1. Lesson 9.2 Dealer’s Cost

2. Why do you pay more than the dealer does when you buy a car? Make profit on car Make profit on options Pay commission Pay destination charge Pay operating costs

3. Do you have to pay the sticker price? NO!!!!! You can save $ by making an offer What are some services you can use?

4. Formulas you will need Percent of the Base Price = Base Price x Percent of Dealer’s Cost of Base Price Percent of the Options Price Percent of Dealer’s Cost on Options = Total Price of Options x Dealer’s = Cost Percent of the + Base Price Percent of the + Options Price Destination Charge

5. Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? You will first need to find: a)The sticker price b)The percent of base price c)The percent of options price d)The estimated dealer’s price

6. Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? a)The sticker price 37125+ 2975+ 870 = $40,970

7. Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? b)The percent of base price Percent of the Base Price = Base Price x Percent of Dealer’s Cost of Base Price = 37125 x 0.93 = $34, 526.25 Percent of the Base Price Percent of the Base Price

8. Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? c)The percent of options price = 2975x 0.91 = $2,707.25 Percent of the Options Price Percent of the Options Price Percent of the Options Price Percent of Dealer’s Cost on Options = Total Price of Options x

9. Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? d)The estimated dealer’s price (cost) Dealer’s = Cost Percent of the + Base Price Percent of the + Options Price Destination Charge Dealer’s = Cost $34, 526.25 + $2,707.25 + $870 Dealer’s = Cost $38,103.50 Does this answer the question?

10. Jordan West is considering the purchase of a station wagon. Its base price is $37,125, options total is $2975, and destination charge is $870. The dealer’s costs are 93% of base price and 91% of options price. If he plans to pay $650 over the dealer’s cost, then how much will he pay? What do we still need to do with $38,103.50? $38,103.50 + $ 650 $38,753.50

11. What would he do if he was to offer $200 below the deal’s cost? $38,103.50 - $ 200 Dealer’s = Cost $38,103.50 $37,903.50

12. Any questions?