The price in a brochure or advert is almost never the amount that leaves your bank account. Between that figure and the day you drive away sit taxes, registration, insurance and a handful of smaller charges. Together they make up the on-road price. This guide explains what it usually includes, why it differs between countries and cities, and how to avoid surprises.
Ex-factory, ex-showroom and on-road: what is the difference?
| 1 | Ex-factory price is the price set by the carmaker or its official distributor before local registration and related charges. Pakistan prices are usually quoted this way. |
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| 2 | Ex-showroom price is the dealer's selling price before registration, road tax and insurance. India prices are usually quoted this way. |
| 3 | On-road price is the total you pay to legally drive the car on public roads: the base price plus the government charges and paperwork needed for that. |
The exact split varies, but the principle is the same everywhere: the advertised price is the starting point, not the finish line.
What an on-road price usually includes
Names and rules differ, but most markets add some mix of the following:
| 1 | Registration: the government fee to register the car in your name and issue number plates. |
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| 2 | Road tax or annual vehicle tax: sometimes paid once, sometimes yearly, often linked to engine size, price or powertrain. |
| 3 | Advance or withholding tax: in some markets, collected at the time of purchase or registration. |
| 4 | Insurance: compulsory in many countries before registration, and often bundled by the dealer. |
| 5 | Freight or delivery: the cost of getting the car from the factory or port to your city, where not already included. |
| 6 | Documentation and handling: small fees for paperwork, number plates or toll tags. |
Worked example: Pakistan
Our Pakistan on-road cost calculator starts from the ex-factory price and adds city-based estimates. For the Honda City 1.2L CVT with Lahore selected, the estimate on 26 October 2026 looked like this:
| Line item | Estimate |
|---|---|
| Ex-factory price | PKR 4,737,000 |
| Registration (est.) | PKR 48,317 |
| Freight (est.) | PKR 71,055 |
| Withholding (est.) | PKR 23,685 |
| Token / docs | PKR 2,500 |
| Estimated on-road (Lahore) | PKR 4,882,557 |
That is roughly PKR 145,600, or about 3% on top of the ex-factory price, before insurance. The tool also flags an annual token tax estimate, which you will keep paying after the first year. Switch the city to Islamabad, Karachi or Rawalpindi and the papers change.
Worked example: India
The India on-road cost calculator starts from the ex-showroom price and applies a state-based fee schedule. For the Maruti Suzuki Dzire LXi Petrol Manual in Delhi:
| Line item | Estimate |
|---|---|
| Ex-showroom price | Rs 6,30,600 |
| Road tax (est.) | Rs 44,142 |
| Insurance (est.) | Rs 17,972 |
| Registration (RTO) | Rs 800 |
| FASTag | Rs 500 |
| Estimated on-road (Delhi) | Rs 6,94,014 |
Here the add-ons come to roughly 10% of the ex-showroom price, mainly because road tax and insurance are included. The comparison shows why you should never apply one country's rule of thumb to another.
Why on-road prices differ so much
| 1 | Country: each government sets its own taxes and registration rules. |
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| 2 | City, state or province: registration and road taxes are often set locally, so the same car can cost noticeably more in one city than another. |
| 3 | Price band and engine size: many taxes rise with the car's value or engine capacity. |
| 4 | Powertrain: some markets offer lower taxes or fees for hybrids or EVs, and those rules can change with each budget. |
| 5 | Buyer status: in some markets, tax rates differ depending on whether the buyer is a registered tax filer. |
| 6 | Dealer add-ons: accessories, extended warranties or "handling" charges are sometimes folded into a quoted on-road figure. |
What is usually not included
| 1 | Optional accessories such as floor mats, tints, dash cams or protection film. |
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| 2 | Extended warranties and prepaid service packages. |
| 3 | Financing costs. A loan adds interest and sometimes processing fees. Check the monthly figure with our EMI calculator (or the India EMI calculator). |
| 4 | Running costs: fuel or charging, servicing and tyres. |
Questions to ask the dealer
- Can I have a written, itemised on-road quotation with each charge listed separately?
- Which items are government charges and which are dealer charges?
- Is insurance included, and can I arrange my own?
- Are any accessories or packages bundled in, and can I remove them?
- Is the price fixed at booking, or is it the price on the delivery date?
- How long is this quotation valid?
The last two matter. If taxes or prices change between booking and delivery, the final invoice can differ from the first quote. Check our recent price changes page before you commit.
Bottom line
Treat the advertised price as the start of the calculation. Get an itemised quote, separate government charges from dealer extras, and compare it with an independent estimate. Run your shortlisted car through the CarVoltX on-road cost calculator before you visit the showroom, so you know roughly what a fair total looks like.
Estimates only. Final invoices depend on the dealer, taxes and local rules, which change. Figures above were checked on CarVoltX on 26 October 2026. See our pricing disclaimer and editorial policy.
