Buying a vehicle can be confusing. You must have noticed that sometimes prices can differ between what is advertised and what you pay. This gap is also noticeable when it comes to trucks, which are some of the most popular choices for both business and personal use in the country’s hilly terrain. Hence, it is important to understand the difference between on-road and ex-showroom prices and what each includes.
What is the ex-showroom price?
The ex-showroom or “base” price is the cost of the vehicle before adding government or dealer-added expenses. It is the price seen in brochures or advertisements. Suppose you buy a pickup truck. Its ex-showroom price will include the manufacturing cost, profit margin, and dealer commission. But it does not cover the many mandatory charges, such as taxes, that come with owning a vehicle in Nepal.
Simply put, the off-road price is the minimum amount required to purchase the truck from the manufacturer, but it does not include the final cost to drive it legally on the road.
What does the on-road price include?
The on-road price, on the other hand, is what you pay to drive your new vehicle. It includes a series of added expenses such as:
- Road tax and registration fees- These are different. Based on province, vehicle category and engine capacity.
- Insurance- Third-Party Insurance is mandatory. Most buyers also opt for comprehensive coverage.
- Number plate and documentation- Includes the cost of plates and paperwork.
- Dealer handling and delivery charges- Minor fees for vehicle inspection and transport to the dealership.
These can add a significant amount to the base cost, so the on-road price can be much higher than what is initially advertised.
Why the difference matters
In Nepal, this difference is important because there are high import duties and road taxes imposed on vehicles. Trucks are durable and versatile, but they fall into the higher tax brackets because of their size and commercial usage. Many times, buyers budget only for the base price and are surprised when the final price also includes these extra costs.
Moreover, registration and Insurance fees can also differ between Kathmandu, Pokhara, and rural areas (depending on local regulations and infrastructure). It is always smart to check the tax rates before making a purchase decision. For instance, if you check the Yodha DC on-road price in Nepal, it will reflect all these added costs, showing what you will spend.
Buyers should, therefore, ask for a detailed cost breakdown that separates the on-road components before finalising the purchase.
Conclusion
Understanding the difference between on-road and off-road prices helps buyers plan more effectively and avoid any last-minute surprises. When comparing vehicles, it is not enough to look at the ex-showroom price. You also need to factor in taxes, insurance, and delivery charges to see the complete financial picture.
Being aware of this ensures that what seems like a great deal on paper truly fits your budget once all the other costs are accounted for.
