Negotiating Buying and Selling Cars

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?