Purchasing a New Vehicle
Total price of a vehicle, including base price, options, and destination charge
Sticker Price
Price dealer actually paid for a vehicle, usually expressed as a percent.
Dealer's Cost
A decrease in the value of a vehicle because of its age and condition
Depreciation
Typically, the younger the driver, the ____ expensive the vehicle insurance.
more
Payment for the use of a vehicle, usually on a daily, weekly, or monthly basis.
Renting
Extra equipment on a vehicle not included in the base price, such as a sunroof or heated seats
Options
Guides published monthly and online that give the average prices for vehicles that were previously owned
Used-Vehicle Guide
(i.e. Kelly Blue Book, Consumer Reports, etc.)
Theses costs increase (and change) the more you drive. Ex: gasoline and tires
Variable Costs
Typically, an expensive car will have ____ expensive vehicle insurance.
more
Give one reason why someone would lease a car instead of buying one?
- lower monthly payments
- new car every 2-3 years
- better warranty perfection
Cost of shipping a vehicle from the factory to the dealer.
Destination Charge
3 PARTS
Does the price of a used car go UP or DOWN if:
1. Has additional options (like leather seats)
2. Has options deductions (like no air condition)
3. Drives additional mileage
1. Goes Up
2. Goes Down
3. Goes Down
Annual Variable Cost + Annual Fixed Cost / # of Miles Driven is the formula for calculating what?
Cost per mile
Typically, the lower your credit score, the _____ your insurance rates will be.
higher
You rented a car for $40.00 a day. The mileage charge was $0.18 for every mile more than 100 driven. If you had the car for 5 days and drove 87 miles, what was your total cost?
$200.00
You're buying a new car whose base price is $20,999 with no options and a $349 destination charge, what is its sticker price?
$21,348.00
The used vehicle guide shows the the average retail value for a V6 Four-Door car is $14,392.00. The buyer adds power seats for $350 and aluminum wheels for $200. The buyer deducts $600 because the car does not have air conditioning. What is the average retail price of the vehicle?
$14,342.00
You drove 15,000 miles last year with fixed costs of $1,299.00 and variable costs of $1,085.79. What was your cost per mile? Round to the nearest cent
.16 (16 cents / mile)
Insurance that pays to repair a vehicle if it’s involved in an accident.
Collision Insurance
You rented a car for $56.00 a day. The mileage charge was $0.31 for every mile more than 75 driven. If you had the car for 3 days and drove 125 miles, what was your total cost?
$183.50
You are purchasing a new sports car whose base price is $31,000 with options including a $600 sun roof, $400 leather seats, and $425 destination charge, what is its sticker price?
$32,425.00
The used vehicle guide shows the the average retail value for a V8 Four-Door car is $18,640.00. The buyer adds leather seats for $800 and anti-lock brakes for $75. The buyer deducts $300 for excessive mileage. What is the average retail price of the vehicle?
$19,215.00
You drove 9,800 miles last year with fixed costs of $989.00 and variable costs of $1,224.30. What was your cost per mile? Round to the nearest cent
.23 (23 cents)
Financial protection against accidents that cause bodily injury and property damage
Liability Insurance
You are buying a new car with a base price of $18,500. The options total $6,045 and the destination charge is $450. The dealer’s cost is estimated to be 87% of the base price and 90% of the options. What is the estimated dealer’s cost?
$21,985.50