SECTION 9-3 Purchasing a Used Vehicle pp. 320-322

( $10249 X .935 ) + ($910 X .77) + $495= $10,778.52 WARM UP--- Solve: Review 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? ( $10249 X .935 ) + ($910 X .77) + $495= $10,778.52 Journal: You work in a clothing store at the mall and receive a 10% commission on all sales. One of your co-workers has a child that requires ongoing medical treatment. The other sales associates often allow him to assist customers who usually spend a lot so that he can earn extra commissions. You feel sorry for your co-worker; however, you are working to have spending money for all the expenses of your senior year in high school. Explain how you would handle the situation. Today’s Quote: If what’s in your dreams wasn’t already real inside you, you couldn’t even dream it. – Gloria Steinem

H-work 9-1/2

Who said buying a car was easy??? New versus used Lease versus purchase Payments versus paid in full Comprehensive insurance versus collision only insurance Costs associated with owning a vehicle

Foreign or Domestic?? Many cars are manufactured in countries overseas. Some have a higher gas mileage, so are considered more economical. Some “wear well” and keep their value better. The price and availability of repair parts may make these cars more costly to repair and insure.

Keep in mind the price can be negotiable… Will someone share their car buying experience? How was the price determined?

Did you know… Most states have laws in place that protect consumers from buying newly manufactured automobiles with defects that can’t be corrected despite numerous attempts by the car dealer or manufacturer. These types of cars are called “lemons”, and lemon laws provide consumers with the right to have the manufacturer either replace or buy back defective automobiles.

Odometer reading…. Mileage traveled, or the odometer reading affects a car’s value. When you buy a used car, the seller is required by law to provide you with an odometer disclosure statement.

Why is it smart to do research on a car before buying it? Knowledge is power. Research can help a consumer understand how well a car is made, any problems other owners have had with the same model, and the fairest possible purchase price.

Section Objective Figure out: average retail price of a used vehicle

Key Words to Know used-vehicle guide (p. 320) Guides published monthly that give the average prices for vehicles that were purchased from dealers during the previous month.

Formula How do I find the average retail price of a used car? Average Retail Value + Additional Options – Options Deductions – Mileage Deduction ____________________ Average Retail Price

Example 1 Jackie Morris would like to purchase a used Palamino V8 four-door car, which is advertised for $15,450. It has power seats, premium sound system, leather seats, and a power sunroof. The vehicle has no air conditioning. It has been driven 51,760 miles.

Example 1 (cont.) The used-vehicle guide indicates that $575 should be subtracted if the mileage is from 45,001 to 52,500 miles. What average price should Morris keep in mind when she makes an offer for the vehicle? (See Figure 9.2 below.)

Figure 9.2

Example 1 Answer Step: Find the average retail price. Average + Additional – Options – Mileage Retail Options Deductions Deductions Value $14,675 + ($125 + 200 + 340 + 450) – $800 - $575 = $14,415

Ticket out Sports utility vehicle. Base price: $26,630. Options: power sunroof $704; supplemental side airbags $431; security alarm $132. Destination charge: $625. What is the sticker price?

Ticket Out Answer $28,522

END OF SECTION 9-3 Purchasing a Used Vehicle