Question

Roberto is considering buying a new car. He sees that the dealership is offering a $800 cash-back incentive to customers on the exact model he is looking at. After a successful test drive it is time to start negotiating. The MSRP on the car is $13,500. Based on our lesson in class, what price would be the best starting point for him to begin his negotiations?

Answer 1

Based on the $800 cash-back incentive and the $13,500 MSRP, the best starting point for negotiations would be $12,700. This price accounts for the incentive and provides room for further negotiation.

To determine the best starting point for negotiations, we need to consider the cash-back incentive and the manufacturer's suggested retail price (MSRP) of the car.

Given information:

- Cash-back incentive: $800

- MSRP: $13,500

To find the starting price for negotiations, we need to subtract the cash-back incentive from the MSRP. This is because the incentive is a reduction in the overall price that the dealership is offering.

Calculation:

Starting price for negotiations = MSRP - Cash-back incentive

Starting price for negotiations = $13,500 - $800

Starting price for negotiations = $12,700

Therefore, the best starting point for Roberto's negotiations would be $12,700. This price takes into account the cash-back incentive and allows room for further negotiation and potential discounts.