1. SECTION 9-2 pp
Dealer’s Cost

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

3. 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.

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

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

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

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

8. 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?

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

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

11. 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

12. 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?

13. Practice 1 Answer
$10,778.52

14. 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?

15. Practice 2 Answer
$24,118.50

16. END OF SECTION 9-2
Dealer’s Cost