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

Calculate the average retail price or wholesale price of a used vehicle.

Content Vocabulary

used-vehicle guideused-vehicle guide

Guides published monthly that give the average prices for used vehicles that were purchased from dealers during the previous month.

used-vehicle guide

Guides published monthly that give the average prices for used vehicles that were purchased from dealers during the previous month.

Jackie Morris would like to purchase a used Palamino 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.

Example 1Example 1

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 Morris keep in mind when she makes an offer for the vehicle? (See Figure 9.2 below.)

Example 1 (cont.)Example 1 (cont.)

Figure 9.2Figure 9.2

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

Example 1 AnswerExample 1 Answer

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

$14,125

Practice 1 AnswerPractice 1 Answer