The Used Car

Introduction

The scenario for this role-play involves the negotiation on a used car that is for sale. While there is a great deal of other information that may be used to construct supporting arguments or to build in demands and requests in addition to the price, the sale price is usually the most important indicator used to determine how well you do in comparison to other role-play groups.

Background Information

You are about to negotiate the purchase/sale of an automobile. The seller, who lives in the same city as the buyer, advertised the car in an online listing. Before advertising it, the seller took the car to the local Volkswagen dealer, who has provided the following information:

• 2011 Volkswagen Jetta S sedan, 2.5L five-cylinder engine, automatic transmission, power steering, air conditioning, front-wheel drive, dual air bags, cruise control.
• Black with gray interior, power door locks, heated seats, power windows, and AM/FM/CD stereo.
• Mileage: 51,000 miles; radial tires expected to last another 30,000 miles.
• Fuel economy: 24 mpg city, 31 mpg highway; uses regular (87 octane) gasoline.
• No rust; dent on passenger door barely noticeable.
• Mechanically perfect except exhaust system, which may or may not last another 10,000 miles
• (costs $650 to replace).
• Blue book values: retail, $12,100; trade-in, $9,850; private party, $10,500.
• Car has been locally owned and driven (one owner).
• Requirements
• Part 1. Prepare the negotiation (05/20/19 to 05/21/19)
• Get contact with your counterparty, and decide who is going to be the buyer and the seller
• Make the assessments and try to answer the following questions:

oYourroleinthenegotiationoYourtargetprice

oYourBATNA

oYourreservationprice

oDoyouwanttobethepersonmakingthefirstofferorthepersonhearingthefirst offer? Why?

oIsthereanyissueotherthanthepricethatyouwanttobringintothenegotiation?If yes, what are they?