This is due to the inclusion of Sales Tax.
Explanation:
Michael bought a new car, because the sticker price was in his range which was $6100. He decided that he won't take warranty or any upgrades to the car. But he ended up paying much more. This is because there is a difference between the sticker price and the actually sales price.
This is actually a trick to grab customers. Sticker prices are flagged to attract customers which are exclusive of the taxes, and when the potential buyer makes his mind about buying the product, he ends up paying more than the sticker price because of the fact that at the time of purchase, the sales tax are added, which increase the sticker price of the product a lot.
So even if he doesn't buy warranty or any upgrade to the car, he will have to pay more than the sticker price due to the addition of the Sales tax in the sticker price and then the final price will be calculated.
Learn more about Sales Tax at:
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Answer:
Sales Tax
Explanation:
Some times and most of the times when retailers showcase a certan price they are not including taxes, those are added at the time of paying, so when Michael chose his car he most probably wasn´t considering the Sales tax which depends on the state where he is, and the locality where he is, but it varies from 6% all the way upto 13% between the two of them.
