Question

Kurt Sorenson is looking at a 4-year-old V8 four-door sedan that has 80,575 miles. It also has a DVD player, power mirrors, leather seats, front bucket seats, and a power sunroof. What is the average retail value and the average retail price?

Answer 1

Kurt wants a V8 four door sedan. For that the base price for retail is $16,675, while the base wholesale value is $13,270. We need to check each characteristic that his vehicle has to determine the value, we will need to deduct or add values.

The mileage on the car is 80,575 miles, therefore we need to deduce a total of $2,025 from the value, which is now:

`\begin{gathered} \text{retail}=16675-2025=14650 \\ \text{wholesale}=13270-2025=11245 \end{gathered}`

The question doesn't mention Air conditioning, so we need to deduct that as well.

`\begin{gathered} \text{retail}=14650-850=13800 \\ \text{wholesale}=11245-850=10395 \end{gathered}`

Now we can add the characteristics of the car. It has a DVD player, power mirrors, leather seats, front bucket seats and a power suroof, leaving us with:

`\begin{gathered} \text{retail}=13800+540+250+240+220+475=15525 \\ \text{wholesale}=10395+540+250+240+220+475=12120 \end{gathered}`

The retail value for this vehicle is $ 15,525, and the wholesale value is $ 12,120.