The Open Road A vehicle can be a symbol of freedom, but it requires responsibility. What responsibilities come along with owning and operating a vehicle?

Lesson Objective Compute the sticker price of a new vehicle. Content Vocabulary sticker price The total cost of a new vehicle, including base price, options, and destination charge. base price options destination charge base price The price of the engine, chassis, and any other standard equipment for a particular model, referred to as the manufacturer’s suggested retail price. options Extra equipment on a vehicle for convenience, safety, or appearance, such as a sunroof, air conditioning, and tinted glass, which is not include in the base price. destination charge The cost of shipping a vehicle from the factory to the dealer.

Lesson Objective Calculate the dealer’s cost of a new vehicle. Content Vocabulary dealer’s cost The price the dealer actually pays for a vehicle, usually expressed as a percent of the base price, plus a percept of the options price, plus the destination charge.

Lesson Objective Calculate the average retail price or wholesale price of a used vehicle. Content Vocabulary used-vehicle guide Guides published monthly that give the average prices for used vehicles that were purchased from dealers during the previous month.

Lesson Objective Use tables to compute the annual premium for vehicle insurance. Content Vocabulary liability insurance Provides financial protection to the policyholder against claims for bodily injury and property damage as a result of an accident. collision insurance comprehensive insurance collision insurance Pays for damage to the insured vehicle caused by a collision with another motor vehicle or an object such as a telephone pole. comprehensive insurance Pays for damage to the insured vehicle from losses due to fire, vandalism, theft, and just about any cause other than a collision..

Lesson Objective Use tables to compute the annual premium for vehicle insurance. Content Vocabulary deductible clause A clause in an insurance policy that requires the insured to pay a certain amount before the insurance company pays. annual premium The amount you pay each year for insurance coverage.

Lesson Objective Compute the total cost per mile of operating and maintaining a vehicle. Content Vocabulary variable costs Costs of producing a product that vary directly with the number of units produced, such as raw materials and packaging. Also, vehicle costs that increase the more you drive, such as gasoline and tires. fixed costs depreciation fixed costs Production or vehicle costs which remain about the same regardless of how much you produce or drive, such as building rent or vehicle registration. depreciation The decrease in the value of your vehicle from one year to the next because of its age and condition.

Lesson Objective Calculate the total cost of leasing a vehicle. Content Vocabulary lease An agreement for the use of property, such as a building or vehicle, usually on an annual basis. closed-end lease open-end lease closed-end lease A contract that allows you the use of property, such as a vehicle, for a set time period by making a specified number of payments. open-end lease A contract allowing you the use of property, such as a vehicle, for a set time period by making a specified number of payments. At lease end, you can purchase the item for its residual value.

Lesson Objective Calculate the cost to rent a vehicle and the cost per mile to drive a rented vehicle. Content Vocabulary rent Agreeing to pay a set fee for the use of property, such as a vehicle or building, often on a daily, weekly, or monthly basis.

1.Mary Kayne is shopping for a new car that has a base price of $21,350. Factory-installed options include leather seats, $685; sport package, $1,205; and a sound system, $1,445. What is the sticker price? $23,240 $24,685 $25,490 $26,210

2.The SUV sticker shows a base price of $28,430 with options totaling $2,421 and a destination charge of $750. The dealer cost is 88.6% of the base price and 91.2% of the options. What is the dealer’s cost? $27, $28, $28, $31,601.00

3.ALGEBRA Monica Millett learned that the dealer’s cost of the sedan she wanted to purchase was $23, She also learned that the percent of the dealer’s cost was 83%. What is the base price of the car? $19, $28, $28, $28,987.11

4.Hilma Gomez wants to purchase a used car. The average retail price is $17,325. She adds $550 for low miles, $350 for leather seats and $100 for a CD player. What is the price Hilma can expect to pay for the car? $15,825 $18,225 $18,325 $18,950

5.Prem Singh is charged $319 for liability insurance, $213 for collision insurance, and $65 for comprehensive insurance. His driver rating factor is 1.6. What is his total annual premium for car insurance? $ $ $ $955.20

6.Robert Young purchased a car for $21,306 three years ago. It is currently valued at $15,430. What is the annual depreciation for this vehicle? $1, $1, $3, $5,876.00

7.For the past two years, Deanna Vela has recorded the cost of operating her car. She has a total of $1,350 fixed costs and $2, variable costs. Deanna has driven 10,900 miles. What is her cost per mile? $0.34 $0.37 $0.39 $0.53

8.Carleton Wallace leases a car. He made a $4,000 deposit and his payments are $530 per month for 48 months. He also paid a $90 title fee and a $50 license fee. What is his total lease cost? $25,920 $27,850 $29,580 $36,410

9.ALGEBRA Donald Webber is leasing a car. The $2,300 due at signing includes the title and fees. His monthly lease payment is $245 plus 7.5% sales tax. If the total lease cost is $11,781.50, for how many months does the lease last? 18 months 24 months 36 months 48 months

10.Mike Sheperd rented a standard SUV for 3 days at $49.95 per pay plus $0.20 per mile. Mike drove 327 miles and paid $72.25 for gasoline. What is the total cost to rent the SUV? $ $ $ $287.50

End of Chapter 9 Vehicle Transportation