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The percent change is the increase or decrease in the value of a quantity. If the new value is larger than the original value then it is a percent increase and if the change in value is lesser than the original value it is called percentage decrease.

For example, if a person has 25 dollars and he gets 3 more dollars and now has 28 dollars, its percentage increase is calculated as shown:

$\begin{array}{l}\text{Increase}=28-25=3\\ \%\text{change=r,then}\\ \frac{3}{25}=\frac{r}{100}\\ r=\frac{3}{25}×100\\ =12\%\end{array}$

We are given that the cost of a new car is $15,500.

The cost of a new car is 25% greater than the cost of a used car.

If we let x represent the cost of the used car then, we can find the amount of change using the percentage change as follows:

$x=\text{Costofnewcar-25\%}×\text{Costofnewcar}$

Thus, plugging values we have:

$\begin{array}{l}x=\$15500−\frac{25}{100}×\$15500\\ x=15500−0.25×15500\\ x=15500−3875\\ x=\$11625\end{array}$

Thus, the cost of the used car is $11,625.