Question

Complete the problem, then check your answer at the end of this chapter.

1. Using Figure 9.2, find the average retail price for a four-year old V6 four-door vehicle that has air conditioning, power seats, leather seats, manual sunroof, and aluminium wheels. It has been driven only 36,500 miles. The used-vehicle guide indicates that $525 should be added if the mileage is from 30,001 to 37,500 miles. What is the average retail price for this vehicle?

Answer 1

The average retail price for this vehicle is $14,390.

To calculate the average retail price for the specified four-year-old V6 four-door vehicle with the given features and mileage, follow these steps:

Start with the base average retail value for a V6 four-door vehicle.

Add the value for each additional feature.

Add the value for the mileage bracket.

Let's calculate it:

Base price for V6 Four-Door = $13, 050

Add for Power Seats = $125

Add for Leather Seats = $340

Add for Manual Sunroof = $225

Add for Aluminum Wheels = $125

Add for Mileage (30,001 to 37,500 miles) = $525

Now, add all these values together to get the total average retail price:

Total average retail price = $13,050+$125+$340+$225+$125+$525 = $14,390.

So, the average retail price for this vehicle is $14,390.