Date: May 12, 2013
Looking for buying New Car. However, getting buoyed down by unique terms like Dealer Handling Charges, Octroi, Ex-showroom and On Road Price
Ex Factory Price of Car : This is what the Manufacturer Price of the Car including there applicable margin and taxes paid. Ex Factory Price is what is applicable for Car Dealer to pay to Manufacturer to lift the car from them.
Ex-Factory Price Terminology is very less been told or appraised to customer and rather is between the Manufacturer, Dealer and the Bank Whole Sale Funding Team who provides Inventory Funding to Dealers
Ex Showroom Price of Car : Ex-showroom Price of Car is the Price of Car for Retail Customers including Dealer Margins, Transportation costs and applicable Excise, State Taxes and Octroi Charges.
Ex-showroom Price is called the basic price of the asset exclusive of any registration, insurance or loadings.
On Road Price : Includes State Registration Charges, One Life Time Road Tax Payment, Mandatory Insurance and the dubious dealer handling charges (aka Logistics Charges). Also, optionally will include Accessories cost, additional optional warranty coverage. The discounts if any will also be shown and reduced while calculating the Net On Road Price
On Road Price is the final Price payable by the customer to the car dealer and is also known as Invoice Value of the car
Dealer Handling Charges : Dealer claims handling charges in name of taking car from stockyard to showroom cost, basic fuel, stock maintenance, cleaning of car and as delivery charges.
The amount is quiet high and ranges from Rs. 6000 for a hatchback car to upto Rs. 25,000 for Luxury Segment Cars. The Amount is much dubious considering the high price paid for. However, the charges are not claimed by dealers in India, but across most of the countries in the world as Handling Fees, Documentary Fees or even Vehicle Preparation Fees
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