1. Vehicle Transportation

2. Purchasing a New Vehicle Sticker Price: The total price of the vehicle, including the base price, options, and destination charge.Sticker Price: The total price of the vehicle, including the base price, options, and destination charge. Base Price: The price of vehicles engine, chassis, and any other standard equipment for a particular model.Base Price: The price of vehicles engine, chassis, and any other standard equipment for a particular model. Options: Extra equipment on a vehicle not included in the base price, such as a sun roof, air conditioning, and tinted glass.Options: Extra equipment on a vehicle not included in the base price, such as a sun roof, air conditioning, and tinted glass. Destination Charge: The cost of shipping a vehicle from factory to the dealer.Destination Charge: The cost of shipping a vehicle from factory to the dealer. Sticker Price=Base Price + Options+ Destination Charge

3. Dealers Cost Dealers Cost: Vehicle dealers pay less than the sticker price for both the basic vehicle and options.Dealers Cost: Vehicle dealers pay less than the sticker price for both the basic vehicle and options. –Some dealers pay for 95 percent of the base price and 89 percent of the options price!

4. Purchasing a Used Vehicle Dealers price the vehicles higher than what they expect you to pay!!!!Dealers price the vehicles higher than what they expect you to pay!!!! Used-Vehicle Guides: published monthly by the National Automobile Dealers Association or Vehicle Market Research give average prices for vehicles that were purchased during the previous month.Used-Vehicle Guides: published monthly by the National Automobile Dealers Association or Vehicle Market Research give average prices for vehicles that were purchased during the previous month.

5. Vehicle Insurance Liability Insurance: Financial protection against accidents that cause bodily injury and property damage.Liability Insurance: Financial protection against accidents that cause bodily injury and property damage. Comprehensive Insurance: Protects you from losses due to fire, vandalism and theft.Comprehensive Insurance: Protects you from losses due to fire, vandalism and theft. Collision Insurance: Pays repair of vehicle if its in an accident.Collision Insurance: Pays repair of vehicle if its in an accident. Deductible: Amount you pay before the insurance pays anything.Deductible: Amount you pay before the insurance pays anything.

6. Operating and Maintaining a Vehicle Variable Costs: increase the more you drive.Variable Costs: increase the more you drive. –Gasoline –Tires Fixed Costs: remain about the same regardless of how many miles you drive.Fixed Costs: remain about the same regardless of how many miles you drive. –Insurance –Registration Depreciation: decrease in the value of your vehicle because of its age and condition.Depreciation: decrease in the value of your vehicle because of its age and condition.

7. Leasing a Vehicle Lease: you make monthly payments to the leasing company, the dealer, or the bank for two to five years. You don’t own the car, you are essentially renting the car!Lease: you make monthly payments to the leasing company, the dealer, or the bank for two to five years. You don’t own the car, you are essentially renting the car! Important Questions What formula do I use? How do I calculate the Total cost of the lease. Total Lease of Car= (Number of Payments X Amount of Payment) +deposit+ Title Fee + License Fee

8. Renting a Vehicle Rent: Payment for the use of the property, such as a building or vehicle, often on a daily, weekly, or monthly basis.Rent: Payment for the use of the property, such as a building or vehicle, often on a daily, weekly, or monthly basis. Cost per Mile = Total Cost Number of Miles Driven