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Confidential Role Information for SELLER You have agreed to buy a new Subaru from a dealer. The down payment you will need to make on the new car is $10,000, which lets you take out a loan with manageable (but steep) monthly payments. You are low on ready cash, so if you can't come up with the down payment by selling your Volkswagen Jetta, you will have to borrow it at prime plus 5% interest. You are supposed to pick up the Subaru first thing tomorrow morning, so you want to sell the Jetta today. You advertised the Jetta (which is in particularly good condition) in online, and have had several calls. Your only really good prospect right now is the person with whom you are about to bargain – a stranger. You don't have to sell the car to this person, but if you don't sell the Jetta right away, you will have to pay high interest (on the Subaru down payment) until you do. The Subaru dealer will give you only $9,400 for the Jetta (as a trade-in), since it will probably have to be resold to a Volkswagen dealer or to a used car broker. The local Volkswagen dealer is not anxious to buy the car from you because a large shipment of cars has just arrived; in any case, you probably would not receive more than $9,400. The potential buyer of the Jetta is a complete stranger to you. ♦ ♦ ♦ Before beginning this negotiation, set the following targets for yourself. 1. The price you would like to receive for the Jetta __________ 2. The price you will initially present to the buyer __________ 3. The lowest price you will accept for the car __________ .
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