What is the formula used to calculate 'flip' in vehicle sales?

The correct approach to determine the 'flip' in vehicle sales is through the calculation of the selling price minus the reduced book value. This formula helps identify the profit or loss that occurs when a vehicle is sold.

The reduced book value reflects the current worth of the vehicle after accounting for depreciation, which provides a more accurate representation of the asset's value at the time of sale. By subtracting this figure from the selling price, you effectively calculate how much profit has been made from selling the vehicle, which is crucial for both sellers and buyers in understanding the financial transaction.

Understanding the implications of this calculation is vital for car dealers and individuals involved in buying and flipping cars, as it directly impacts their profitability. The other options do not align as closely with this specific calculation needed to assess the flip accurately.