1. SECTION
9-2
Dealer’s Cost pp

2. 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.

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

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

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

6. Example 1
The Hillbillies 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?

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

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

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

10. 318:1-11