purchasing a used vehicle pp. 320-322 9-3 section
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Purchasing a Used Vehicle pp. 320-3229-3SECTIONSECTION
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Copyright © Glencoe/McGraw-Hill MBA, Section 9-3, Slide 2 of 12
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used-vehicle guide (p. 320)
Guides published monthly that give the average prices for vehicles that were purchased from dealers during the previous month.
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How do I find the average retail price of a used car?
Average Retail Value+ Additional Options– Options Deductions– Mileage Deduction____________________ Average Retail Price
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Jackie Chan would like to purchase a used Elcamino V8 four-door car, which is advertised for $15,450. It has power seats, premium sound system, leather seats, and a power sunroof. It has been driven 51,760 miles.
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The used-vehicle guide indicates that $575 should be subtracted if the mileage is from 45,001 to 52,500 miles.
What average price should Chan keep in mind when she makes an offer for the vehicle? (See Figure 9.2 below.)
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Figure 9.2Figure 9.2
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Step: Find the average retail price.
Average + Additional – Options – MileageRetail Options Deductions
DeductionsValue
$14,675 + ($125 + 200 + 340 + 450) – $800 – $575
$14,675 + $1,115 – $800 – $575 = $14,415
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Minivan. Average retail value is $13,375. Add $500 for left sliding door. Add $175 for power seat. Add $375 for rear air conditioning. Deduct $175 without cruise control. Deduct $125 without tilt wheel. No adjustment for mileage.
What is the average price?
Practice 1Practice 1
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$14,125
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