For those of you planning to buy a vehicle, you’ve likely come across the term OTR price. This term often appears in vehicle price lists at dealerships or promotional brochures when searching for motorbike or car prices.
However, some people may feel confused about what OTR price actually means and why it varies across regions. This article will explain what OTR price is, how it differs from off the road price, and the factors that influence OTR prices in different areas. Let’s dive in!
What Is OTR Price (On the Road)?
OTR price refers to the total purchase cost of a vehicle that buyers must pay to obtain legal ownership in accordance with regional regulations. This price already includes all legalization fees, such as vehicle taxes, physical inspections, delivery, and other administrative requirements.
Once you understand the components of OTR price, it’s important to note that it can be divided into two categories based on the payment method: OTR cash and OTR credit.
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OTR cash means the full amount must be paid upfront when purchasing the vehicle.
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OTR credit means the payment is made through installments, usually with a price difference of around 20–30% compared to the cash option.
What Is the Difference from Off the Road Price?
Aside from on the road pricing, automotive manufacturers also generally offer off the road purchases. Unlike OTR price, which includes taxes and other essential documents, the off the road price only covers the vehicle unit itself.
This means you must handle the ownership documents on your own, such as STNK (Vehicle Registration Certificate) and BPKB (Proof of Ownership). To officially transfer ownership, you need to register the vehicle under your own name instead of the manufacturer’s. Once this process is completed, the vehicle becomes fully yours.
Factors That Cause OTR Price Differences
After understanding OTR price and how it differs from off the road price, it’s also important to know why OTR prices can vary across regions. Several factors contribute to this difference, including:
1. Service Bureau Fees
Agencies that handle vehicle administration documents, such as Samsat, Polri, and local revenue offices (Dispenda), have different tariff policies in each region. As a result, OTR prices are not uniform nationwide.
2. Vehicle Tax Fees
As explained earlier, taxes are one of the components included in OTR calculations. This is also the main reason OTR prices vary, since motor vehicle tax regulations differ between regions.
Generally, tax costs include Motor Vehicle Tax (PKB) and Motor Vehicle Title Transfer Fee (BBN-KB).
3. Vehicle Distribution Costs
Regions located far from manufacturers or dealerships typically face higher OTR prices. This is due to increased vehicle distribution expenses to those areas.
Therefore, distribution costs are one of the key factors affecting OTR price differences across regions.
How to Calculate OTR Price
As mentioned earlier, OTR price is influenced by multiple factors. It doesn’t only include the base cost of the vehicle but also covers various administrative and legal expenses. Here’s a breakdown:
1. General Market Price (HPU)
Before calculating OTR, you need to determine the General Market Price (HPU) of the vehicle.
This is regulated under the Ministry of Home Affairs Regulation (Permendagri) No. 6 of 2023, which sets the basis for calculating Motor Vehicle Tax (PKB), Motor Vehicle Title Transfer Fee (BBN-KB), and Heavy Equipment Tax.
HPU represents the average price of vehicles based on multiple verified data sources, officially recorded by the local Revenue Office (Dispenda).
2. Other Components
HPU is the base price you pay if purchasing off the road. However, if you choose OTR pricing, then several additional components are added, such as:
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Luxury Goods Sales Tax (PPnBM)
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Motor Vehicle Title Transfer Fee (BBN-KB)
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Value Added Tax (VAT/PPn)
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Mandatory Road Accident Fund Contribution (SWDKLLJ)
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Administrative fees for issuing vehicle documents
3. OTR Price Simulation
To calculate OTR, you need to refer to both HPU and Tax Base (DPP). The formula is as follows:
OTR Price = DPP + PPnBM + VAT (PPn) + BBN-KB + Document Issuance Fee + SWDKLLJ
The result must then be adjusted with other costs, such as distribution, marketing, and additional fees.
If you purchase the vehicle on credit, the calculation must also include interest rates as part of the total payment.
That’s the explanation of OTR price, its components, and how to calculate it. Understanding this is crucial before deciding to purchase a vehicle.
Once you know the full breakdown of costs, it’s time to start planning your budget carefully. If you need extra funds to purchase your dream vehicle, BFI Finance is ready to support you with safe and trusted financing services.
With collateral such as Motorcycle BPKB, Car BPKB, or House/Shop/Commercial Property Certificates, you can get additional funds with a fast process and competitive interest rates. Interestingly, BFI Finance also offers Fast Car Loan services that accommodate financing for all brands of used cars.
As a company with over 40 years of experience in the financing industry, BFI Finance guarantees safety and trust in every loan process. This is backed by the fact that BFI Finance is officially licensed and supervised by the Financial Services Authority (OJK).
This commitment proves that every service provided by BFI Finance is carried out professionally, transparently, and in accordance with legal standards. So, make your dream vehicle a reality because #SelaluAdaJalan with BFI Finance.
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