Why There Is A Difference In Car Rates From State To State

Car market in India is growing at a tremendous rate. Because of high population of the country, car manufacturers find it a profitable place to launch new cars from time to time. The amount of cars on the road in India seems to be growing by the day. Today you can find a fleet of cars belonging to different segments in the market.
With so many cars plying on the road it is surprising to see that the car prices in India vary from one state to another. The basic factors that contribute to car prices in any state are ex-showroom price, ex-factory rate, and ex-road rate.
Ex-showroom rate is the price at which a car dealer sells a car, ex-factory price refers to the price at which a car manufacturer sells the car and ex-road refers to the rate at which the buyer drives away the car.
Since all these rates are different from one showroom to another in different rates that is why there is a difference in care price in India if you buy it from Delhi or Chandigarh. When the car dealer sells the car to you, he adds the ex-showroom price to the ex-factory price. He includes insurance, handling, road tax, logistic charges, etc in the amount he purchased the car from the factory. These prices and added components in the factory price of a car vary from state to state. For example: the road tax you pay in Delhi might be lesser than Chandigarh and therefore the car you buy from Delhi is priced lower than that you buy in Chandigarh.
Car insurance is a mandatory factor; it has been made compulsory for all foul wheelers. So the rate of car insurance differs from state to state. Different insurance companies provide different rates and types of insurance in different states. The kind of insurance you choose also determines how the car price you will get. These insurance policies are designed keeping different factors in mind. If you are choosing an insurance that covers damage to the car as well as the person driving it in case of an accident then it might prove expensive than the insurance that only covers the damages of the car.
Road tax is also different from one state to another. It is controlled by central or local government. If you are buying a new car then you will have to pay road tax on it according to the rate of your state. The reason for which the government charges road tax is to provide better control in the traffic. The tax imposed on your purchase is subjected to government rules, traffic regulation, and the condition roads in your state.
So when you are searching for car online make sure you also check car prices in your state because car prices in India differ from one state to another.