Role Play

The Used Car Role Play

Introduction:

Recently after searching in the newspaper for a reasonable car, I was fortunate to find Mandy Marquardt who was selling her Volkswagen Jetta 2.5 Sedan. Mandy and I met at Penn State Lehigh Valley on Wednesday, January 23, 2013 to negotiate the 2006 Volkswagen Jetta as we were both eager to move forward with the transaction. We introduced ourselves. Mandy reviewed the car’s history and showed me the car fax information. I made a proposal to Mandy for $8,000. Mandy replied with her proposal of $10,866. Since we both wanted to benefit from this sale, Mandy and I felt very comfortable as we began the negotiating process. As we continued, we developed a sense of trust.

Analysis

As the buyer, my BATNA was a 1995 Jeep Cherokee SE. However, after reviewing the specifications of the Jeep Cherokee, I realized the Jetta would be a better long-term investment. Mandy and I negotiated an agreement that benefited both of us from the sale of the Jetta. In the back of Mandy’s mind she did not want to have to pay high interest on her Subaru down payment. While establishing trust with Mandy, I quickly realized she was a very honest person. If this deal was successful; I would receive a great car and a new friend. Mandy’s asking price was $10,866, which was not in my bargaining range. Mandy then lowered her price to

$10,056.

The price that Mandy continued offering me was still too high. I knew as a buyer that I could not afford to pay the price she was asking. I explained my financial situation and that I was purchasing the car for traveling to school and to work. I once again asked her to lower her price of the car. As a result, I would be willing to take a 5% loan to purchase the car. Mandy was very responsive to my integrity and intentions for this purchase. After a period of time, we both were able to learn more about each other and how willing we were to come upon an agreement. We negotiated further and worked with...