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

Bike prices are usually quoted in two variations - ex-showroom price and on-road price. It might sound confusing to anyone who is planning to purchase a bike for the first time. However, it is very easy to differentiate between the two prices if you understand what they mean.

Difference Between Ex-Showroom and On Road Price


What is Ex-Showroom Price?

The ex-showroom price of a bike is the rate that dealers pay for the procurement of bikes from the original manufacturers. Generally, dealers also add the state tax, which they would have had to pay to the state government to this price. The state governments also charge excise duty on bikes. This price can also be referred to as the supply price of the bike. In certain states or cities, the ex-showroom price might also include octroi tax. With GST coming into effect, most dealers have to shell out a fixed percentage of the price to the state government, which is in turn has added to the ex-showroom price of the bike.

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What is On-Road Price?

On top of the ex-showroom price, the buyer has to pay certain charges like lifetime road tax, registration fees, insurance charges (which have to be renewed periodically) and logistics charges, as applicable. Briefly, the on-road price for a buyer is the final price that he has to pay in order to finally take the bike home!

These additional charges are mandatory because without them, you cannot complete the registration process. Registration gives an identity to your bike in the form of a unique number. The bike will also get tagged against your name in the vehicle registry. Insurance is also mandatory to avoid any future risks that might arise due to accidents, damages etc. Since the dealer has to bear the cost of getting the bike transported to you, he will also add handling or transportation costs to the on-road price.

Additional Read: Two Wheeler Loan Processing Fee

Which price do banks consider? Is it Ex-Showroom price or On Road Price?


Ex-showroom price is the sticker price of a bike that does not consider the cost of road tax, insurance and registering the bike. On the other hand, the on-road price includes the previously mentioned costs along with the cost of Insurance, RC and all the accessories a person will buy for his or her bike.

The ex-showroom price of a bike will also exclude costs of:

  • The tax collected at the source
  • Extended warranty
  • Annual maintenance package
  • Handling charges – this may or may not be added by the dealer.
  • Essential accessories
  • Green cess

Some private banks consider the ex-showroom price, while some government-owned banks choose to consider the on-road price. In the end, the decision depends and sometimes varies between lenders.

How to calculate the on-road price and Down payment of a bike?


Calculating the on-road price for a bike is easy. All one would need to do is use the online EMI calculator tool offered by leading lenders. One needs to input a few parameters in the EMI calculator tool, such as the down payment amount, the tenure period, and the interest rate.

Financing Your Bike

With various major credit providers like Bajaj Auto Finance, getting a loan for bike finance is not a difficult process. One might fear the high on-road prices of a bike, but with bike finance, you do not need to worry about arranging the entire amount at once. Not only can you own a bike by seeking a loan for it, but can also enjoy the benefits that come along with such loan options.

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Customise Your EMI

The monthly EMIs sound like a stressful way to pay back a loan. However, the introduction of flexi-EMI options is now making the life of loan seekers a lot simpler. The bike EMI calculator is a tool that allows you to calculate and design your own EMI schedule as per cash availability on a monthly basis. Once you punch in the basic details about your loan, like the tenure, preferred EMI amount, interest percentage etc., the calculator will show you how long it will take for you to repay the loan and other flexibility options, if available.

Additional Read: What is Loan Foreclosure?

Young bike lovers, who are at the start of their careers, find bike loans to be a convenient option to fund their vehicles. Bike loans are an easier choice, especially for those who have a cash crunch and still want to own the best bikes in the market.

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