Negotiate USED CAR, lecture and simulation discussion Below is some more information about participating in negotiation simulations: The course uses structured negotiation simulations t

Negotiation Preparation document (Simulation 1)

Your name_____________ ___

Your Role : Buyer Seller (circle one)

Your BATNA_____

Your RP _________

Tell me how you came up with this number

Your Target_______

Tell me how you came up with this number

Your Intended Opening Offer _________________________

Any other factors you would like to make note of as you prepare for this negotiation?

Submit on ilearn and feel free to keep a copy for yourself when you negotiate.

Exercise 1 The Used Car

Introduction

The scenario for this role-play involves a single issue: the price of 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 will ultimately be the 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 is an online listing. Before advertising it, the seller took the car to the local Volkswagen dealer, who has provided the following information:

• 2016 Volkswagen Jetta S sedan, 2.5L five-cylinder engine, automatic transmission, power steering, air conditioning, front wheel drive, dual air bags, cruise control.

• Black and grey 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, $9850; private party, $10,500. • Car has been locally owned and driven (one owner).

Confidential Role Information for BUYER

Your car was stolen and wrecked two weeks ago. You do a lot of traveling in your job (approximately 50,000 miles per year), so you need a car that is economical and easy to drive. The Volkswagon Jetta that was advertised online looks like a good deal, and you would like to buy it right away, if possible. The insurance company gave you $8,500 for your old car. You have only $1,500 in savings, money that you have intended to spend on a long-overdue vacation – a recreational opportunity that you really don't want to pass up. Your credit has been stretched for some time, so if you have to borrow any money, it will have to be at an interest rate of prime plus 5%. Furthermore, you need to buy a permanent replacement for your old car quickly, because you have been renting a new car (a Chevrolet Malibu sedan) for business purposes and when the insurance-covered rental benefit runs out (as it will, shortly) the rental costs will become prohibitive. This Jetta is the best option you have seen. As an alternative, you can buy immediately a higher-mileage 2013 Jeep Liberty ( automatic transmission, air conditioning, AM/FM/CD/MP3 stereo, 6-cylinder engine, 87,000 miles in very good condition) for $8,100 (the trade-in value). The Liberty’s fuel efficiency is only 17-21 miles per gallon, and it will depreciate faster than the Jetta. The seller of the Jetta is a complete stranger to you. Complete negotiation preparation document and submit on ilearn prior to zoom session

Negotiation Preparation document (Simulation 1)

Your name________________

Your Role: Buyer Seller (circle one)

Your BATNA_____

Your RP _________

Tell me how you came up with this number

Your Target_______

Tell me how you came up with this number

Your Intended Opening Offer _________________________

Any other factors you would like to make note of as you prepare for this negotiation?

Submit on ilearn and feel free to keep a copy for yourself when you negotiate.