rather than accepting the dealer's default.

Other charges you may see

  • Handling / logistics / documentation charges — ask what they cover and whether they are negotiable.
  • FASTag — for cars, a small refundable deposit and recharge.
  • Accessories and packages — mats, seat covers, coatings. These are optional; compare prices outside the dealership.
  • Extended warranty and service packages — optional; read the exclusions before agreeing.
  • TCS / other statutory collections — depending on the vehicle price and prevailing rules.

How to use this

  1. Estimate the on-road price yourself using the on-road price estimator in our Buying Guide.
  2. Ask each dealer for a written, itemised quote.
  3. Compare line by line and negotiate on the parts that are flexible — discounts, accessories, insurance and extras.

Always confirm the final figures with the dealer before you pay a booking amount, and get everything in writing.

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