25 May 2023
The on-road price refers to the total cost a buyer pays to own a vehicle, including the ex-showroom price of the vehicle, taxes, registration fees, insurance, and any additional charges. It represents the final price a buyer needs to pay to drive the vehicle legally on the road.
Understanding the on-road price is crucial for car buyers and car finance borrowers as it provides a comprehensive view of the total cost involved in purchasing a vehicle. By considering the on-road price, borrowers can accurately assess the affordability of the vehicle and plan their finances accordingly. Additionally, when seeking car finance, borrowers may need to factor in the on-road price to determine the loan amount they require.
Suppose a car buyer is interested in purchasing a car with an ex-showroom price of £20,000. In addition to the ex-showroom price, they need to consider taxes, registration fees, insurance, and other charges. After accounting for these additional costs, the on-road price of the vehicle may be £22,000. When applying for car finance, the borrower may seek a loan for the on-road price, considering their down payment or deposit, to cover the total cost of the vehicle and associated expenses.
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