Bargaining: A Myth In Used Car Deals

This article explains the psychological pricing trap that many users fall into while entering into used car deals. It also gives tips to avoid being manipulated by the brick and mortar dealers.

Kansas City, KS (prHWY.com) December 21, 2010 - Bargaining is a common phenomenon in our day to day lives and we get the impression that it is customary to bargain at certain events. One such event is when you are planning to purchase used cars for sale. Each of us intuitively know that when you are buying second hand cars for sale, it is a zero sum game. This means that every time you gain a dollar it has to be offset by an equal and opposite loss by the counterparty. So we make it a priority on our agenda that we
must win this battle.

This is the psychological loophole that many dealers have exploited over and over again in numerous used car deals. It is a kind of manipulation which is very
subtle and you may consciously be unaware of your actions. Let me demonstrate a typical scenario:

* The used car dealer will show you the various cars for sale
* You will shortlist a few you like
* They will give you a price
* You will Bargain
* They will be very stubborn in the beginning but slowly relent closer to the upper end of your price
* You will feel happy and make the purchase

Now to understand what is happening, you need to understand how our mind works. If I were to ask you what is the price of a hamburger, you would probably tell
me what McDonalds sells it for? Why? Maybe because that is where most people have their hamburgers. Now the next time you listen to a price, you will
compare it with the McDonald's price and decide if it is cheap of expensive. This is called a reference price.

Similarly when the dealer makes the first quote, he knows it is ridiculously overpriced but he is setting a reference point. In the beginning he will not relent to strengthen your feeling that it is indeed the right price. But slowly they will relent a little and come closer to the upper end of your estimate. Here is where most used car deals are done, and for more visit http://www.topcarsdeal.com/cheapusedcarsforsale.php

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Tag Words: cars for sale, used car deals, second hand cars for sale, used cars for sale

Categories: Automotive

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