1. BUYING A NEW VEHICLE

2. When you purchase a NEW vehicle from a
dealer, there are a lot of quot;termsquot; 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.

3. 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!!!!)

4. FREIGHT CHARGES:
The cost of transporting your vehicle from
another place to the dealership.
OPTIONAL EQUIPMENT:
quot;Extrasquot; on your vehicle. Can be anything from a
dvd player, GPS, power sunroof, heated seats, ...etc.

5. PREFERRED EQUIPMENT PACKAGE:
A set of optional equipment that can be bought as an
quot;entire packagequot; 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.

6. STICKER PRICE:
This price includes ONLY:
* BASE PRICE
* ALL OPTIONS
* FREIGHT
* AIR CONDITIONING TAX.

7. 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 and
you label each line of work.)
BASE PRICE $37,430
OPTIONS (2358 + 780 + 1500) $4,638
FREIGHT CHARGE $550
STICKER PRICE (37,430 + 4,638 + 550) $42,618
__________________________________________________________
DOCUMENTATION FEE ( + 130) $42,748
LESS TRADE­IN ( ­ 1,600) $41,148
PST & GST (* 0.14) $5,760.72
___________________________________________________________
TOTAL (41,148 + 5,760.72) $46,908.72

8. HOMEWORK
pg.163; 2,3,5­7