Assessment - Used Car Price Negotiation
My target for this negotiation was to get the car at $4,500, the low end of blue book value. $4,500 could be the net price, which means if seller can offer something else, such as maintenance service, parts or accessories to offset some part of the cost, I can accept higher price. My BATNA is to deal with other seller for similar used car. Eventually, I couldn’t make any deal with seller during the negotiation because he wanted to sell at $5,000 and his extra accessory offer is not worth $500. And I found out that this car’s timing belt has not been changed. It should have been replaced right after 100k mileages and it will cost about $600.
I entered into the …show more content…
• Asking seller questions about the car and carefully listening seller’s answer to understand why he want sell at this price and the car’s condition for other options consideration. Tried to ask reasonable questions as many as I can and let seller speak as much as he want. More information is always helpful.
• My statement at beginning of price discussion that my budget is about $4,200 did help to lower seller’s expectation of selling the car at higher price than his bottom line. I did so because even though seller found what I told him was not true, I still feel OK because I really don’t care very much our long term relationship. Keep in mind that my negotiation strategy in this case is ‘win-lose’.
• Figuring out what is the price gap and going through detail with seller for each of other options including service, payment term, timing belt change and accessories, really help to explore the opportunities of making a deal. I tried to use the value of these options to fill the gap between my target price and seller’s price. Even though that was failed because what seller could offer is not enough, I still believe it is worthy of doing that.
• Keeping the relationship with seller at end of the negotiation even we failed to make the deal. Expressing the appreciation for his time. That will help for the possible opportunity when he change his