Question

what three aspects of a vechioe purchase should be negotiated? in what order?

distinguish between mediation and arbitration?

Answer 1

The three aspects of a vehicle purchase that should be negotiated are – price of the vehicle, interest rates and value of your trade-in. This is in ascending order and means that you should first negotiate on the price of the vehicle. Here try and do negotiations with respect to lowering the price by increasing the discount being offered. Car dealers always offer discounts to lure a customer and you can negotiate on this to lower the eventual price that you will pay. The second aspect is with regards to interest rates. Many buyers chose finance through the dealership and so negotiate with the salesperson with regards to the interest rate being offered. Lastly if you are buying a new vehicle by trading in your old vehicle then try and maximize the trade in value of your old vehicle. In case you are not trading in then you can negotiate with regards to the maintenance package being offered to you by the dealer.

Mediation is typically a non-binding process in which the mediator facilitates discussions between the involved parties with the hope of resolving the dispute. The mediator brings together both the parties, hears them out and then encourages them and helps them to mutually resolve the conflict. On the other hand arbitration typically tends to be a binding process. In case of arbitration there is no full trial process but there are few people who are chosen to serve the role of judge in the case.