What does 'On the Road Price' Mean?

It’s an open secret that you need to consider a number of things before you buy a brand-new car. You should be patient and avoid being an impulsive buyer; take your time to compare the cars on your list.

Speaking of car buying, we received an inquiry through our Facebook page asking what "on the road price" means. Is this different from the prices shown in showrooms or in CARMUDI PHILIPPINES’ online listings? Before we answer the question, we first need to understand what does "on the road price" stands for.

"On the road price"is the total cost of everything you have to pay before you can rightfully claim vehicle ownership. Simply put, on the road price is the overall amount you need to pay when you purchase a vehicle. This may include delivery charge or optional car features that the dealer offers.

The delivery charge is when you opt to have your brand-new car delivered to your doorsteps. On the other hand, optional car features are not to be charged automatically once you purchase a vehicle. It's called optional for a reason--you can either choose to avail it or not. Some of the optional car features may include specialized floor mats, navigation feature, window tint, and so on.

On the road price may also include the amount you need to pay for registration fee and/or insurance. With that in mind, you should be aware that the standard retail price (or the showroom price) of a certain car may be different from the "on the road" price.

To make things clearer, think of the on the road price as the Value Added Tax (VAT) and the Service Charge, which are both added to your total bill whenever you eat in a restaurant. The best thing to do to avoid confusion is to communicate with your sales agent before you make the actual purchase. Enjoy your car shopping!