1. Lesson 9.2
Dealer’s Cost

2. 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

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

4. = 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

5. 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

6. 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 =

7. = 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
= x
0.93
Percent of the
Base Price
= $34,

8. = 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

9. 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,
+ $2,707.25
+ $870
Does this answer
the question?
Dealer’s =
Cost
$38,103.50

10. 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, $ 650
$38,753.50

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

12. Any questions?