Simulation
Used Car Buyer
For the Buyer
You are looking for a second hand car and have found a 5-year-old Chevrolet for
sale at a price of $4,200. It is a gray. 4 doors sedan with air conditioning, power brakes,
and automatic transmission. It has a V-6 engine (six cylinders arranged in V formation).
Condition
The car has covered 42,000 miles. It has a reasonably clean interior, and some
exterior scratches and rust spots. The tires probably will have to be replaced in about
10,000 miles; the brakes may have to be relined after about 5,000 miles. Tires cost
between $45 and $110 each, depending on quality and life of tire tread. New brake
linings cost between $120 and $190. The floor mats are worn and there is a dent in the
right front door. The springs in the driver's seat are weak. The automatic transmission
leaks. It needs a new gasket which costs $152 installed. A gasket is a packing material
that prevents leaks, like the rubber ring inside a jar cover. It is shaped to fit between the
edges of parts that are bolted together such as the transmission fluid pan and the
transmission housing.
"Ralph's Manual of Used Car Prices", a publication sold in store magazine racks,
lists the average retail price for a basic Chevy like yours as $3,400. A "basic" car has
power steering, power brakes, and automatic transmission. Average condition means
driven 10,000 miles a year, and with average dents, rust, or mechanical problems. The
actual selling price may be 50% less to 90% more than the average price. You have seen
cars like this advertised for $6,000 with claims that the are low mileage and in excellent
condition. Occasionally some are advertised for $2,500 saying they are in good running
condition. Most advertisements are between $3,000 and $4,000. The Chevrolet is a
moderately popular car in you area.
Background
You have been sent by your company to work in the city for a few years. You need a
car for temporary use. A second hand car suits the purpose best. You have to start your
work in three days. Time is limited.
You have contact with original owner. After driving the car and necessary check on
the car, you have decided to make a bid. You estimate that the owner's bid will be
between $4,200 and $2,500.
Say whatever you think will advance your interest. You can introduce additional
facts and assert opinions that would be plausible in this situation. You and the seller are
complete strangers. You will not see each other after this negotiation.