Purchase Solution

Negotiating Buying and Selling Cars

Not what you're looking for?

Ask Custom Question

BUYING AND SELLING

Barney wants to buy a car. He spotted a high quality used car on a dealer's lot over the weekend. He would buy it immediately if he had more cash. The dealer will only give him $4,800 on a trade for his current automobile. The car Barney wants is really great, and chances are good it will be sold in short order. Barney has planned carefully and decided he can swing the deal if he can sell his present vehicle to a private party for around $6,200. This would give him $5,000 for a down payment and $1,200 for accessories he wishes to add. The car is in good condition except for a couple of minor dents in the fender. The snow tires for his current car won't fit the new one, but can probably be sold and that will help. His new stereo system (installed last month) can be removed and placed in the new car. Billie, one of Barney's coworkers, heard that Barney wants to sell his car and plans to talk to him about it. Her daughter is graduating from college in 3 months and will need a car to drive to work. Billie can only afford about $5,500 including any repairs that might be required and she needs to reserve enough money for snow tires. Her daughter has seen the car and thinks it's sporty; especially with the stereo. Billie checked the book price for the model of Barney's car, and knows the average wholesale is $4,800 and the average retail price is $6,000.

PLEASE ANSWER THE FOLLOWING QUESTIONS.

1. What are Barney's objectives?

2. What are Billie's objectives?

3. What are likely to be the points of conflict?

4. What power does Barney have? What power does Billie have?

5. How important is time to Barney?

6. How important is time to Billie?

7. What are some possible points of compromise?

Purchase this Solution
Solution Preview

1. What are Barney's objectives?

His main objective is to buy a new car that he likes with the desired accessories by selling his old car. He has a limited budget which will be funded by selling his old car.

2. What are Billie's objectives?

Billie's objective is to buy a good car for her daughter that she will require for driving to work. She has a limited budget at her disposal for buying the car.

3. What are likely to be the points of conflict?

The likely points of conflict will be pricing as well as the stereo. Barney will not like to sell it below ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Marketing Management Philosophies Quiz

A test on how well a student understands the basic assumptions of marketers on buyers that will form a basis of their marketing strategies.

View More Free Quizzes
Related BrainMass Solutions

  • Disintermediation and internet distribution

    The advantages of using internet distribution for selling cars are: • Some customers prefer not to haggle or discuss with dealers, as it can be stressful.

  • Tesla Motors Inc

    Tesla should be allowed to directly operate stores and sell to consumers in New Jersey. The justification is that selling cars directly reduces the cost of selling and the customers get the cars at lower prices.

  • Apprenticeship Proposals

    as placing orders for new cars from manufacturers, updating stock lists, and purchasing used cars - How to inform existing and likely customers about new vehicles and deals The modelling and practice techniques that will be used: - The students

  • How does the Internet Affect Buying Behavior?

    However, companies selling merchandise online should ensure that all customer information is safe and secure so they continue to shop with them. This solution answers various questions about how the internet affects buying behavior.

  • "Direct Materials" and "Indirect Materials"

    For example, an auto manufacturer estimates how many cars it will make during a year and contracts with two or three steel mills to supply most of the steel it will need to build those cars.

  • Negotiations Idiosyncratic Deal

    Some examples of using an agent would be involving a property agent for buying a house, sales person negotiating a sales deal on company's behalf, involving an investment banker when buying or selling a business entity, involving a divorce lawyer when

  • Distribution Strategies for Cars and Canned Soups

    Since they last for many uses and that they require large monetary outlay from the buyers, target buyers require a lot of information and aggressive selling and marketing tactics before they are convinced to buy.

  • Discussing Communication Negotiation

    When negotiating for a car, do not buy the car the day you walk into the showroom. Go home, absorb everything the dealer said and then go back. This is true negotiating.

  • Compare luxury car buyers by age, income, & education

    397984 Descriptions and comparisons of ages, household incomes, and education of luxury car buyers For many years the top-selling luxury car in North America was the Cadillac. It reigned from 1950 to 1998.

View More Related Solutions