Online Negotiations – Reflection 1

u03a1 – Online Negotiations – Reflection

The Used Car

Dale E. Bunton

October 31, 2010

MBA 6260

Chris Banescu
 Online Negotiations – Reflection 2

In this negotiation, I played the role of the Seller of the car, Mazda MX 6 to Faith

Kamora, who played the role of the buyer. The task involved negotiating for the right price for

the used car.

When I was planning for the negotiation the most important criteria was that the car must

certainly have all those specifications which the 1994 Jeep Cherokee Sport was offering. That is,

an air conditioning, AM/FM stereo, 6-cylinder engine and the mileage should be the same or

more than the Jeep. Also, I had firmly decided to sell the Mazda under all circumstances and not

go in for the jeep, as it would certainly turn out to be a better proposition than the jeep. I wanted

to sell the car within the budget of $4700 for sure. However, I felt that the age of the car would

be a deterrent. I thought that if the buyer would offer a good price, I would take a loan for the

additional amount needed.

I had to negotiate with Faith that the Mazda MX-6 car was in excellent condition. It had

all the features that the jeep had, i.e. an air conditioning, automatic transmission, 6-cylinder

engine, 5 doors and the same mileage as the jeep. Besides it certainly had a good brand image to

go with it. As we started negotiating, Faith made the first offer of $4,625, which she stated was

the blue book price for the car. I countered with the fact that the automobile had one owner and a

very detailed account of the automobile maintenance record. Faith was impressed with the care

of the car but her main concern, as I had expected was the age of the car. She wanted to know if

there were any major problems with the car and initially I said no, but I felt it best to be honest

and made her aware of an exhaust problem. I offered that she could bring her mechanic to look at

the car and she was satisfied with this arrangement. I originally wanted to get the cost of the

down payment for a new car of $4,700, but I decided to accept her offer of $3,700. This was less
 Online Negotiations – Reflection 3

than what I wanted but I would only have to contribute $1,000 more to have the down payment

price.

I did not do well in my first negotiation process in that I gave in without pursuing the

process farther in order to at least get my desired price. I felt that the age of the car along with

the problem with the exhaust would make it difficult for me to get the price of $4,700.

Pre-negotiation planning is the key to successful negotiations. Before opening

negotiations, parties need to frame the problem at hand, define their goals, select a negotiating

strategy, and develop a plan for implementing that strategy. Specific planning steps include

defining and prioritizing the issues and interests, developing supporting arguments, analyzing the

other party, assessing the other side's priorities, and setting targets and limits I learned from this

experience that it is very important to prepared and analyze your negotiation strategy prior to the

actual meeting. I was not prepared for some of Faith’s arguments and all could offer was the

car’s good condition in spite of its age. After a few exchanges with Faith, I gave in because I was

concerned with losing the sell. I felt it was more important to try to get whatever I could for the

car and make-up the difference that I needed for the down-payment of another car.

In all likelihood, I would probably try to re-negotiate with the Chrysler dealership on a

lower price car with a lower down payment. I am more of a realist in this type of situation. I

would have gotten more on the tried in price from Chrysler than what Faith offered, but during

the course of our negotiation, I did not use this information to my advantage. I could have told

Faith that I could get more from Chrysler as a trade-in that what she was offering. That is

something that I should watch for in future negotiation, to be better prepared and use such vital

information to assist in gaining what I actually wanted.