Assessment - Used Car Price Negotiation

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Assessment for Used Car Negotiation Simulation

Summary

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.

Description

I entered into the negotiation with the introduction of myself and explanation of why I need a Honda Civic. And I told him that I have been doing some research in the market. I did so in order to start our conversation in a frank and informative way. Then as return, the seller introduced some general information of the car, such as model, condition, mileage, etc. Most of the information I already knew from my preparation, which makes me can focus on some new points which might help to negotiate.

I started talking about critical part, price, from my very limited budget (~$4,200). I tried to make it sounds reasonable because I don’t want to borrow more money from bank. I knew it is kind of low but my intention is to hold seller’s expectation on high price. I think it works since I could feel his disappointment. The list price is $5,300 and we end up our price discussion at $5,000, sound like this is the bottom line. $5,000 is fine for me if he can offer something else which could be worth $500 to reach my target at $4,500.

Then we move our topic to other options. I asked everything I have prepared, includes warranty, service, maintenance, tires, upgrades, etc. As a result, seller could only offer an iPod which he usually used in the car and this...
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