Back to Assignment Attempts Average / 6 6. The process of negotiating a vehicle purchase What Is Involved in Negotiating the Purchase of a vehicle? Negotiation involves the process of discussing an asset's terms of sale between a buyer and a seller. It is usually associated with higher-priced items, such as a vehicle, home, appliance, or other major (long-lived and expensive) asset. The process of negotiating involves: paying the sticker price without question. o making offers and counteroffers for the terms of the transaction. A variety of different elements associated with a vehicle's purchase are negotiable. Which of the following aspects of a car purchase transaction can you negotiate? Check all that apply. The old vehicle's trade-in value The vehicle's fuel mileage rating The vehicle's safety features, such as the presence of safety belts and air bags The new vehicle's purchase price What tactic do car salespeople and their managers do to minimize buyer negotiations? They say to the buyer, "Take all the time you need, visit other dealers, and call me when you're ready". They push for the buyer to buy it now. Carlos is completely intimidated about the thought of negotiating the price of a new car. He's called you and asked for a quick lesson in price negotiations. You've offered to help him understand several basic rules that should make his negotiations more successful. Which of the following statements will increase the effectiveness of his price negotiations? Check all that apply. Remember that the objective of a negotiation is to identify a firm, final purchase price and that each side should get as well as give up a little. Be knowledgeable about the cost of the vehicle before negotiating, and be prepared to walk away from a transaction that involves terms that are not in your best interest. Initially offer to pay the sticker price and then ask for a price reduction. Stop negotiating after one cycle of offer-counteroffer. After listening to your advice, Carlos is now considering using a buying service or a professional shopper, but he's not clear on how either type of service works. According to your research, you've determined that: A new-vehicle buying service requires the buyer to pay a discounted price from a dealer that has agreed to participate in the service. Carlos will pay a price that is often within of the dealer's invoice price. In turn, the buying service receives its income from the in the form of a finder's fee. A professional shopper, on the other hand, charges a fee that is based on the vehicle's invoice price and is paid by the . As opposed to actually purchasing the vehicle on the buyer's behalf, the buyer can also ask the professional shopper to simply collect price quotes from several dealers. This service costs but requires that the buyer finalize the deal. If Carlos wants the challenge of negotiating his best deal and completing the deal himself, then he should: Buy the car himself Use a new-vehicle buying service Use a professional shopper