THE USED CAR NEGOTIATION - ROLE INFORMATION FOR THE SELLER OF THE USED CAR 

You graduated from UIBE nine years ago and have worked in Beijing for eight years. You ordered a newer sporty car the day before yesterday, and you need to pay next week. Since the new car seems a little expensive for your current salary, you have to need to sell your old one. You own a 2011 Subaru LL Bean Outback Wagon. It is a 4-door V-6 with 2 moon roofs, a luggage rack, and leather seats that are heated in the front. There is a 6-disk CD changer with a BOSE stereo system. It has almost 64,000 miles on it which is low for an eight-year old car. You have replaced the battery and tires and have had regular service on the vehicle since you bought it. It recently received a 60,000 mile tune-up. You believe the car is in good condition although it does have few scratches on the front and rear bumpers (they are only cosmetic), and the back interior it is a little battered because you use it to transport your dog. You recently received a letter from the Subaru dealer encouraging you to trade-in your Subaru saying that the 2002 models were in high demand and were even worth more than they were six months ago. You are planning on buying a new car but you figure you can get more for the Subaru by selling it yourself than you would receive as a trade-in. Your job before the negotiation is to find out some objective information for the car. There are several websites where you can get objective information. One of these is Kelly Blue Book, which lists prices for cars as a function of attributes, miles, condition and area (zip code). They give trade-in values, retail values (if a dealer was selling the used car) and private party values as a function of the condition of the car. You should use this information to arrive at an asking price that you can justify. You should also set a bottom line (reservation price). The person you will be negotiating with is the first person who has shown an interest in the car since you advertised it last week (you listed a lot of the above information in the ad, but you didn’t mention the dog and you didn’t list a price). You don’t have to sell to this person, but as you are hoping to pay for your new car next week, you’d like to make a quick sale so you have cash in hand when you bargain for a new car. If you don’t sell the car today, you will settle for your BATNA which is the price a dealer will offer you. And now you start your computer and begin to reply the email from the buyer.

 Before beginning this negotiation, set the following targets for your negotiation:

 1.The price you would like to receive for the Subaru (your aspiration or target) _________________________ 

a. Objective information this is based on____________________________ _____________________________________________________________ 

2.The price you will initially present to the buyer ________________________ 

3.The lowest price you will accept for the car __________________________

 4.Your estimate of what a dealer will give you for the car __________________