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					6.5 Buying a Car

MSRP

(Manufacturer’s Suggested Retail Price)
• Sticker price (includes equipment & mileage info) • Sometimes car is higher than MSRP if in very high demand
– S – standard (base price) – O – optional (add’l price) – NA – not available

• See buyer’s guide to features, top p. 250 in textbook • Warranty 12/12,000 means it’s covered “bumper-to-bumper” for 12 months or 12,000 miles, whichever comes 1st (covers non-routine
things – owner pays for brakes, oil changes, etc.)

Example 1
A customer wants to buy the MR35 Sports Sedan, STD model with the optional sixcylinder engine and power seats and the 36/36,000 extended warranty. Using the info from the MSRP list, p. 250 in textbook, find the price of this car:

Example 2
Jack is interested in the MR35, Model CTM, with the message center and ski rack. What is the car’s MSRP?

Cost of New Car Purchases
• Purchase price (negotiated price) • Sales tax • Registration fees (license & title transfer) • Non-taxable items (ex: extended warranties) • Rebates (discount) • Delivered price (out-the-door-price) • Down payment (might include trade-in) • Balance due (amt left to pay)

Delivered Price = purchase price + sales tax + registration fees + nontax items – rebates
Balance Due = delivered price – down payment

Example 3
The purchase price on a new car bought by Gretchen Cerna is $23,340. She is charged a 5% sales tax on the purchase price. She received a manufacturer’s rebate of $1250. Registration costs were $128. Gretchen’s down payment was a trade-in of $4300 given for her old car. Find the delivered price & the balance due:

Used Car Purchases – sold “asis” with no warranty (usually)
Example 4 The purchase price of a 3-yr old used car is $12,450. Other costs include registration fees of $128 & sales tax of 4%. They buyer made a down payment of $3800. What is the delivered price of the car and the balance due?

Wrap It Up


				
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posted:11/3/2009
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