Question

According to AAA the average monthly maintenance cost on a used car is $75 per month. You are looking to pay cash for the exact same Jeep at two different dealers. Dealer "A' wants $4,995.00. Dealer "B" wants $5,595.00 with free maintenance coverage for one year. Which is the best deal?

Answer 1

Answer:

Dealer "B"  at $5,595.00

Explanation:

Comparison of cost charges for dealer A and dealer B will have to include the one-year maintenance offered by dealer B.

The cost for dealer A will be

maintenance for one year= $75 x 12=  $900

cost of the car=  $4,995.00.

total cost for dealer A

= $4,995.00 + $900

=$5,895

The cost from dealer B is $5,595.

Dealer B has the better deal as they are cheaper by $300

( $5,895- $5,595)