Q:

Jacob North wants to buy a 4-year old sedan. His friend has a V8 4-door sedan that he will sell Jacob at wholesale. The car has a manual transmission, a DVD player, leather sets, a power sunroof and 53,480 miles. A dealership down the street has a V6 4-door sedan that is being sold at retail. That car has power mirrors, front bucket seats, aluminum wheels, and 73,840 miles. It does not have air conditioning. Which car costs less, and how much less?

Accepted Solution

A:
The V8 from Jacob’s
friend will cost
$265 less.
V6 Retail: $15,500 + ($250 + $220+ $120) – $850 – $1,775 = 13,465
V8 wholesale:
$13,270 + ($540 + $240 + $475) – $650 – $675 = $13,200

$13,465 – $13,200
= $265.