Difference Between Ex-Showroom And On Road Price Of A Bike
Last Modified: 7-June-2023
Buying a bike requires precise knowledge of the pricing structure. Bikes generally have two price variations – on-road and ex-showroom prices.
Understanding the basic difference between ex showroom and on-road prices is necessary. The ex-showroom price is at which a bike is sold by the manufacturer to the dealer. And the on-road price is the final price the customer pays, including the ex-showroom price. The bike’s on-road price includes additional costs, such as road tax, registration charges, insurance, and other applicable taxes or fees.
What is Ex-Showroom Price?
You might be wondering, “what is the ex-showroom price?”. The ex-showroom price is usually the bike’s price acquired from the original manufacturers. It is the price at which the manufacturer sells the bike to the dealer. In this, no additional costs such as taxes, registration fees, and insurance are added. This price is typically listed on the manufacturer’s website or in promotional materials. Sellers often use this price as a starting point for negotiation with the dealer. It is important to note that the ex-showroom price is not the final price you are paying as a customer.
What is On-Road Price?
Bike’s on-road price is what the customer pays to the seller. It includes the ex-showroom price and additional charges such as lifetime road tax, registration fees, insurance charges, and logistics charges. These charges are mandatory in order to complete the registration process. For the purchase, you need to provide legal identification proof. And while purchasing a bike, you need to ensure that the vehicle is properly insured. After all that, you need to pay the on-road price and take the bike home.
Additional Read: Impact of GST on Two-wheelers and Bikes in India
Which Price Loan Providers Consider? Is it ex-showroom price or on-road Price?
Ex-showroom price is the amount of the bike that does not include the taxes, insurance, and registration. On the other hand, on-road price is the cost of the bike that includes all the costs incurred, such as accessories, insurance, extended warranty, annual maintenance, etc.
The price loan providers consider may vary, based on the lender and loan terms. Some may consider the ex-showroom price, while others may consider the on-road price, which includes additional costs such as road tax, insurance, registration fees, and any added accessories or services. It is best to check with the specific provider to know which price they are considering. Muthoot Capital Services Ltd. provides a two-wheeler loan to customers for 100% on-road price. And it is beneficial for the borrower as all the charges are included in the bike’s on-road price and the loan is financed the same.
How to calculate the down payment of a bike loan?
Two wheeler loan EMI calculator is the best way to calculate the EMIs of the loan. And when you get the idea of the same, you can know how much you’ll need for the bike’s down payment. To use the tool, enter a few details, such as the loan amount, repayment tenure and interest rate. Check out the benefits of using the two wheeler loan calculator –
1. Financing Your Bike Becomes Easy
Bike finance via a two-wheeler loan is a popular option for many people looking to purchase a bike. Many major credit providers, such as Muthoot Capital, offer loan options for bike finance, making it relatively easy for individuals to own a bike without having to pay the full cost upfront. Additionally, these loan options often come with added benefits and flexible repayment terms. You can consider taking the two wheeler loan from Muthoot Capital at very competitive interest rates and flexible EMIs.
2. Customise Your EMI
Flexi-EMI options are a great way to finance your new bike. It allows borrowers to adjust their monthly loan repayment schedule based on their cash flow, making it more manageable and less stressful. The two wheeler loan EMI calculator is a useful tool that can help borrowers determine the most suitable EMI schedule for their loan. By inputting details such as the loan amount, interest rate, and loan tenure, the calculator can estimate the monthly EMI and the total interest to be paid over the loan period.
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