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price quote

You have decided to buy a new automobile, and have been gathering information about the purchase price. The manufacturer's website shows a "list price" of $24,500, which includes all of your preferred options- leather trim, CD player, and so on. You have also consulted the "blue book" guide to car prices and found that the average price paid for a similar vehicle is $19,500. However, the guides also indicated that recent selling prices have ranged from $18,000 up to $22,000.

Required:

1. Which price quote- the "list price" or the "blue book" average price-is the most relevant for your decision? Why?

2. Which price quote is the most reliable? Why?

Solution Preview

You have decided to buy a new automobile, and have been gathering information about the purchase price. The manufacturer's website shows a "list price" of $24,500, which includes all of your preferred options- leather trim, CD player, and so on. You have also consulted the "blue book" guide to car prices and found that the average price paid for a similar vehicle is $19,500. However, the guides also indicated that recent selling prices have ranged from $18,000 up to $22,000.

Required:

1. Which price quote- the "list price" or the "blue book" average price-is the most relevant for your decision? Why?
There are two prices that you are considering. Now what is the "list price"? This is the ...

Solution Summary

Which price quote is the most reliable? Why?

$2.19