Car Buying Vocabulary Test

The average price the dealership

will give you for your old car when you buy a new

car through them.

• Trade-In Value

• Retail

• Option Packages

How many cars the dealership gets from

the manufacturer in a given period of time.

• Asking Price

• Allotment

• Book Value

This is the price the dealer says the car is

worth, and what you might pay if you don’t know

how to negotiate when buying a car.

• Destination Charge

• MSRP

• Retail

This is anything offered to car buyers,

from the car manufacturer, to get them to buy the

car.

• Incentives

• Dealer Invoice Price

• Option Packages

the price the manufacturer is suggesting the vehicle

be sold for.

• MSRP: “Manufacturer's Suggested Retail Price”

• Commission

• Book Value

The amount of income the

salesperson makes because they sell a vehicle.

• Book Value

• Commission

• Asking Price

Tags

CCSS.6.EE.B.6

The retail cost of the car before any

options are added on.

• Base Price

• Asking Price

• Commission

Tags

CCSS.6.EE.B.6

The price the seller of the car posts

when advertising the car.

• Dealer Invoice Price

• Asking Price

The price the car typically sells for.

This can be found through Kelley Blue Book, NADA

guide, and other sources.

• Book Value

• Dealer Invoice Price

The additional transportation

cost to get the car to your location.

• Incentives

• Destination Charge

• Commission