You have agreed to buy a new Subaru from a dealer. The down payment you will need to make on the new car is $9,400, which lets you take out a loan with manageable (but steep) monthly payments. You are low on ready cash, so if you can't come up with the down payment by selling your Volkswagen Jetta, you will have to borrow it at prime plus 5% interest. You are supposed to pick up the Subaru first thing tomorrow morning, so you want to sell the Jetta today.
You advertised the Jetta (which is in particularly good condition) in the newspaper as well as online, and have had several calls. Your only good prospect right now is the person with whom you are about to bargain – a stranger. You don't have to sell the car to this person, but if you don't sell the Jetta right away, you will have to pay high interest (on the Subaru down payment) until you do.
The Subaru dealer will give you only $8,800 for the Jetta (as a trade-in), since it will probably have to be resold to a Volkswagen dealer or to a used car broker. The local Volkswagen dealer is not anxious to buy the car from you because a large shipment of cars has just arrived; in any case, you probably would not receive more than $8,800.
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Before beginning this negotiation, set the following targets for yourself:
1. The price you would like to receive for the Jetta _____$9,500.00_____
2. The price you will initially present to the buyer __$10,000.00_____
3. The lowest price you will accept for the car ___$9,200.00_______
Since you did not have a partner, I would like you to simply tell me how you would have prepared for this negotiation and what you think the outcome would be.
I would have prepared for the negation by first conducting market research, since I am dealing with a used car. My market research will entail searching the internet for used car for sale, which are similar to my Jetta. For each car that fits the profile (year, make model) of my Jetta I will take note of the extras that I have to offer, such as, low millage, sunroof, premium stereo, tire and rim packages, tented windows, power / heated seats, in dash DVD, excreta, excreta excreta. With the purpose of obtaining usable information that, I can show the prospective buyer the extras that my Jetta has to offer. I think that this may help to justify my price point.
I will also obtain a recent copy of the Car Fax report to highlight the fact that I am on the up and up and that I am not trying to hide anything, furthermore I will also provide the maintenance records as to show that the car was well cared for and prove that it is in good condition. Finally, I would stage the car by washing and wax it prior to the appointment as well as giving it a detailed cleaning. In an effort to highlight its exceptional condition and draw attention away from minor blemishes, because I think that a properly staged car will sell fast. I think the outcome will result in the sale of my car.
I also think that I may have to concede on the price a bit because people like to feel that they are getting a deal. Moreover, I think that if a person feels that he is getting a $ 500.00 concession on an already good deal, however I would stipulate that the only way that I could justify reducing my price ( which is already an excellent deal) by $500.00 is that the deal is closed today. I would even be willing to go down to my lowest acceptable price, just to get out of the car.