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Difference Between Ex-Showroom and On Road Price of a Bike

Prices for motorcycles are typically stated in two ways: ex-showroom and on-road pricing. Anyone looking to buy a bike for the first time could find it confusing. However, if you know what the two pricing mean, it’s pretty simple to tell them apart. 

What is Ex-Showroom Price of Bike?

The price dealers pay for purchasing bikes from the original manufacturers is known as the ex-showroom price. Dealers typically include in this pricing the state tax they would have been required to pay to the state government. The state governments also levy bike excise taxes. The supply price of the bike is another name for this cost.

The ex-showroom price may also include octroi tax in some states or towns. Since the implementation of GST, most dealers have had to pay the state government a specified percentage of the price, which has increased the bike’s ex-showroom price. 

What is On-Road Price of Bike?

The purchaser must pay additional expenses such as logistical fees, lifetime road tax, registration fees, insurance fees (which must be renewed regularly), and other charges in addition to the ex-showroom price. Simply put, a customer must pay the on-road price before he can finally take the bike home.

You must pay these additional fees to finish the registration procedure. Thus they are necessary. Your bike gains a distinct identity through registration in the form of a number. Additionally, what will register the bike in the vehicle registry under your name? Insurance is also required to reduce any potential risks brought on by accidents, damage, etc. The dealer will also tack on handling or transportation fees to the on-road pricing since he must cover the expense of getting the bike delivered to you.

Ex-Showroom Price Vs. On-Road Price of a Bike

The sticker price of a bike, known as the ex-showroom price, does not include the costs of road tax, insurance, or registering the motorcycle. As opposed to this, the on-road price also consists of the cost of insurance, remote control, and all of the extras a customer will purchase for their bike.

While some government-owned banks opt to evaluate the on-road price, several private banks consider the ex-showroom price. In the end, the choice is subjective and occasionally varies between lenders. 

1. Registration Charges

If you wish to operate your vehicle on public roads, you must comply with Indian legislation and register that type of vehicle. A bike you purchase must be registered with the neighbourhood Regional Transport Office (RTO). Most of the time, the bike dealer takes care of this for you and adds the expense to the on-road price.

By examining the number plate, one can determine the state and RTO where the bike is registered because it contains the State Code (alphabetic code) and the RTO/Area Code (numerical code). The bike registration cost might vary from state to state in India. Additionally, you will need to pay more if you want a unique or beautiful registration number.

Read More:
RTO Rules For Electric Scooters and Electric Bike in India

2. Road Tax

Simply put, it is the bike owner’s fee to ride on Indian highways. This type of tax is computed using a certain percentage and is applied to the vehicle’s Ex-showroom Price. It often falls between 3% and 20%. This payment is good for ten to fifteen years.

3. Tax Collected at Source

As tax is collected at the source, the dealership levies a fee equal to 1% of the vehicle’s ex-showroom price (TCS).

4. Green Cess

This sum is based on the Ex-showroom Price as well. Depending on the dominant government policy, the precise percentage may change.

5. Extended Warranty

The majority of brand-new bike have a warranty period. This is your warranty from the manufacturer. It is constrained by the amount of time or the distance travelled. For instance, the warranty may last for a year or the amount of miles the bike has been driven. 

By paying extra, you can choose to extend this guarantee. The vehicle’s on-road price will include this expense. The vehicle’s resale value may benefit from such an extension as well. A pre-owned bike that comes with a warranty is worth more than one that doesn’t.

6. Annual Maintenance Package

Your bike dealer might present you with an annual maintenance package that includes services like roadside assistance, vehicle cleaning, polishing, and servicing. Make sure you have double coverage since if your insurance plan includes roadside assistance, you don’t need to buy it from the dealer. 

Examine the package’s specifics, contrast them with the plans of other service centers, and make your choice. This package is optional. The two-wheeler On-road Price will rise if you follow the dealer’s recommendation. 

7. Handling Charges

Most of the time, the dealer’s margin includes the costs associated with moving the bike from the production to the dealer. You can speak with the dealer personally if you need the vehicle delivered somewhere.

8. Essential Accessories

Typically, it becomes necessary when most vehicle users begin using a particular accessory. Floor mats, seat covers, and other items can be considered essential auto accessories. You might purchase them from the auto dealer or any different store for an additional fee. The vehicle’s on-road price will change if you buy from the dealer.

9. Extra Accessories

The contemporary helmet and eye-catching biker jacket displayed in the bike dealer’s showroom may appeal to you. What can purchase these additional accessories at a premium? You might desire a superior entertainment system for a bike. All of this will be extra money.

10. Insurance

The Motor Vehicles Act mandates that vehicle insurance be carried out. Using an uninsured bike on a public road can result in severe fines. While auto insurance is required, you have an option in terms of the insurance plan.

Either a Third-party Policy or a Comprehensive Policy is available for purchase. The latter’s “Own Damage” cover is what distinguishes the two in terms of their fundamental differences. Your bike is insured under the “Own Damage” insurance, which also provides Third-party coverage, which is required.

Ex-Showroom and On-Road Price of a Bike

Bike dealers and insurance companies frequently work together. Verify the coverage and get the insurance that meets your needs. You have the option of selecting a different plan or insurer.

Ex-showroom Price

On-road Price

Before considering the cost of vehicle registration, insurance, and road tax, this is the cost of the vehicle. Essentially, this is the cost of the bike after road tax, insurance, and the vehicle registration fee have been taken into account. Other expenses, such as those expended for the bike accessories, may also be included.
The Ex-showroom Price of a vehicle is cheaper than the On-road Price. The On-road Price of a bike is more expensive than the Ex-showroom Price since it includes several extra components. (These elements are described in detail in the section below.)
Former Showroom: A bike price is not the cost of buying it. A vehicle’s final purchasing price is its On-road Price.


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