1. What’s Included in the On-the-Road Price?
The on-the-road price covers all costs required to legally drive your new car home:
Base Vehicle Price
The car’s sticker price, negotiable via discounts or promotions.
Purchase Tax
Formula: Base Price ÷ 11.3 (10% for gas cars in China; EVs currently exempt).
Insurance
Mandatory: Traffic Compulsory Insurance + Commercial Insurance (e.g., collision/third-party liability).
Registration Fee
Dealer charge: ¥500–3,000 | DIY: ~¥200.
Miscellaneous Fees
Finance service fees, accessories, etc. (Some negotiable).
Example Calculation:
Base Price (¥200,000) + Tax (¥17,699) + Insurance (¥6,000) + Registration (¥1,000) = ¥224,699.
2. Loan Options Compared
| Type | Interest Rate | Pros | Cons |
|---|---|---|---|
| Bank Loan | 3%–6% APR | Low rates, no strings | Requires good credit |
| Manufacturer Financing | 0%–1.99% APR | Low/zero interest | May mandate full insurance |
| Finance Company | 6%–10% APR | Fast approval | Costly for poor credit |
Example:
Loan Amount: ¥150,000 | Term: 3 years (36 months) | Rate: 5%.
Monthly Payment: ¥4,499 (Total Interest: ¥11,964).
3. Money-Saving Tips
Negotiate the Base Price
Compare multiple dealers; leverage competitor quotes.
Opt for 0% Interest Deals
Prioritize manufacturer-backed promotions.
Buy Insurance Independently
Avoid dealer markups (often 10%–20% higher).
Challenge Unnecessary Fees
Reject "delivery" or "inspection" fees (often arbitrary).
Key Formula:
On-the-Road Price = Base Price + Tax + Insurance + Registration + Fees
Pro Tip:
Use online calculators (e.g., Autohome, Edmunds) to estimate costs upfront. Always compare loan terms and negotiate aggressively!
Why This Matters:
A ¥200,000 car could cost ¥225k–¥240k after fees.
Choosing a 5% vs. 8% loan saves ¥9,000 over 3 years.
Final Advice:
For low rates: Banks or manufacturer financing.
For flexibility: Pay upfront to avoid interest.
Always read the fine print! Dealer "discounts" may hide higher fees.
