Terry Has Purchased A New Car With A List Price Of $ 16 , 825 \$16,825 $16 , 825 . She Had To Pay 7.19 % 7.19\% 7.19% Sales Tax, A $ 1 , 128 \$1,128 $1 , 128 Vehicle Registration Fee, And A $ 190 \$190 $190 Documentation Fee. Terry Traded In Her Previous Vehicle, A 2003

Introduction

When purchasing a new car, there are several costs involved beyond the list price of the vehicle. These costs can include sales tax, registration fees, and documentation fees. In this article, we will explore the total cost of Terry's new car purchase, including the list price, sales tax, vehicle registration fee, and documentation fee.

Calculating the Sales Tax

The sales tax on Terry's new car is $7.19\%$ of the list price of $\$16,825$. To calculate the sales tax, we can multiply the list price by the sales tax rate.

$$\text{Sales Tax} = \text{List Price} \times \text{Sales Tax Rate}$$

$$\text{Sales Tax} = \$16,825 \times 0.0719$$

$$\text{Sales Tax} = \$1,208.19$$

So, the sales tax on Terry's new car is $\$1,208.19$.

Calculating the Total Cost

In addition to the sales tax, Terry also had to pay a $\$1,128$ vehicle registration fee and a $\$190$ documentation fee. To calculate the total cost of the car purchase, we need to add these fees to the list price and sales tax.

$$\text{Total Cost} = \text{List Price} + \text{Sales Tax} + \text{Vehicle Registration Fee} + \text{Documentation Fee}$$

$$\text{Total Cost} = \$16,825 + \$1,208.19 + \$1,128 + \$190$$

$$\text{Total Cost} = \$19,351.19$$

So, the total cost of Terry's new car purchase is $\$19,351.19$.

The Value of Trading in a Previous Vehicle

Terry traded in her previous vehicle, a 2003 Honda Civic, which had a value of $\$2,500$. This trade-in value can be subtracted from the total cost of the new car purchase to determine the net cost of the purchase.

$$\text{Net Cost} = \text{Total Cost} - \text{Trade-in Value}$$

$$\text{Net Cost} = \$19,351.19 - \$2,500$$

$$\text{Net Cost} = \$16,851.19$$

So, the net cost of Terry's new car purchase is $\$16,851.19$.

Conclusion

In conclusion, the total cost of Terry's new car purchase is $\$19,351.19$, which includes the list price, sales tax, vehicle registration fee, and documentation fee. However, by trading in her previous vehicle, Terry was able to reduce the net cost of the purchase to $\$16,851.19$. This highlights the importance of considering all costs involved in a car purchase, including fees and trade-in values.

Calculating the Sales Tax Rate

To calculate the sales tax rate, we can use the following formula:

$$\text{Sales Tax Rate} = \frac{\text{Sales Tax}}{\text{List Price}}$$

$$\text{Sales Tax Rate} = \frac{\$1,208.19}{\$16,825}$$

$$\text{Sales Tax Rate} = 0.0719$$

So, the sales tax rate is $7.19\%$.

Calculating the Trade-in Value

To calculate the trade-in value of Terry's previous vehicle, we can use the following formula:

$$\text{Trade-in Value} = \text{Vehicle Value} \times \text{Trade-in Percentage}$$

$$\text{Trade-in Value} = \$2,500 \times 0.5$$

$$\text{Trade-in Value} = \$1,250$$

However, in this case, the trade-in value is given as $\$2,500$.

Calculating the Net Cost

To calculate the net cost of the car purchase, we can use the following formula:

$$\text{Net Cost} = \text{Total Cost} - \text{Trade-in Value}$$

$$\text{Net Cost} = \$19,351.19 - \$2,500$$

$$\text{Net Cost} = \$16,851.19$$

So, the net cost of Terry's new car purchase is $\$16,851.19$.

The Importance of Considering All Costs

Q: What is the list price of Terry's new car?

A: The list price of Terry's new car is $\$16,825$.

Q: What is the sales tax rate on Terry's new car?

A: The sales tax rate on Terry's new car is $7.19\%$.

Q: How much is the sales tax on Terry's new car?

A: The sales tax on Terry's new car is $\$1,208.19$.

Q: What is the vehicle registration fee on Terry's new car?

A: The vehicle registration fee on Terry's new car is $\$1,128$.

Q: What is the documentation fee on Terry's new car?

A: The documentation fee on Terry's new car is $\$190$.

Q: What is the total cost of Terry's new car purchase?

A: The total cost of Terry's new car purchase is $\$19,351.19$.

Q: What is the trade-in value of Terry's previous vehicle?

A: The trade-in value of Terry's previous vehicle is $\$2,500$.

Q: What is the net cost of Terry's new car purchase?

A: The net cost of Terry's new car purchase is $\$16,851.19$.

Q: Why is it essential to consider all costs involved in a car purchase?

A: It is essential to consider all costs involved in a car purchase because it helps you make an informed decision and avoid any unexpected expenses. By considering all costs, you can determine the total cost of the purchase and calculate the net cost by subtracting the trade-in value.

Q: How can I calculate the sales tax rate on my new car purchase?

A: To calculate the sales tax rate, you can use the following formula:

$$\text{Sales Tax Rate} = \frac{\text{Sales Tax}}{\text{List Price}}$$

Q: How can I calculate the trade-in value of my previous vehicle?

A: To calculate the trade-in value, you can use the following formula:

$$\text{Trade-in Value} = \text{Vehicle Value} \times \text{Trade-in Percentage}$$

Q: What is the importance of considering the vehicle registration fee and documentation fee in a car purchase?

A: The vehicle registration fee and documentation fee are essential costs to consider in a car purchase because they can add up quickly and affect the total cost of the purchase. By considering these fees, you can determine the total cost of the purchase and calculate the net cost by subtracting the trade-in value.

Q: How can I determine the net cost of my new car purchase?

A: To determine the net cost of your new car purchase, you can subtract the trade-in value from the total cost of the purchase.

Q: What are some tips for negotiating the price of a new car?

A: Some tips for negotiating the price of a new car include:

• Researching the market value of the car
• Knowing the trade-in value of your previous vehicle
• Being prepared to walk away from the deal if it's not in your favor
• Negotiating the price of the car, not the monthly payment
• Considering additional costs, such as sales tax and fees

By following these tips, you can negotiate the price of a new car and get a good deal.