Final answer:
When car dealers "low-ball," they offer a very low price for a car as a negotiation strategy. The goal is to start the negotiation at a lower point and potentially reach a more favorable price for the dealer. This tactic can be effective, but also involves a delicate balance.
Step-by-step explanation:
When car dealers "low-ball," they are engaging in a negotiation strategy in which they offer a very low price for a car. This tactic is used to try to get the buyer to agree to a lower price than they originally intended to pay. By offering a low-ball price, the dealer hopes to start the negotiation at a lower point and eventually reach a price that is more favorable for the dealer.
For example, if a car is listed for $10,000, the dealer might low-ball and offer $7,000. If the buyer refuses the low-ball offer, the dealer can then gradually increase the price during the negotiation process, eventually settling on a higher price than the initial low-ball offer but still potentially lower than the original list price.
Low-balling can be a tricky strategy for car dealers because it involves a delicate balance between offering a low enough price to entice the buyer, but not so low that the buyer becomes suspicious of the car's condition or the dealer's motives.