Chapter 9 Vehicle Transportation Practice for Test

Front

What is the base price of a vehicle?

Back

The base price is the manufacturer's suggested retail price (MSRP) for a vehicle before any additional options, fees, or taxes are added.

Front

What does it mean to purchase a vehicle at a percentage of its base price?

Back

It means buying the vehicle for a price that is a certain percentage of the MSRP, which can result in a lower cost.

Front

What is an options price in vehicle sales?

Back

The options price refers to the cost of additional features or equipment that are not included in the base price of the vehicle.

Front

What is a destination charge?

Back

A destination charge is the fee that covers the cost of transporting a vehicle from the manufacturer to the dealership.

Front

How do you calculate the total cost of a vehicle?

Back

Total cost = (Base price x Purchase percentage) + (Options price x Options percentage) + Destination charge.

Front

What is the formula to calculate the total lease cost of a vehicle?

Back

Total lease cost = (Monthly payment x Number of months) + Deposit + Title and license fees.

Front

If a vehicle's base price is $18,500 and it is purchased at 92%, what is the purchase price?

Back

Purchase price = $18,500 x 0.92 = $17,020.

Front

What is the significance of a lease in vehicle financing?

Back

Leasing allows individuals to use a vehicle for a specified period while making monthly payments, without owning the vehicle.

Front

What are examples of options in vehicle sales?

Back

Examples include sunroofs, air conditioning, upgraded sound systems, and navigation systems.

Front

What does it mean to pay 90% of the options price?

Back

It means the buyer is paying 90% of the total cost of additional features or equipment for the vehicle.