Question

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 about to negotiate the purchase/sale of an automobile. The seller, who lives in the same city as You are 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.SL 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 Your role in the negotiation o Your target price o o Your BATNA o Your reservation price o Do you want to be the person making the first offer or the person hearing the first offer? Why? o Is there any issue other than the price that you want to bring into the negotiation? If yes, what are they? the sellex

Answer 1

Your role in the negotiation

Seller

You’re Target Price:

Cost of the Car	Additional Expenses made on the car	Current Price	Considering Damage	Min. Negotiating Price
$21706	$4000	$10552.313	$950	9602.313
On road Price	[Interior, Heated Seats ...]	[41.05% Depreciation]	Radial tires, dent, exhaust	17589.35-3000 [Market Value]

The calculation is based on the information from the following source:

• https://cars.usnews.com/cars-trucks/volkswagen/jetta/2011
• https://usedfirst.com/cars/volkswagen/jetta/

You BATNA

Profit Expected > Selling Price	Individual	Used Car Dealer	Back to showroom	Selling agent
2000 - 3000$ > 11602.313 – 12602.313
9602.313+(2000 or 3000)

Your reservation Price = Blue book value:

Retail	Trade-in	Private party
$12100	$9850	$10500

As a person making the first offer: This provides me with a knowledge on how to negotiate with a product or service to the buyers or customers, which I consider as the important terminology in the business named negotiating and selling strategy in marketing subject.

Are there any issues other than the price that you want to bring into the negotiation?

Yes, the dent, radial tires, exhaust which are but damaged had to be brought the notice. This action would help in building trust to forego negation in future as well as bring satisfaction to myself that I conducted a business transaction ethically.