9.2 Dealers Cost Warm Up 11/13 1) $38,306 + $380 + $715 + $565 = 2) $15,342 + $1,225 + $319 + $90 = 3). $39,966 $16,976 $ 25,184

9.2 Dealers Cost Have you ever been to a car dealership with someone purchasing a new car? Did the buyer offer less that the actual sticker price? What happened?

9.2 Dealers Cost Dealers pay less than the sticker price for both the basic vehicle and the options. Consumer magazines often report the DEALER COST as a percent of the sticke.r price Vocabulary

9.2 Dealers Cost Dealers costs are available if you are willing to spend the time and do the research. Once you know the dealers cost, you can figure out what an appropriate price is to pay. Remember dealer cost is a percentage of the sticker price, so you will need to make some calculations. The dealership will be willing to negotiate a price that will be less than the sticker price. Why is it important to be informed and to do your homework before purchasing a new car?

9.2 Dealers Cost Base Price x 95% $12,905 x.95 = Dealers Cost = Percent of Base Price + Percent of Options + Destination Charge $12, $1, $360 = Example 1 Carlos is shopping for a new family vehicle. He is pricing a minivan with all-wheel drive. The base price is listed at $12,905, options totaling $2,010, and a destination charge of $360. They read in a consumer magazine that the dealers cost for the car is about 95% of the base price, and 89% of the options price. What is the dealers estimated cost for the car? $ 14, $ 12, Options x 89% $2,010 x.89 = $ 1,788.90

9.2 Dealers Cost Base Price x 95% $24,080 x.92 = Dealers Cost = Percent of Base Price + Percent of Options + Destination Charge $22, $1, $520.00= Example 2 A convertible has a base price of $24,080 and options that total $1,645. The destination charge is $520. The dealers cost includes 100% of the destination charge, 92% of the base price and 85% of the options. What should they estimate the dealers cost? $ $ 22, Options x 89% $1,645 x.85= $ 1,398.25

9.2 Dealers Cost Complete the following on your own. The dealers cost on a SUV is 88% of the base price of $53,105, 90% of the options price of $1,785. and a destination charge of $340. What is the estimated cost to the dealer for the SUV? Base Price x 95% $53,105 x.88= Dealers Cost = Percent of Base Price + Percent of Options + Destination Charge $46, $1, $340= $ 48, $ 46, Options x 89% $1,785 x.90= $ 1, Concept Check

9.2 Dealers Cost Classwork assignment Page