Road Tax

When you are thinking about purchasing a new car, what factors do you consider most important? Is it the ex-showroom price, features, or the road tax? Road tax is one of the key components in the final price of your car that you pay to the government. While car prices vary, road tax differs from state to state and can make a significant difference in your car-buying budget.

For example, road tax can be a large addition to the overall cost of your new car. The higher the road tax, the more you need to plan for the total price of your car. But what if you could find a way to make this cost more affordable?

This is where Bajaj Finserv New Car Loans can be your solution. Our new car loans can cover up to 100% of your new car's on-road price, including road tax. And here is the best part – you might already be pre-approved for our new car loan. Check your offer and get closer to driving home your new car.

Read on to know more about how road tax impacts your car price and how our new car loans can help you in covering these expenses.

What is road tax?

Road tax is a mandatory fee that car owners must pay for using public roads. It is collected by the respective state governments to help maintain and improve the country’s road infrastructure. While road tax is similar across the country, it varies significantly from state to state, which can have a considerable impact on the overall price of the vehicle you are buying.

Have you considered how road tax will affect the total cost of your new car? When purchasing a new car, it is essential to factor in this tax along with the car’s price. Understanding how road tax works will help you plan your budget better and avoid unexpected expenses.

How is road tax calculated?

How is road tax calculated? Road tax is based on various factors, such as the vehicle’s price, engine capacity, weight, age, and its intended use (personal or commercial). For instance, heavier vehicles generally incur higher tax rates, while older vehicles may have different tax rates due to their emissions and environmental effects.

Other factors, including the vehicle’s seating capacity, engine size, and overall dimensions (length and width), also influence the tax calculation. Larger vehicles, such as SUVs and trucks, typically face higher road taxes. The fuel type is another important factor, with eco-friendly vehicles often benefiting from lower tax rates.

For instance, if you purchase a new car with an engine capacity of 1,500 cc and the car costs Rs. 10 lakh, the road tax could range from 7% to 9% of the car’s price. This would mean paying between Rs. 70,000 and Rs. 90,000 as road tax alone.

Does that seem like a lot? The additional tax can sometimes be unexpected. However, you can finance the entire cost of the car, including the road tax, through an easy car loan. Curious about how much you can borrow with a Bajaj Finserv New Car Loan to cover these extra costs? With just a few clicks, you can quickly check the loan amount you qualify for. Calculate your new car loan eligibility today and take the first step towards your new car.

Road tax for new cars

When purchasing a new car, road tax can be a considerable part of the overall cost. New vehicles are subject to road tax, which is determined by several factors, including the engine capacity, type of car, and its price. For example, smaller cars usually have lower tax rates, while larger vehicles, such as SUVs, are subject to higher taxes.

If you are thinking about buying a new car, it’s important to check the road tax amount before you finalise your purchase. This way, you won’t be caught off guard by unexpected costs after the deal is made. Instead, plan ahead and explore financing options that can help cover all these additional expenses.

The road tax for new private four-wheelers is typically based on the vehicle’s cost. Here is a general breakdown of the tax rates in New Delhi:

Ex-showroom price	Rate of tax
Up to Rs. 6 Lakh	Petrol Cars - 4%, Diesel Cars - 5%
Rs. 6 to 10 Lakh	Petrol Cars - 7%, Diesel Cars - 8.75%
Above Rs. 10 Lakh	Petrol Cars - 10%, Diesel Cars - 12.5%

How to pay road tax online?

Paying road tax is now easier than ever. Many states offer online payment options, allowing you to settle your dues without having to visit an office. Here is how you can do it:

Visit the official e-Vahan website https://parivahan.gov.in and enter your vehicle details.

Navigate to the 'Online Services' section and select ‘Pay Vehicle Tax’.

Enter your vehicle registration number and other required details.

The portal will display your vehicle’s information and any outstanding tax dues.

Proceed with the payment using a debit card, credit card, or net banking option.

After successful payment, you will receive an electronic receipt for your records.

This online process ensures that you can conveniently pay your road tax from the comfort of your home.

Road tax plays a significant role in determining the final cost of your new car. While it might seem like a substantial expense, with the right financial planning, it doesn’t have to be a burden. Bajaj Finserv New Car Loans can help by covering up to 100% of your car’s on-road price. Check your pre-approved offer now and choose the car that fits your budget and needs.

Ready to move forward? Look into the road tax and other factors that impact the price of your new vehicle. If you need financial support, explore Bajaj Finserv New Car Loan options today to help make your purchase easier.