Lesson 9.2 Dealer’s Cost

Why do you pay more than the dealer when you buy a car? Make profit on car Make profit on options Pay commission Pay destination charge Pay operating costs

Do you have to pay the sticker price? NO!!!!! You can save $ by making an offer What are some services you can use?

= Total Price of Options x Formulas you will need Percent of the Base Price Percent of Dealer’s Cost of Base Price = Base Price x Percent of the Options Price Percent of Dealer’s Cost on Options = Total Price of Options x Dealer’s = Cost Percent of the + Base Price Percent of the + Options Price Destination Charge

Jordan West is considering the purchase of a station wagon Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? You will first need to find: The sticker price The percent of base price The percent of options price The estimated dealer’s price

Jordan West is considering the purchase of a station wagon Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? The sticker price $40,970 37125 + 2975 + 870 =

= 37125 x 0.93 = $34, 526.25 = Base Price x The percent of base price Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? The percent of base price Percent of the Base Price Percent of Dealer’s Cost of Base Price = Base Price x Percent of the Base Price = 37125 x 0.93 Percent of the Base Price = $34, 526.25

= Total Price of Options x Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? The percent of options price Percent of the Options Price Percent of Dealer’s Cost on Options = Total Price of Options x Percent of the Options Price = 2975x 0.91 Percent of the Options Price = $2,707.25

Does this answer $38,103.50 the question? Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? The estimated dealer’s price (cost) Dealer’s = Cost Percent of the + Base Price Percent of the + Options Price Destination Charge Dealer’s = Cost $34, 526.25 + $2,707.25 + $870 Does this answer the question? Dealer’s = Cost $38,103.50

What do we still need to do with $38,103.50? Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? What do we still need to do with $38,103.50? $38,103.50 + $ 650 $38,753.50

What would he do if he was to offer $200 below the deal’s cost? Dealer’s = Cost $38,103.50 $38,103.50 - $ 200 $37,903.50

Any questions?