OMVIC Practice Test 2025 - Free OMVIC Practice Questions and Study Guide

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What is often included in a vehicle’s purchase price aside from the base cost?

Dealer's profit margin only

State sales tax and registration fees

The purchase price of a vehicle typically encompasses more than just the base cost of the vehicle itself. Including state sales tax and registration fees reflects the additional costs that buyers should anticipate when finalizing their purchase.

State sales tax is a mandatory government charge based on the vehicle's purchase price and varies by jurisdiction, adding to the overall financial commitment involved. Registration fees are necessary to legally register the vehicle with the state or province, allowing for proper documentation and validation of ownership. These components are essential to consider as they significantly increase the total amount a buyer needs to budget for when purchasing a vehicle.

In contrast, while dealer's profit margin, advertising costs, and shipping expenses may influence the overall pricing strategy of the dealership, they are not typically itemized as separate charges included in the purchase price.

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Cost of advertising

Shipping expenses only

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