SECTION 9-2 pp. 317-319 Dealer’s Cost

Section Objective Calculate: dealer’s cost of a new vehicle

Key Words to Know dealer’s cost (p. 317) The price actually paid for a vehicle by a dealer, usually expressed as a percent, which is less than the sticker price and can be negotiated.

Formula 1 Percent of Base Price Percent of Options Price + Destination Charge ___________________________________ Dealer’s Cost

Formula 2 Base Price × Percent of Dealer’s Cost on Base Price ___________________________________ Percent of Base Price

Formula 3 Total Price of Options × Percent of Dealer’s Cost on Options ___________________________________ Percent of the Options Price

A Hard One to Pick p. 317 Once Gomez has the dealer’s costs, what can she figure out?

Example 1 The Wengs want to purchase a new car. The car has a base price of $12,905, options totaling $2,010, and a destination charge of $360. The dealer’s cost for the car is 95 percent of the base price and 89 percent of the options price. What should they estimate as the dealer’s cost?

Example 1 Answer: Step 1 Find the percent of base price. $12,905.00 × 95% = $12,259.75

Example 1 Answer: Step 2 Find the percent of options price. $2,010.00 × 89% = $1,788.90

Example 1 Answer: Step 3 Find the dealer’s cost. Percent of + Percent of + Destination Base Price Options Price Charge $12,259.75 + $1,788.90 + $360.00 = $14,408.65

Practice 1 A hatchback’s base price is $10,249. The options total $910. The destination charge is $495. Dealer pays about 93.5 percent of base price and 77 percent of options. What is the dealer’s cost?

Practice 1 Answer $10,778.52

Practice 2 A convertible’s base price is $25,495. The options total $800. The destination charge is $485. Dealer pays 90 percent of base price and 86 percent of options. What is the dealer’s cost?

Practice 2 Answer $24,118.50

END OF SECTION 9-2 Dealer’s Cost