New & Used Vehicles
Define: sticker price
the price of a new vehicle (sticker on window)
Define: dealer's cost
a percent of the base cost plus a percent of the options price plus the destination charge
Define: annual premium
the amount you pay each year for insurance
Define: depreciation
the decrease in the value of your vehicle from one year to the next due to its age and condition
Define: lease
an agreement for the use of a vehicle, usually on an annual basis
What does MSRP stand for?
Manufacturer's Suggested Retail Price
A truck sticker shows the base price as $17,523. The dealer's cost is 92.5% of the base price.
$16,208.78
What goes into your driver-rating factor?
age, marital status, number of miles you drive each week, if you drive a long distance to work, and if you use your vehicle for pleasure or business
What is an example of a fixed cost for your car?
insurance, registration fees, loan interest, depreciation
Define: rent
agreeing to pay a set fee for the use of a vehicle, often on a daily/weekly/monthly basis
What is the formula to find the sticker price?
base price + options + destination charge
The options for the truck equal $6,983. The dealer's cost is 86% of the options.
$6,005.38
What factors determine your base premium?
What is an example of a variable cost for your car?
gas, oil, filter, tires, repairs
total lease cost =
(number of payments * amount of payments) + deposit + title + license fee
What is the formula to find the price of a used vehicle?
average retail price + additional options - options deductions - mileage deductions
The dealer's percent of the base price is $16,208.78 and the options are $6,005.38 with a $300 destination charge. What is the dealer's cost?
$22,514.16
annual base premium =
liability premium + collision premium + comprehensive premium
depreciation =
purchase price - today's value / number of years owned
total rent cost =
(daily cost * number of days) + (mileage cost * price per mile) + gas
River City Auto has truck for sale. The base price is $22,225. The options add up to 3,725 with a destination charge of $230. What is the sticker price for the truck?
$26180
At Lakeland Autos, the dealer's cost on an SUV is 88% of the $53,105 base price and 90% of the $1785 options price plus a $640 destination charge. Find the dealer's cost for the SUV.
$48,978.90
annual premium =
annual base premium * driver-rating factor
cost per mile to maintain =
annual variable cost + annual fixed cost / number of miles
cost per mile to rent =
total rent cost / number of miles