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Buying a Car

Buying a Car. 6.5. Manufacturer’s Suggested Retail Price. MSRP or Sticker price Base price Extended Warranty Features. Manufacturer’s Suggested Retail Price (Example).

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Buying a Car

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  1. Buying a Car 6.5

  2. Manufacturer’s Suggested Retail Price • MSRP or Sticker price • Base price • Extended Warranty • Features

  3. Manufacturer’s Suggested Retail Price (Example) • You want to buy a MR35 Sports Sedan, STD model with the optional six-cylinder engine, power seat, and a 36/36,000 extended warranty. Using page 250, find the price of the car… • Find the base price • Add extras to the base price = MSRP (list price)

  4. Manufacturer’s Suggested Retail Price (A) • MR35 PRM model with alarm system & color matched trim. What is the MSRP of this car? • Find the base price (look on page 250) $25,096 • Add extras to the base price = MSRP (list price) $25,825

  5. Manufacturer’s Suggested Retail Price (B) • MR35 CTM model with message center & ski rack. What is the MSRP of this car? • Find the base price (look on page 250) $24,185 • Add extras to the base price = MSRP (list price) $24,898

  6. Cost of New Car Purchases • Terms to know: • Purchase Price • Sales Tax • Registration Fees • Non-Taxable Items • Rebates • Delivered Price • Down Payment • Balance Due

  7. Cost of New Car Purchases (Example) • Purchase price is $23,340. You are charged a 5% sales tax on the purchase price. Manufacturer’s rebate of $1,250. Registration cost is $128. Down-payment/Trade-in of $4,300. Find the delivered price and balance due. • Find sales tax 5% x $23,340 = $1,167 • (Price + costs) – rebate = Delivered price ($23,340 + $1,167 + $128) - $1,250 = $23,385 3. Delivered price – down payment = Balance Due $23,385 - $4,300 = $19,085

  8. Cost of New Car Purchases (C) • Purchase price is $20,067. Added an extended warranty of $250. Registration and fees are $134.85. A 4.5% sales tax is charged on purchase. Made a down payment of $6,000. Find the delivered price and the balance due. • Find sales tax 4.5% x $20,067 = $903.02 • (Price + costs) – rebate = Delivered price $20,067 + $903.02 + $250 + $134.85 = $21,354.87 3. Delivered price – down payment = Balance Due $21,354.87 - $6,000 = $15,354.87

  9. Cost of New Car Purchases (D) • Purchase price is $16,238. A 6% sales tax is charged on purchase. Plates, title transfer, & other fees are $186. Made a down payment of 10% of price. Find the delivered price and the balance due. • Find sales tax 6% x $16,238 = $974.28 • (Price + costs) – rebate = Delivered price $16,238 + $974.28 + $186 = $17,398.28 3. Delivered price – down payment = Balance Due $17,398.28- (10% x $16,238) = $15,774.48

  10. Cost of Used Car Purchases • Terms to know • Purchase Price • Delivered Price • “As is”

  11. Cost of Used Car Purchases (Example) • Purchase price of the 3-year old used car is $12,450. Registration fees of $128 and sales tax of 4%. Down payment is $3,800. What is the delivered price and the balance due? • Find sales tax 4% x $12,450 = $498 • (Price + costs) – rebate = Delivered price $12,450 + $498 + $128 = $13,076 3. Delivered price – down payment = Balance Due $13,076 - $3,800 = $9,276

  12. Cost of Used Car Purchases (E) • Purchase price of the 1-year old used car is $16,500. Other costs of $85 for license plates, $47 for title transfer and sales tax of 7%. What is the total cost of the car? • Find sales tax 7% x $16,500 = $1,155 • (Price + costs) – rebate = Delivered price $16,500 + $1,155 + $85 + $47 = $17,787 (total cost)

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