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					6.5 Buying a
    Car
MSRP
(Manufacturer’s Suggested Retail Price)
• Sticker price

• Sometimes car is higher than MSRP if in very
  high demand
  –S–
  –O–
  – NA –
• See buyer’s guide to features, top p. 250 in
  textbook
• Warranty 12/12,000 means it’s covered
  “bumper-to-bumper” for __ months or ______
  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 six-
 cylinder 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
• Sales tax
• Registration fees
• Non-taxable items

• Rebates
• Delivered price
• Down payment
• Balance due
Delivered Price =



 Balance Due =
  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 –

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:7/20/2011
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