cons30s vehicles - buying a new vehicle

BUYING A NEW VEHICLE

When you purchase a NEW vehicle from a dealer, there are a lot of "terms" that are thrown around during the conversation.

If you don't have a good idea of what they mean, you might get convinced to spend much more than you had planned, and might end up with something you don't need.

BASE PRICE: The basic cost of a vehicle with standard equipment.

DOCUMENTATION FEE:The amount you pay the dealership for doing all the paperwork involved in purchasing your vehicle.(this is a MAJOR rip­off!!!!)

FREIGHT CHARGES:The cost of transporting your vehicle from another place to the dealership.

OPTIONAL EQUIPMENT:"Extras" on your vehicle. Can be anything from a dvd player, GPS, power sunroof, heated seats, ...etc.

PREFERRED EQUIPMENT PACKAGE:A set of optional equipment that can be bought as an "entire package" for a discounted price.

TRADE­IN ALLOWANCE:The amount the dealership will pay you for your vehicle if you are considering trading it in for value.

STICKER PRICE:

This price includes ONLY:

* BASE PRICE* ALL OPTIONS* FREIGHT* AIR CONDITIONING TAX.

EX You are going to buy a new 2009 Honda Civic. The base price is $37,430. You add on an options package that costs $2358 plus automatic transmission for $780 and a dvd player for $1500. Freight on the vehicle is $550. The dealership will give you a trade­in allowance of $1600 on your old vehicle. The documentation fee is $130 and you live in MB. What is the total cost of the vehicle?

(MAKE SURE THE STICKER PRICE IS STATED CLEARLY, somewhere in your answer andyou label each line of work.)

BASE PRICE $37,430OPTIONS (2358 + 780 + 1500) $4,638FREIGHT CHARGE $550STICKER PRICE (37,430 + 4,638 + 550) $42,618__________________________________________________________

DOCUMENTATION FEE ( + 130) $42,748LESS TRADE­IN ( ­ 1,600) $41,148

PST & GST (* 0.14) $5,760.72___________________________________________________________

TOTAL (41,148 + 5,760.72) $46,908.72

HOMEWORKpg.163; 2,3,5­7